Some days, it seems like retirement will never come. Other days, it seems like it’s approaching way too quickly. No matter how you feel about it, I’m sure you can agree that you would like a stress-free retirement without financial worries. This is why it makes sense to make full use of your Tax-Free Savings Account (TFSA) contribution limit. Here are three TFSA stocks to help fund your retirement.
BCE: Canada’s telecom giant and top TFSA stock
BCE (TSX:BCE) is Canada’s largest telecom services company. It boasts an unmatched network, with the fastest and farthest-reaching broadband internet connection. It’s also backed by its rapidly expanding fibre optic network that continues to strengthen BCE’s competitive advantage.
Today, BCE is yielding 6.52%. This, along with its leading position in the defensive telecom industry, makes it a top TFSA stock. But let’s look at BCE’s dividend history to really get a sense of what we’re getting with BCE stock. Since 2000, BCE’s dividend has grown at a compound annual growth rate (CAGR) of 6.22%. Today, the dividend is 223% higher than in 2000. Also, BCE stock has doubled.
BCE’s history of long-term, steady growth and predictability makes it a top TFSA stock for a stress-free retirement.
Fortis: Predictably making retirement easy
Fortis (TSX:FTS) is a $29 billion utility giant with a diverse geographic footprint and asset mix. There are a few characteristics that make Fortis a top TFSA stock. The first is its defensive business. Simply put, utilities are safe and predictable.
An illustration of the safety that this profile can give a stock can be found in Fortis’s dividend. Fortis has 49-year history of dividend growth. Also, in the last 28 years, Fortis’s dividend has grown at a compound annual growth rate of 6.2% from $0.42 per share to the current $2.26 per share. It’s almost 440% higher today than it was back in 1995. The latest dividend increase was a 5.6% increase this year, and the company expects dividend growth in the range of +4% to +6% until 2027.
So, with this, we can see the type of safety and peace of mind that Fortis can offer you in your retirement. We can also see the reliable and secure income that can help fund our retirement.
TD Bank
As one of Canada’s top banks with a sizable position in the U.S. market, Toronto-Dominion Bank (TSX:TD) has the benefit of a bright and resilient history. It has, in fact, survived many crises over the years and only come out stronger. For example, the financial crisis of 2008 was a real zinger. However, TD Bank stock is currently trading 330% higher than those days. Also, TD Bank has given its shareholders consistent, growing dividends.
In fact, since that time, TD Bank’s dividend has grown almost 240%. That’s a CAGR of 8.4%. This is an example of a company that has been able to thrive in the long run, no matter the obstacles that are thrown its way. It gives me confidence that TD Bank stock should be part of a TFSA in order to help deliver a stress-free retirement.
