Beginning investors don’t need to overcomplicate things for themselves when constructing their TFSA portfolios for the very first time. You don’t need to speculate with options, participate in industry booms, or play with cryptocurrencies. What you do need is the temperament to act like a contrarian so that you can take advantage of the bargains that come along when stocks are out of favour and most investors view them as money-losing instruments.
Undoubtedly, many folks who missed buying a few months ago are waiting for the next inevitable correction. Indeed, there are still bears out there, but they’re starting to look disoriented, as the market continues moving higher.
As a TFSA investor, try not to wait for a correction, but do be prepared. That means investing in the value you see today while being ready for even better bargains tomorrow!
In this piece, we’ll look at three simple stocks that could make all the difference for your TFSA over the next 20 to 25 years.
Magna International (TSX:MG) is a Canadian auto-parts maker that’s felt the full force of the economic headwinds. Undoubtedly, auto tends to boom in good times, only to go bust when the macro picture gets a bit uglier. These days, many are thinking of that recession. It may or may not be avoidable at this juncture. Regardless, it seems like there’s already so much recession risk built into today’s share price. The stock goes for $72 and change.
That’s down a whopping 40% from its peak back in 2021. It’s been quite the fall, and though nobody knows when the bottom is in, I do view the dip as more of a buy than a sell if you’re committing to staying invested for at least a decade.
At the end of the day, Magna builds essential components for modern automobiles. And once the economy is booming again, I’d look for MG stock to come surging back, perhaps as fast as it crumbled last year!
The stock boasts a nice 3.31% dividend yield at writing.
Restaurant Brands International
Up next, we’ve got a fast-food company Restaurant Brands International (TSX:QSR), which seems to have had the secret sauce to gains this year! The stock is up nearly 14% year to date. And no, QSR isn’t an AI-driven tech stock by any means.
What it is, I believe, is a well-run fast-food company that could do well in a recession year. Whether 2023 or 2024 sees the economy pullback a bit, I view QSR stock as a terrific TFSA bet, regardless of what the macro ends up doing.
The company’s transformation has already worked its way into the results over at Burger King. Looking ahead, I’d look for coming quarters to be beefed up (please forgive the pun) further. Indeed, QSR stock is above $100 per share now. With new highs in sight and some nice momentum riding behind it, I view the play as a potential core holding to any TFSA fund. It has been a long time coming, but QSR and its top restaurant trio are back!
The stock sports a 2.99% dividend yield at writing.