Canadian investors can consider holding a wide range of asset classes in a TFSA, or Tax-Free Savings Account, including stocks, bonds, mutual funds, Guaranteed Investment Certificates, and exchange-traded funds. Even in stocks, you can hold growth stocks, dividend stocks, or blue-chip stocks depending on factors such as your age, risk appetite, and investment horizon.
The TFSA contribution limit for 2024 has increased to $7,000 from $6,500 in 2023 and $6,000 in 2022. Here, I have identified two quality TSX stocks you can buy and hold in a TFSA right now.
Andlauer Healthcare Group stock
Valued at $1.6 billion by market cap, Andlauer Healthcare (TSX:AND) is a supply chain management company that offers an enterprise-facing platform of customized third-party logistics and specialized transportation solutions for the healthcare sector in Canada and the U.S.
It provides logistics and distribution services such as client and customer integration, transportation and inventory management, distribution and fulfillment, and warehousing solutions, among others.
In the fourth quarter (Q4) of 2023, Andlauer Healthcare reported revenue of $169 million, an increase of 2% year over year. Its operating income stood at $28 million, while adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) totalled $44.8 million, indicating a margin of 26.5%.
Andlauer emphasized each of its product lines, with the exception of the packaging solutions segment, which returned to revenue growth in Q4. It experienced a decline in the truckload business in the U.S., a market that is now showing signs of stabilizing, while its Canadian transportation network remains robust.
Analysts tracking Andlauer Healthcare expect top-line growth to accelerate to 4.9% year over year to $676 million in 2024. The company’s adjusted earnings are also forecast to expand to $1.78 per share, indicating a reasonable forward earnings multiple of 21.9 times.
The company also pays shareholders a quarterly dividend of $0.09 per share, and the payouts have almost doubled in the last four years.
Evertz Technologies stock
Valued at $1.13 billion by market cap, Evertz Technologies (TSX:ET) designs, manufactures, and distributes video and audio infrastructure solutions for the production, broadcast, and telecom markets. It is among the leading players in the Software-Defined Video Network technology segment.
In fiscal Q2 of 2024 (which ended in October), Evertz reported revenue of $130.7 million, an increase of 15% year over year. International sales were a key driver of top-line growth, more than doubling to $56.7 million in Q2.
Moreover, operating income rose 13% to $32.3 million, while net income grew 11% to $22.3 million in the quarter.
The company pays investors an annual dividend of $0.78 per share, translating to a tasty yield of 5.22%. These payouts have risen from $0.08 per share in 2009 to $0.195 per share in 2024.
In the last 10 years, after adjusting for dividends, the TSX stock has returned just 61% to shareholders, trailing the broader markets by a wide margin.
Currently, Evertz stock trades at 15.9 times forward earnings, which is quite cheap, given adjusted earnings are forecast to expand by 18.8% annually in the next five years. Analysts remain bullish and expect shares to surge roughly 14% in the next 12 months.
