TFSA Investors: Where to Invest $7,000 in 2024

If you want to make a perfect portfolio, start with the basics. These three are an excellent start based on future growth and valuations.

| More on:
Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks

Image source: Getty Images.

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.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mullen Group. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Buy 32 Shares in This Glorious Dividend Stock and Create $1,074.88 in Passive Income

This dividend stock is also a growth stock you're going to want on your side over the next year and…

Read more »

Mature financial advisor showing report to young couple for their investment
Energy Stocks

New Study Shows 36% of Couples Hide Spending From Partner, And It’s a Pressure Point

Having the hard talk? It can literally pay to do so. Here's how to stop holding out on your partner…

Read more »

Stocks for Beginners

Value Investors: Are You Buying and Holding Forever? Think Again

Value stocks are great, but if you don't have a goal in mind that stock can quickly turn from value…

Read more »

young woman celebrating a victory while working with mobile phone in the office
Stocks for Beginners

2 Stocks Under $50 New Investors Can Buy Confidently

Are you new investor looking to start small before buying stocks trading in hundreds and thousands? You could consider these…

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

3 Undervalued Software Stocks Set to Jump in 2024

These software stocks are overdue for a recovery, and that should certainly happen as they move back to profit in…

Read more »

Two hands holding champagne glasses toasting each other with Paris in the background
Dividend Stocks

Planning a Wedding? Here’s How to Actually Make Money on the Big Day

Inflation, interest rates, it all adds up when planning a wedding. So how can you ask for cash, keep costs…

Read more »

Caution, careful
Stocks for Beginners

2 Threats to the Market Rally to Keep a Close Eye On

There are two threats that could possibly trigger another selloff, so be sure to watch for them in the near…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Stocks for Beginners

This Phenomenal Canadian Growth Stock Jumped 9% and Still Has More Upside

This Canadian stock surged after beating earning estimates, but there is even more room to run for this stock climbing…

Read more »