Sleep is the worst and best part of my day. I look so forward to jumping into my bed at night, but the process to get there is insanity. I have two kids under five, with each acting like they’ve taken a shot of espresso before bath time. But sometimes, I lie awake, concerned about their future — especially affording their present and future care.
It’s been a really stressful time for Canadian investors. Many have reported that finances is a major concern for keeping them up at night. You’re watching your Tax-Free Savings Account (TFSA) drop lower and lower, with no end in sight. That is why today, I’m here to help.
Every investor would do well to come up with a long-term strategy for their TFSA. That way, even downturns like this one won’t seriously injure your savings. Investing in these TSX stocks then will provide you with a solid long-term strategy that will allow you to rest easy come bedtime. Well, unless you have kids like mine.
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goeasy
goeasy (TSX:GSY) is a strong, low-risk option for those seeking growth. The TFSA is a perfect place to park it, because it’s proven over the decades to only climb higher and higher. It started as a home appliance provider and has since expanded to loans as well.
During this downturn, it’s continued to see its revenue perform well. In fact, it’s even hit record performance! With that in mind, goeasy stock is certainly a strong long-term choice. However, it remains valuable right now as well.
goeasy stock currently trades at a valuable 14.58 times earnings, offering a dividend yield at 3.08%. Shares are down 11% in the last year but up 4,358% in the last two decades! That’s a compound annual growth rate (CAGR) of 20.89% to consider holding for years to come.
NorthWest REIT
Another strong choice I’m always happy to hold is NorthWest Healthcare Properties REIT (TSX:NWH.UN). NorthWest stock is a lot newer, but it’s certainly set up for long-term growth. This comes from being one of the dividend stocks in the solid healthcare sector, with a focus on the stability of properties.
What’s more, NorthWest stock currently boasts an average lease agreement at 14 years, and with a 97% occupancy rate! While it has yet to increase its dividend, that’s because it’s using its cash to create an even larger global portfolio of healthcare properties.
NorthWest stock also trades in value territory at just 8.1 times earnings. Furthermore, it has an ultra-high dividend yield at 8.39%. In the last year, shares have come down by 26%. However, since coming on the market a few years back shares are up 88% for a CAGR of 8.45%.
TSX60 Index
Now, if you’re wanting a lot of diversification, then there’s really only one other stock I would consider buying. That’s the iShares S&P/TSX 60 Index ETF (TSX:XIU). This exchange-traded fund (ETF) invests in the top 60 stocks on the TSX, with a team of management constantly updating the portfolio. So, it’s like owning a percentage of each and every stock offered!
Over time, TSX stocks do quite well. The market may drop or dip, but it always recovers. So, while you may not see a sudden 30% jump, you won’t see a sudden fall either in this case. You can look to the past performance of these companies and TSX stocks on XIU in general to compare.
It continues to trade in value territory at 12.47 times earnings, offering a 2.82% dividend yield. Shares are on par with where they were this time last year, but up 483% in the last 20 years! That’s a CAGR of 9.2% that will get you through this downturn, and any others that attempt to give you nightmares.
