TFSA: 4 Canadian Stocks to Buy and Hold Forever

This well-priced basket of Canadian stocks is perfect for a long-term TFSA investor.

| More on:
TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins

Source: Getty Images

Just because the Canadian stock market is near all-time highs doesn’t mean there aren’t any deals to be had. The TSX remains loaded with high-quality Canadian stocks trading at bargain prices. If you’re a long-term investor, now is not the time to be on the sidelines.

Maximizing returns in a TFSA

The Tax-Free Savings Account (TFSA) has its limitations. The annual contribution is far lower than that of the Registered Retirement Savings Plan (RRSP). However, withdrawals from a TFSA can be made anytime, completely tax-free. And, perhaps even more importantly, at least for the long-term investors, investment gains can compound and grow tax-free.

With that in mind, I’ve reviewed four top Canadian stocks that could be excellent long-term additions to a TFSA. All four stocks are also trading at a discount right now. 

Shopify

As it has been for many high-growth tech companies, it’s been a whirlwind ride for Shopify (TSX:SHOP)  in recent years. 

It wasn’t long ago that Shopify was Canada’s largest company, trading at a premium valuation. From a valuation perspective, shares today might not exactly be cheap in comparison to many other stocks on the TSX. However, I’d still argue that it’s priced as an opportunistic discount right now. With shares currently down more than 50% from all-time highs, there’s some value here to capture.

Shopify’s stock price has been gradually rising from its lows in 2022, making a case that the worst is behind it. 

If you can handle the volatility, now could be an excellent time to be investing in Shopify.

goeasy

goeasy (TSX:GSY) is another beaten-down growth stock that’s worth a look. Similar to Shopify, goeasy has been on the rise lately. 

The consumer-facing financial services provider is up about 60% over the past 12 months. That puts the growth stock down less than 20% from all-time highs. At the beginning of this year, that discount was close to 40%.

Don’t miss your chance to load up on this under-the-radar growth stock at a discounted price.

Bank of Montreal

There are more reasons than one to load up on Bank of Montreal (TSX:BMO) right now. Shares are trading at a discount, but the dividend alone is enough of a reason to have this $80 billion bank on your watch list.

Excluding dividends, shares of BMO have trailed the market’s returns this year and are down 20% from all-time highs.

One positive aspect of the recent pullback has been the increase in the dividend yield. At today’s stock price, the bank’s dividend yield is above 5%.

Brookfield Renewable Partners

It’s not difficult to find a discount in the renewable energy space. The sector is loaded with market leaders trading at huge discounts and sky-high dividend yields.

Brookfield Renewable Partners (TSX:BEP.UN) is a top choice if you’re looking for exposure to the beaten-down sector. The company has an international presence as well as a well-diversified portfolio of renewable energy investments. 

Shares have been on the decline since early 2021, as have many others in the sector. However, similar to BMO, the dividend yield has soared, and it is currently above 5%.

It may take time for the renewable energy sector to turn around, but there is plenty to be bullish about over the long term.

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 Nicholas Dobroruka has positions in Brookfield Renewable Partners and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Energy Stocks

grow dividends
Top TSX Stocks

Enbridge Stock Pays a Massive 7 Percent Dividend and Now is a Great Time to Buy  

Have you considered buying Enbridge stock lately? If not, you may want to buy this long-term gem to start earning…

Read more »

edit Woman calculating figures next to a laptop
Energy Stocks

Better Buy: Cameco Stock or Brookfield Renewable Stock?

If you're looking for a strong future, clean energy is the answer -- especially if you're looking at a strong…

Read more »

Dice engraved with the words buy and sell
Energy Stocks

Enbridge Stock: Buy, Sell, or Hold in July 2024?

While there might be reasons to sell it, there might be good reasons to hold onto or even buy more…

Read more »

Question marks in a pile
Energy Stocks

What’s Going on With Brookfield Renewable Stock?

BEP stock (TSX:BEP.UN) has been stagnating in share price, but there are still many catalysts that should drive the price…

Read more »

oil and gas pipeline
Energy Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

Sure, Enbridge (TSX:ENB) stock used to be a dividend giant, but I fear that's no longer the case. Yet this…

Read more »

Nuclear power station cooling tower
Energy Stocks

Should Investors Buy the Dip in Cameco Stock?

Cameco (TSX:CCO) stock recently experienced a slight dip, and with earnings around the corner, it might be time to pick…

Read more »

oil and gas pipeline
Energy Stocks

Pipeline to Prosperity: Invest in Enbridge and Pembina Stock

Here's why pipeline companies such as Enbridge and Pembina should be on the shopping list of income investors in July…

Read more »

Oil industry worker works in oilfield
Energy Stocks

If You Invested $1,000 in Headwater Exploration Stock 5 Years Ago, This Is How Much You’d Have Now

Here's why Headwater Exploration (TSX:HWX) stock has been an active investor's dream come true over the past half decade

Read more »