TFSA Investors: 3 TSX Stocks to Outperform the Market

Investors looking for major growth in TSX stocks for their TFSA in 2023 should certainly consider these three on the TSX today.

| More on:
Early retirement handwritten in a note

Image source: Getty Images

The TSX today continues to show some signs of improvement, but is still down compared to all-time highs. As of writing, the TSX is down 3% in the last year. Now, this is a huge improvement after falling to 52-week lows in October 2022. However, Tax-Free Savings Account (TFSA) investors are most likely sick of seeing these losses.

So let’s fix that. Today, we’ll look at three TSX stocks TFSA investors can buy up to outperform the market. And not just in 2023, but far beyond.

CP stock

Canadian Pacific Railway (TSX:CP) looks like it hit the three-digit range and it’s now here to stay. The company was up and down for a while there as TFSA investors waited to see if its Kansas City Southern acquisition would pull through. Now, it looks like all but a certainty with CP expecting approval to come “within a matter of weeks.”

That will be huge for TFSA investors. The company is in a strong financial position, which helped lead it to the massive acquisition. And that acquisition will pay huge rewards, and already has for investors who picked up the stock. It’s now one of the rising TSX stocks, up 17.5% in the last year alone!

While it’s not the dividend payer it once was because of the acquisition, those looking for growth through returns should definitely consider the stock – especially TFSA investors looking to make back some of their losses from the last few years.

Northland Power

Another strong choice for TFSA investors among TSX stocks is Northland Power (TSX:NPI). Northland stock has a few things going for it. The company is a monthly dividend payer, with a yield at 3.52% as of writing. Further, it’s in the renewable energy sector.

This last point is important, as the company has created a massive portfolio of renewable energy assets in locations around the world. The diverse portfolio means no matter what type of renewable energy future lies ahead, Northland stock has access to it.

Yet right now, Northland stock offers incredible value. After climbing to 52-week highs in August, shares have dropped down. Except those shares have still beat out the market, back to where they were in February 2022. Trading at 12.2 times earnings, I would pick up the stock while you can, as the drop is due to short-term issues of inflation. Something every company is hampering with right now.

Restaurant Brands

Finally, if you want a crazy growth stock, then I would consider Restaurant Brands (TSX:QSR). RBI stock is a strong choice among TFSA investors who are looking for TSX stocks on the move. Shares are already up 33% in the last year alone, with an incredible amount of momentum surging it upwards.

In fact, during this year shares should continue to grow. It comes down to a recession. RBI stock may have crashed during the pandemic, but it created the opportunity to get its product to consumers any way possible. Now, those consumers are likely to continue purchasing even during a recession, given it’s a cheaper way to eat out compared to the pricier options chosen during periods of growth.

So TFSA investors should look to TSX stocks like this one, which offers protection during a recession and growth, as well as a 3.26% dividend yield as of writing.

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 positions in Canadian Pacific Railway. The Motley Fool recommends Canadian Pacific Railway and Restaurant Brands International. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

grow dividends
Stocks for Beginners

Why Cargojet Stock Is Surging Past 52-Week Highs

Cargojet (TSX:CJT) stock surged by 17% after a new deal was announced, with upgrades coming in as well for the…

Read more »

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada
Dividend Stocks

1 Dividend Superstar I’D buy over TD Bank Stock

TD (TSX:TD) may still be discounted, but there other great options to buy right now. Here's a top pick better…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Stocks for Beginners

Building a Million-Dollar TFSA: A Step-by-Step Guide for 2024

To get that million-dollar TFSA, it will take consistency and commitment. But if you can be patient, it doesn't have…

Read more »

Target. Stand out from the crowd
Stocks for Beginners

If I Could Only Buy 2 Stocks in 2024, I’d Pick These

Do you want some of the best stocks in 2024 to buy for long-term growth? Here are two options that…

Read more »

An airplace on a runway
Stocks for Beginners

Is Bombardier Stock Still a Buy After Surging 46% in May?

Here are some key fundamental factors that could help Bombardier stock continue soaring in the years to come.

Read more »

gold stocks gold mining
Stocks for Beginners

1 Gold Stock to Buy for More Growth, Less Risk

This gold stock has seen shares rise 15% in the last year. But it's more than just the price of…

Read more »

Gas pipelines
Stocks for Beginners

3 Reasons to Buy Enbridge Stock Like There’s No Tomorrow

Enbridge (TSX:ENB) is a superb long-term option. Here's why you should buy Enbridge stock right now and hold it for…

Read more »

growing plant shoots on stacked coins
Stocks for Beginners

1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up…

Read more »