TFSA Investors: The 4 Very Best TSX Stocks to Own This Decade

TFSA investors should look to snatch up TSX stocks like Enbridge Inc. (TSX:ENB) and goeasy Ltd. (TSX:GSY) in March.

| More on:
A person looks at data on a screen

Image source: Getty Images

The annual contribution amount for the Tax-Free Savings Account (TFSA) rose to $6,500 this year. That brought the cumulative contribution room to $88,000. Today, I want to look at four of the best TSX stocks to hold in your TFSA for the rest of this decade and beyond. Let’s jump in.

Here’s why you should own this dividend heavyweight in your TFSA in the 2020s

Enbridge (TSX:ENB) is the largest energy infrastructure company in North America. Shares of this top energy TSX stock have dropped 6.9% year over year as of close on March 14. The stock is down 1.9% so far in 2023.

This company released its fourth-quarter and full-year fiscal 2022 earnings on February 10, 2023. Enbridge delivered adjusted earnings of $5.7 billion, or $2.81 per common share, for the full year — up from $5.6 billion, or $2.74 per common share, in fiscal 2021. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and it aims to give a clearer picture of a company’s profitability. Enbridge posted adjusted EBITDA of $15.5 billion — up from $14.0 billion in the prior year.

Shares of this TSX stock are trading in neutral value levels at the time of this writing. TFSA investors can also count on its quarterly dividend of $0.887 per share. That represents a tasty 6.7% yield.

Don’t sleep on this TSX stock with huge potential!

goeasy (TSX:GSY) is a Mississauga-based company that provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to Canadian consumers. High interest rates have put immense pressure on Canadian consumers, which is driving more citizens to explore alternative lending services. This TSX stock is down 11% in the year-to-date period.

In its final batch of fiscal 2022 results, goeasy posted fourth-quarter loan growth of 54% to $206 million. Meanwhile, its overall loan portfolio climbed 38% to $2.79 billion. goeasy posted annual adjusted earnings-per-share (EPS) growth of 11% to $11.55.

TFSA investors should be excited about goeasy’s growth potential and its impressive streak of dividend growth. Indeed, goeasy qualifies as a Dividend Aristocrat, having delivered nine straight years of dividend hikes. This TSX stock also boasts a favourable price-to-earnings (P/E) ratio of 13.

This dividend stock is a great value pick for your TFSA

Cogeco Communications (TSX:CCA) is another dependable dividend TSX stock that I’d look to stash in a TFSA for the long haul. This Montreal-based communications corporation services customers in Canada and the United States. Its shares have plunged 39% compared to the previous year.

In the fourth quarter of 2022, Cogeco posted revenue growth of 12% to $725 million. Moreover, adjusted EBITDA increased 17% year over year to $347 million. For the full year, Cogeco posted revenue and adjusted EBITDA growth of 15%.

The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. Cogeco last had an RSI of 21, putting the stock in technically oversold territory. This TSX stock boasts a very attractive P/E ratio of 6.6 at the time of this writing. Better yet, it offers a quarterly dividend of $0.776 per share, which represents a strong 5% yield.

One more exciting TSX stock to own for the long haul

ATS (TSX:ATS) is the fourth and final TSX stock I’d look to snatch up in our hypothetical TFSA today. This Cambridge-based company provides automation solutions to a worldwide client base. Its shares have surged 29% so far in 2023.

The company unveiled its third quarter fiscal 2023 earnings on February 9. It posted revenue growth of 18% to $647 million in the third quarter of fiscal 2023. Meanwhile, adjusted basic EPS remained flat at $0.52. For the full year, ATS delivered revenue growth of 16% to $1.84 billion. Order Bookings rose to $2.51 billion compared to $1.81 billion at the end of fiscal 2022.

This exciting TSX stock is geared up for strong earnings growth going forward. Investors should seek exposure to automation-focused equities.

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 Ambrose O'Callaghan has positions in Goeasy. The Motley Fool recommends Cogeco Communications and Enbridge. The Motley Fool has a disclosure policy.

More on Investing

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

1 Strong Momentum Stock to Buy on the Current Dip

Waste Connections (TSX:WCN) stock is holding its own and is worthy of buying on any small (or large) dips.

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.

Retirees: What Is the CPP Enhancement and How Does it Work?

The CPP enhancement will increase your pension payout in retirement. But you still need other income sources to supplement the…

Read more »

Nuclear power station cooling tower
Energy Stocks

Should Investors Buy the Dip in Cameco Stock?

Cameco (TSX:CCO) stock recently experienced a slight dip, and with earnings around the corner, it might be time to pick…

Read more »

Path to retirement

Invest in These TFSA Stocks to Sail Into a Serene Retirement

Is your TFSA set for safety or growth? Having these solid TFSA stocks provides a blend of both.

Read more »

A close up image of Canadian $20 Dollar bills

3 No-Brainer Stocks to Buy With $200 Right Now

The criteria for no-brainer stock varies among investors. For conservative investors, the list is usually small and rigid. In contrast,…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Passive Income: 4 Stocks to Buy and Never Sell

These four TSX dividend stocks could boost your passive income.

Read more »

Family relationship with bond and care
Dividend Stocks

Invest in These TSX Stocks Now and Retire With Peace of Mind

Canadian stocks like Brookfield Asset Management (TSX:BAM) offer long term investment potential.

Read more »

growing plant shoots on stacked coins
Dividend Stocks

2 Risky Dividend Stocks to Avoid (and 2 Safe Ones)

Looking for dividend income? Here are two stocks to avoid and two stocks to readily buy for safe and steady…

Read more »