TFSA Top Stocks: 2 Cheap Dividend-Payers to Buy Before January Ends

TFSA investors can appreciate dividend-paying stocks like Barrick Gold at these modest valuations.

The latest U.S. GDP number left many TFSA (Tax-Free Savings Account) investors feeling upbeat on Thursday, as stock markets rose throughout the day. American GDP growth came in at a solid 2.9% for the fourth quarter. That number was better than expected and doesn’t signal a recession is nigh.

Indeed, it’ll be interesting to see the first round of numbers for January. With inflation cooling down while GDP remains comfortably positive, a soft landing could go from an ideal situation to hope for the most plausible.

That’s why it’s vital to stay invested, even when you feel the chop of the markets. At the end of the day, markets move in irrational and confusing ways. Not even the smartest economists out there can accurately or consistently predict what Mr. Market will be up to next. Simply put, Mr. Market is always full of surprises. And it’s best not to think you know what’s on his mind. Odds are he’ll already be a step or two ahead of you!

Not to be left behind, we’ll have a look at two intriguing dividend payers that I view as terrific bets to buy before January closes off. Needless to say, the hot start to the year may not continue unless earnings can hold up in the face of ongoing headwinds. In any case, the following two names look like great TFSA additions right here, whether or not the market bottom has finally been reached.

A plant grows from coins.

Source: Getty Images

A golden pick for TFSA investors: Barrick Gold

Barrick Gold (TSX: ABX) isn’t the type of play you’d look to if you’re looking to play the next bull market. Indeed, many TFSA investors felt some of the bullish vibes return after many months of gloominess over Federal Reserve and Bank of Canada rate hikes and their potential impact on earnings. This week saw quite a sentiment shift, with the Bank of Canada finishing up with its rate hikes (at least for now), while the U.S. GDP beat the Street estimate. Despite the upbeat tone, I’d continue to stay cautious, as many bear market rallies tend to come to quick halts.

Now, nobody knows for sure if we’ll be heading higher or lower from here. Regardless, I do think Barrick is a great stock to punch your ticket to low-correlated returns in a year that’s sure to be full of surprises. Notably, gold has been hot of late, leading miners like ABX stock up over 45% since early November.

I think the rally in gold is just getting started, as TFSA investors reconsider what they view as a “safe” long-term store of wealth, as a crypto winter looks to approach. Barrick is a well-run miner and its 2.1% dividend yield is a gem for those seeking reliable income.

Big passive income on the cheap: Enbridge

Enbridge (TSX: ENB) is a retiree favourite that’s continued to spoil TFSA investors with juicy dividend hikes. In recent years, the stock has begun moving higher again, thanks in part to higher energy prices and optimism surrounding the industry. As a pipeline firm, Enbridge isn’t as dependent on high oil prices. However, it does stand to benefit from producers who find the incentive to increase production in response to higher energy prices.

Over the past year, ENB stock’s rally has come to a halt. Meanwhile, the dividend yield has swelled to around 6.55%. Sure, the payout is overly generous, but it’s one that can pad your passive income. I remain a fan of ENB stock and view it as one of my TFSA top picks in the midstream space while shares trade at around 20 times trailing price-to-earnings.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

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