This weekend, I was working with my little girl, trying to build a tower. She likes building things but, of course, hasn’t realized yet that you need to create a great base if you want to make a castle.
All she cared about was that this was a castle for Elsa, which led to several meltdowns when Elsa’s castle continued to crumble. Insert face-palm emoji here.
Investing can be much of the same. All investors tend to focus on is making the most amount of money possible. But to do that, you need to create a base. A strong structure that will lead not just to wealth in the short term but ideally in the long run as well. This is why today, we’re going to help build a strong portfolio for your Tax-Free Savings Account (TFSA) for 2024 — one that won’t crumble as it’s built higher.
Your strong base
First, let’s look at the strong base. For this, you’re going to need a stock with a straightforward business model and a long history of superb success. This is why I would consider railway company Canadian National Railway (TSX: CNR).
This railway company remains a giant in the industry, with a market cap currently at $109 billion as of writing. In fact, the company is part of a duopoly of railway systems in Canada, which allows for it to remain stable and strong, while still finding growth opportunities.
After a difficult year in 2023, with lower traffic, higher operating costs, and guidance cuts, investors can look forward to an improved situation in 2024, especially as the stock doesn’t have crippling debt on hand from a major purchase. Instead, it can look towards the future of recovery, which already seems to be in motion.
As the economic backdrop improves and there is an acceleration of traffic in the spring and summer, we should see CNR stock improve dramatically. So, this is certainly a strong choice to start with, as the company’s growth and profit don’t just remain strong but look to improve.
Frame your castle
Now that you have a strong base, it’s time to start building. For this, you’re going to want a company that provides your “castle” with high growth, framing your base with towers all around as a means of protection and growth opportunities.
To do this, I would consider a company such as Thomson Reuters (TSX: TRI). The $92 billion business information services company currently offers a strong opportunity for investors. This comes from consolidated organic revenue growth for the future, driven by both merger and acquisition activity, and artificial intelligence (AI) monetization.
These opportunities would create quick gains for the stock, which means today’s share price offers incredible value. Adding AI to its portfolio is a big win that can create superb long-term growth opportunities. So, this should certainly offer you some protection and growth throughout 2024.
Dress it up
A castle is just a castle without items to fill it in. And that’s where investing in stocks that provide some growth and income can be an excellent option. The more income you receive, the more you can dress up your castle — or portfolio — with the items that make it your portfolio.
That’s why the last of the stocks I would potentially consider is Mullen Group (TSX: MTL). The $1.33 billion trucking and logistics company is considered to be trading at “trough earnings,” according to analysts. It offers an attractive option for those seeking growth through acquisitions while also seeing an increase from the rebounding trucking sector.
The stock continues to trade at a discount due to current weakness in the trucking space. Therefore, it offers a higher-than-usual 4.98% dividend yield as of writing for investors to consider as well. So, with valuations at 10-year lows, it’s certainly another stock to consider as the market improves in 2024. With all that in mind, you’ll have the strongest castle around.
