The Tax-Free Savings Account (TFSA) was introduced all the way back in January 2009 as another registered account to help Canadians save and invest. Unlike the Registered Retirement Savings Plan, the TFSA offered maximum flexibility. Moreover, contributions would not offer a tax-return bonus, but all capital gains and income earned are entirely tax free.
In the beginning, the milestone of becoming a TFSA millionaire was seemingly only achievable through extremely high-risk, high-reward investments. Today, the cumulative contribution room for a TFSA stands at $88,000. The path towards $1 million is still a steep hill, but not so daunting that we must explore extremely high-risk strategies.
Today, I want to zero in on four stocks that could give us a legit shot at growing our TFSA to $1 million from a starting point of $88,000. Let’s dive in!
This undervalued stock offers big income for your TFSA
Olympia Financial (TSX:OLY) is a Calgary-based company that operates as a non-deposit taking trust company in Canada. Its shares have increased 32% in 2023 as of close on April 11. The stock is up 73% in the year-over-year period.
This company released its fourth-quarter (Q4) and full-year fiscal 2022 earnings on February 24, 2023. Olympia posted total revenue growth of 47% to $72.1 million. Meanwhile, earnings before income tax jumped more than 100% to $18.6 million. Shares of Olympia still possess a favourable price-to-earnings (P/E) ratio of 15. TFSA investors should also be excited about its quarterly dividend of $0.45 per share. That represents a tasty 6% yield.
Here’s why I’m still stacking Park Lawn stock in 2023
Park Lawn (TSX:PLC) is still one of my favourite TSX stocks to target for the long term. This Toronto-based company owns and operates cemeteries, crematoriums, and funeral homes in Canada and the United States. Its shares have increased 6.4% so far in 2023. The stock is still down 16% year over year.
The deathcare market is geared up for big growth going forward, and Park Lawn is the fastest growing among its peers in North America. That should pique the interest of TFSA investors. Shares of Park Lawn are trading in favourable value territory compared to its industry peers. Meanwhile, it offers a quarterly dividend of $0.114 per share, which represents a modest 1.6% yield.
TFSA investors may want to consider this interesting streaming stock
WildBrain (TSX:WILD) is a media company that develops, produces, and distributes film and television programs around the world. The Toronto-based company’s library includes Peanuts, Bob the Builder, Air Bud, and others. Its shares have dipped 12% in the year-to-date period.
In Q2 2023, WildBrain saw revenue fall to $140 million compared to $153 million in the prior year. Meanwhile, it posted a net loss of $13.0 million over net earnings of $4.6 million in Q2 2022. WildBrain offers TFSA investors exposure to a Canadian streaming stock. This company still has a shot at strong growth if it can more effectively take advantage of the burgeoning children’s entertainment streaming space.
One more stock that could deliver a home run in your TFSA
Air Canada (TSX:AC) is the fourth and final stock I’d look to snatch up in a TFSA, as we approach the mid-point in April 2023. This is the largest commercial airline in Canada. It faced major challenges during the COVID-19 pandemic, mirroring its global peers. The stock is up marginally in the year-to-date period.
The company showed signs of a huge rebound in Q4 2022. Passenger revenues hit a record $4.06 billion. Meanwhile, operating revenues surged 71% to $4.68 billion. Shares of Air Canada are trading in attractive value territory compared to its industry peers at the time of this writing.
There is skepticism surrounding the airline industry, as fears of a recession have grown. Regardless, I’m still bullish on Air Canada stock in a TFSA built for the long haul.
