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.
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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.
