Investing in Your TFSA? Check Out These Popular Canadian Companies

Are you looking for stocks to buy in your TFSA? Here are three popular Canadian companies!

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I firmly believe that all Canadians should be investing in a Tax-Free Savings Account (TFSA). As its name suggests, any gains generated in one of these accounts can be withdrawn tax free. That could help investors snowball their accounts much faster. Because Canadians are restricted in terms of how much money they can contribute into a TFSA, it’s important that you choose the right stocks to hold in one of these accounts. In this article, I’ll discuss three popular Canadian companies you should consider today.

This is one of my favourite stocks

Shopify (TSX:SHOP) remains one of my favourite stocks to suggest buying in a TFSA. This is one of the largest companies within the rapidly growing e-commerce industry. It provides merchants of all sizes with a platform and many of the tools necessary to operate online stores. Because of its large share of the global e-commerce industry, I believe Shopify could continue to grow strongly, as this industry continues to increase its penetration of the overall retail space.

During its most recent earnings presentation, Shopify reported a 26% year-over-year increase in its fourth-quarter (Q4) revenue. Those results helped investors regain confidence in this stock. As of this writing, Shopify stock has gained more than 30% this year. While that gain may sound very impressive, it’s important to note that Shopify stock still sits about 70% lower than its all-time highs. That presents a very attractive buying opportunity for bullish investors.

A top dividend stock for your portfolio

Shifting gears for a second, I think TFSA investors should consider buying shares of Bank of Nova Scotia (TSX:BNS). This is one of the largest Canadian banks in terms of revenue, market cap, and assets under management. What stands out about Bank of Nova Scotia, for me, is its focus on international growth. By focusing on geographic areas like the Pacific Alliance, Bank of Nova Scotia puts itself in an excellent position to grow its business over the coming years.

Bank of Nova Scotia is also an impressive company to consider in a TFSA because of its strong dividend history. This company has managed to pay shareholders a portion of its earnings in each of the past 190 years. As of this writing, Bank of Nova Scotia stock offers investors a forward dividend yield of 6.11%. If you choose to build a sizeable position in this stock, in your TFSA, you could be coming away with a solid source of tax-free passive income.

Another great company to buy in a TFSA

Finally, I think Canadian National Railway (TSX:CNR) deserves a spot in your TFSA. It operates nearly 33,000 kilometres of track that spans from British Columbia to Nova Scotia, making Canadian National one of the largest railway companies in North America. That market dominance may be one reason that Canadian National is one of the most recognizable companies in the country today.

Canadian National is interesting because of its exceptional status as a Canadian Dividend Aristocrat. For those that are unfamiliar, companies need to raise dividend distributions for at least five consecutive years to achieve that title in Canada. Canadian National’s dividend-growth streak far exceeds that minimum requirement, as the company has grown its dividend in each of the past 26 years. That makes it one of only 11 TSX-listed companies to maintain a dividend-growth streak of 25 years or longer.

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 Jed Lloren owns shares of Bank of Nova Scotia and Shopify.

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