3 Stocks I’d Buy With a $6,500 TFSA Contribution

TFSA investors should leverage their $6,500 TFSA contribution limit to buy stocks like goeasy to generate tax-free capital gains and dividend income.

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The slowdown in inflation and an anticipated stabilization in interest rates have boosted Canadian stocks. Despite the recent gains, several fundamentally strong TSX stocks are still trading at attractive price points, making them a compelling investment near the current levels. Further, investors should leverage their Tax-Free Savings Account, or TFSA, contribution limit to these buy stocks as it will enable them to generate tax-free capital gains and dividend income. 

Before I discuss stocks, investors should note that the TFSA contribution limit for 2023 has been raised to $6,500 from $6,000 in 2022. Additionally, the cumulative contribution room has now reached $88,000. With this backdrop, let’s look at three stocks I’d buy with a $6,500 TFSA contribution limit. 


There are multiple reasons why I am bullish on goeasy (TSX:GSY). The company is a prominent player in Canada’s non-prime lending market and provides unsecured and secured loans. What supports my optimistic outlook is its ability to consistently deliver stellar growth. To illustrate, goeasy’s top line has increased at a CAGR (compound annual growth rate) of 17.7% since 2012. Impressively, its bottom line grew at a CAGR of 29.5% during the same period. 

Investors should note that goeasy continued to deliver solid growth in 2023, despite the challenging macro environment. The company generated $590 million in revenue during the first half of the year, reflecting a remarkable 22% year-over-year increase. Moreover, goeasy’s profitability improved by 15% year over year during the same period. goeasy continues to benefit from higher loan originations led by growth across its products and customer acquisition channels. 

Looking ahead, its growing loan portfolio will drive its revenue. Moreover, steady credit and payment performance and goeasy’s improving efficiency ratio will cushion its bottom line. Beyond potential capital gains, goeasy’s stock is set to boost returns for TFSA investors through increased dividend payments. While goeasy is a compelling stock for both growth and income investors, it is trading at the next 12-month price-to-earnings multiple of 7.3. This makes it attractive on the valuation front, considering the company’s double-digit earnings growth and a dividend yield of 3.51%.        


Dollarama (TSX:DOL) is another stock to buy with a $6,500 TFSA contribution limit. The value-price retailer offers solid growth and income, regardless of the economic and market situation. The company provides products at multiple low fixed-price points, which makes it a go-to place for consumers looking for value deals. In addition, its focus on direct sourcing and driving efficiency has led the company to deliver stellar sales and earnings growth for several years. 

Thanks to its low-risk business model and ability to grow traffic, Dollarama is expected to deliver solid sales and earnings growth, which will support the uptrend in its stock price. Further, it will continue to increase its dividend and enhance its shareholders’ returns. 

Overall, its broad product range, value pricing, strong brand recognition, growing store base, and capital-efficient business model position it well to deliver solid growth in the coming years. 


Shares of the luxury apparel design house Aritzia (TSX:ATZ) look compelling to buy near the current levels. The stock has lost over 53% of its value year to date. Despite the correction in its price, the company’s fundamentals remain strong and support my bullish outlook. 

The company is focusing on adding newness to its offerings and faces easier year-over-year comparisons. This will accelerate its growth rate. In addition, Aritzia is growing its footprint with new boutique openings, which will support its top- and bottom-line growth. 

Overall, its focus on bringing newness to its collection, new boutique openings, selective pricing actions, cost improvements, and ongoing strength in the e-commerce channel will drive Aritzia’s sales and earnings in the coming years. Moreover, its stock trades at a discounted valuation, providing a solid entry point for TFSA investors. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy.

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