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.
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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.
