If you’re an investor using a Tax-Free Savings Account (TFSA), you likely already know many of the benefits. Rather than use an account that makes you wait until you’re able to take out the cash without penalties, the TFSA allows you to invest each year and take it out at any time tax free.
Perhaps there are many investors out there right now wondering if they should be investing in a TFSA right now. The answer is, of course, yes! Right now is actually a great time to invest in your TFSA, especially if you invest in dividend stocks. You can get a great deal on some long-term holds that will last you decades.
So, if you’re looking for a deal for your TFSA and don’t need the cash immediately, these are the three dividend stocks I would recommend today.
Canadian Utilities
The utility sector has long been a safe one for investors. That’s because we need power no matter what happens on the market. If you’re looking for income, then this is by far one of the best places to look. And at the top of the utility list is Canadian Utilities (TSX:CU).
CU stock is the only one on the TSX with Dividend King status. It’s raised its dividend each year for the last 50 years, now offering a yield at 4.79%. That’s far higher than usual, as CU stock is also down by 2% in the last year. Yet in the last few months it’s been on the upswing, rebounding after making a tremendous fall in 2022.
I would certainly consider this stock for your TFSA, as you’ll receive stable income from its utility operations. Income that can certainly help through this next year and beyond.
Brookfield Renewable
Another one of the dividend stocks that remains a great option for investors in the present and future is Brookfield Renewable Partners (TSX:BEP.UN). BEP stock invests in — you guessed it — renewable energy. But these assets are located around the world, providing you with diversification both in location as well as types of assets.
The company continues to make acquisitions and joint ventures, and it recently reported revenue results during its earnings report. Yet while it’s made some headway in terms of share price, it’s nowhere near all-time or even 52-week highs. I would use this opportunity to pick up BEP stock while it remains down.
How far down? BEP stock currently trades down 17% in the last year. You can therefore bring in a dividend yield at 4.32% as of writing as well.
The North West Company
Finally, there are few retailers that I would recommend during this time. But one of them has to be The North West Company (TSX:NWC). NWC stock is a great option, because it’s where all other retailers aren’t. These are rural areas where there is little competition. The company swoops in and purchases these retailers to support its growth.
And again, the company has done quite well in 2023, despite share performance. It continues to beat estimate after estimate, with shares down just 3.5% in the last year, doing quite well over the last six months.
It remains at 15.65 times earnings, just shy of value territory, and you can pick it up as well with a dividend yield at 4.05%.
