TFSA Investors: Don’t Wait. Now Is the Time to Buy These Top TSX Stocks

These top TSX stocks offer long-term growth, dividends, as well as significant value at current levels for TFSA investors.

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The TSX today offers some stellar deals right now for Tax-Free Savings Account (TFSA) investors. Once you have most of your portfolio thought through with your financial advisor, there are some significant deals you can lock up with the remaining cash you have, including some of the top TSX stocks on the market.

What makes a top TSX stock?

I consider top TSX stocks to be blue-chip companies on the TSX today — specifically, those that fall under the TSX60. If you’re going to look for some top TSX stocks, I would certainly start there.

However, if you’re a TFSA investor looking for a deal that’s going to last years, if not decades, in the future, then you need to look at industries.

Top TSX stocks I would consider are those providing essential services — those that offer a deal now but are due for a sustained rebound that should last decades. In this case, these are the ones I would recommend on the TSX today.

The top TSX stocks I’d pick today

If you’re looking for essential companies on the TSX today, there are a few I would recommend that offer significant value. First of all, there are the Big Six banks, but above them all, I would choose Royal Bank of Canada (TSX:RY).

Royal Bank stock offers value trading at 12.13 times earnings as well as a dividend yield at 4.16%. It’s come back from every downturn strong and currently is the largest of the banks by assets. It’s also expanding and offers lucrative revenue streams in the wealth and commercial sector.

Another top stock I would invest in is Canadian Tire (TSX:CTC.A). This is one of the TSX stocks again trading in value territory at 9.67 times earnings. While it’s not necessarily an essential service provider, it does offer essential products. Further, it’s a retailer that’s proven, even during a downturn, that it can offer the best products at a cheap price due to having storage on site.

Canadian Tire stock holds a dividend yield at 4.09% as of writing, so again it’s a great deal considering what’s on offer on the TSX today.

Finally, a truly essential service is power. That’s why although it’s new, I would certainly consider Hydro One (TSX:H) on the TSX today. It’s one of the TSX stocks that provides utilities through hydro power, which is also a renewable energy source. So, as we move to a clean energy future, Hydro stock should continue to climb.

Right now, it offers a 3.04% dividend yield, and remains at fair value trading at 21.35 times earnings. Given how new it is, I would certainly want this in my TFSA for decades. So, now is the right time to buy.

Bottom line

If you’re looking for long-term holds, there are top TSX stocks out there offering true value and high dividends on the TSX today. So, don’t wait any longer. Pick them up now, lock in some fixed income, and see shares climb for years tax free.

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 Royal Bank Of Canada. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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