TFSA Investors: Where to Put That New $6,500 Contribution Room

These stocks may be trading high, but they still offer value for TFSA investors seeking out the best stocks to buy right now.

| More on:
Person slides down a stair handrail

Image source: Getty Images

It’s been almost a month since Canadians were treated to another $6,500 of contribution room for their Tax-Free Savings Account (TFSA). But let’s be honest, you have yet to invest in it, am I right?

I get it. TFSA investors are nervous right now! A recession is on the way, with the TSX today continuing to trade lower and lower. Earnings aren’t proving positive for even the biggest companies, loans are coming in at lower levels for banks, and layoffs are already underway. But if you’re one of the TFSA investors looking for long-term growth, I wouldn’t ignore today’s deals.

That’s right. There are still deals to be had as long as you’re willing to wait. Not wait to buy necessarily, but wait to sell. If you hold these stocks for years, they could be some of the best stocks to buy right now.

TFI stock

Shipping has become huge in the last decade. Sure, shipping has always been necessary, from the beginning of human existence practically. Yet, with the growth of e-commerce and demand for speedy deliveries, it’s become even more important.

Yet, any company related to e-commerce has seen a huge drop in the last year. This comes from the belief that there will be less consumption, and therefore less need for companies like TFI International (TSX:TFII).

It’s simply not true.

TFI stock is one of the best stocks to buy right now for TFSA investors. It’s cheap trading at just 13.9 times earnings, offers a 1.29% dividend yield, and continues to report estimate-beating earnings. Shares are up 21% in the last year as well, offering some protection in a recession environment.

Element Fleet

Speaking of shipping, Element Fleet Management (TSX:EFN) is another strong company to consider on the TSX today. Rather than owning its own fleet, it manages the fleet of vehicles of other companies. And it continues to expand, offering consulting to firms across the world.

Like TFI stock, it’s one of the best stocks to buy right now given its estimate-beating performance. In fact, shares are up a whopping 55% in the last year alone! Yet, it’s still fairly valued at 21 times earnings, and has a fairly low share price at $19 as of writing.

So perhaps you want to gain exposure to several fleets of shippers rather than just one? Then, Element stock is certainly one of the stocks I’d consider for TFSA investors.

Teck stock

Finally, for true value and growth, I’d say perhaps the best option to date has to be Teck Resouces (TSX:TECK.B). Teck stock currently trades at a very low 6.8 times earnings, offering a dividend yield of 0.88% as of writing. And while shares fell earlier last year, those shares are now climbing steadily upwards.

Why? Teck stock made a sale of half of billion in assets to help strengthen its balance sheet. It’s now primed for any growth opportunity that comes its way. And given it’s involved in every type of basic material, there are plenty of opportunities around.

So with value and growth already available, Teck stock is certainly one of the best stocks to buy right now. Shares are already up 44% in the last year, and could rise even higher as TFSA investors seek protection in a recession environment.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

pipe metal texture inside
Dividend Stocks

TC Energy Stock: An Undervalued 7.8% Dividend Stock

TC Energy stock appears to be trading at a discount of about 20%.

Read more »

Man data analyze
Dividend Stocks

1 Dividend Stock Down 13% to Buy Right Now

Parkland (TSX:PKI) stock may be down by 13%, but shares are still way up in the last year. So, this…

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

TFSA 101: How Pensioners Can Earn $4,987.50 Per Year in Tax-Free Passive Income

Retirees can use this TFSA strategy to boost portfolio yield while reducing risk.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Retirees: Here’s How to Boost Your CPP in 2024

By making RRSP contributions, you can lower your after-tax CPP amount. You can then use the RRSP space to invest…

Read more »

Dividend Stocks

Buy 3,000 Shares of This Super Dividend Stock For $3,300/Year in Passive Income

Are you looking for a super dividend stock to buy now and generate a whopping passive-income stream? Here's an option…

Read more »

Question marks in a pile
Dividend Stocks

Where Will Brookfield Infrastructure Partners Stock Be in 5 Years?

BIP (TSX:BIP) stock fell dramatically after year-end earnings, but there could be momentum in the future with more acquisitions on…

Read more »

Utility, wind power
Dividend Stocks

So You Own Algonquin Stock: Is It Still a Good Investment?

Should you buy Algonquin for its big dividend? Looking forward, the utility is making a lot of changes.

Read more »

stock data
Dividend Stocks

Passive Income: How Much Should You Invest to Earn $1000/Year

Dependable income stocks like Enbridge can help you earn worry-free passive income regardless of market and commodity cycles.

Read more »