2 TFSA Stocks to Buy Right Now With $7,000

These two dividend-paying Canadian stocks could help you grow your TFSA investments at a fast pace.

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If you want to see the money in your Tax-Free Savings Account (TFSA) grow at a fast pace, picking the right stocks is very important. While many high-flying growth stocks might catch your eye, TFSA investors, especially those with a low-risk appetite, might want to focus on investments that offer both stability and strong long-term growth potential. Even with an investment of as little as $7,000, you can build a solid foundation in your TFSA that not only grows your wealth over time but also provides a level of security against market volatility.

In this article, I’ll highlight two top dividend-paying stocks for TFSA investors that could be excellent buys right now with $7,000.

Capital Power stock

Utilities is one of the market sectors known for its stability and reliable dividends, making it an attractive choice for TFSA investors seeking lower-risk investments. Capital Power (TSX:CPX) could be a solid pick to consider within this sector right now. This Edmonton-headquartered firm primarily operates a range of energy generation facilities across Canada and the United States. Besides focusing on the expansion of its renewable energy projects, the company produces electricity from natural gas, coal, wind, solar, and biomass.

Capital Power currently has a market cap of $5.8 billion as its stock trades at $44.55 per share with nearly 18% year-to-date gains. At this market price, CPX stock also offers an attractive 5.6% annualized dividend yield and distributes its dividends every quarter.

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This strength in its long-term financial growth trends could be understood by the fact that Capital Power’s revenue soared by 207% in five years between 2018 and 2023 to $4.3 billion. More importantly, its earnings in these five years jumped by more than 400% to $6.04 per share.

As the company continues to focus on transitioning to cleaner energy with new quality acquisitions in the segment, its long-term growth outlook looks bright, which should help its share prices rise in the years to come.

Centerra Gold stock

Centerra Gold (TSX:CG) is another impressive stock TFSA investors might consider for diversification and growth with a $7,000 investment. This Toronto-based gold miner operates a variety of gold properties across North America and West Asia. After rallying by 22% year to date, CG stock currently trades at $9.61 per share with a market cap of $2.1 billion. The stock also offers a 2.9% annualized dividend yield at the current market price.

In the first half of 2024, Centerra Gold’s total revenue jumped 43.1% year over year to US$588.1 million. Besides higher sales, stronger commodity prices also helped the company post solid adjusted earnings of US$0.38 per share for this period, exceeding Bay Street analysts’ expectations of US$0.29 per share.

Recently, Centerra told investors that the feasibility study for restarting the Thompson Creek Mine is progressing well, with results expected later this summer. Similarly, the company expects to release an initial resource estimate for the Goldfield Project by the end of 2024 and a preliminary economic assessment for Mount Milligan in the first half of 2025.

Besides its stable financial position and strong growth trends, Centerra’s continued focus on production optimization programs and developmental projects could boost its profitability in the long run, making its stock attractive to buy now for TFSA investors and hold for the long term.

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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 Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Centerra Gold. The Motley Fool has a disclosure policy.

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