The Tax Free Savings Account (TFSA) was meant for long-term investing. But when it comes to buying for a lifetime, where should Canadians go? Some of the best investment options are those that have already demonstrated a long-term growth strategy. So let’s look at some that are ideal for long-term investors.
Granite REIT
Starting with Granite REIT (TSX:GRT.UN), this real estate investment trust (REIT) specializes in industrial and logistics properties – a sector that’s been thriving with the rise of e-commerce. Granite’s recent earnings show solid revenue growth, with a year-over-year increase of 7.6% and a profit margin of 42.5%, indicating strong profitability. Its dividends are appealing too, with a yield over 4%. This is rare in the REIT space. The combination of growth, income, and industrial focus makes Granite REIT an excellent choice for those seeking passive income with real estate exposure in their TFSA.
Granite REIT’s recent performance further supports its reputation as a strong dividend stock. With a five-year average dividend yield of 4% and an ex-dividend date coming up, Granite provides investors with reliable income. It also maintains a payout ratio of 89.7%, indicating a commitment to returning value to shareholders. For a TFSA, these dividend payments are tax-free, making Granite a sound pick for long-term income.
Extendicare
Extendicare (TSX:EXE) is a great option for those interested in healthcare, specifically senior care – an industry with long-term demand due to Canada’s aging population. In its most recent quarter, Extendicare reported impressive revenue growth of 13.3% year-over-year, and a forward dividend yield of 5.3% – a solid income source for TFSA investors. Although the healthcare sector has challenges, Extendicare’s focus on senior care aligns well with demographic trends, thus making it a resilient stock to hold long term.
Extendicare, while not without its challenges, has shown resilience. This highlights its effective management, even in the face of increased demand for healthcare services. With a five-year average dividend yield of 6.9%, Extendicare is an income powerhouse for TFSAs, especially as Canada’s aging population continues to drive demand for senior care.
goeasy
Goeasy (TSX:GSY) stands out for those who seek growth and income combined. This alternative lender has demonstrated consistent earnings growth, with quarterly earnings increasing 17.7% year-over-year. GSY’s dividend is also attractive, with a yield of around 2.6%, backed by a low payout ratio of 27.7%. With goeasy’s history of solid performance and innovative loan products, this stock could be a growth engine for your TFSA, especially with its focus on expanding consumer credit services in Canada.
Goeasy has proven itself with a 42.5% stock price range in the past year and a high ROE of 25.3%. Its high beta of 1.9 suggests potential for price movement – ideal for investors comfortable with a bit of volatility in exchange for growth. GSY’s strategic expansion into new markets and consumer lending make it a prime choice for those looking to maximize TFSA growth while enjoying quarterly dividends.
Manulife
Manulife Financial (TSX:MFC), one of Canada’s financial giants, is another compelling choice. Manulife’s recent earnings show stable quarterly revenue growth of 12.8%, highlighting its resilience in a competitive sector. Its trailing Price/Earnings (P/E) ratio of 17.7 and forward dividend yield of 3.9% add to its appeal as a stable, income-generating stock. For TFSA investors, Manulife offers exposure to insurance and wealth management – industries that benefit from economic recovery and population growth.
Manulife’s extensive financial services portfolio, combined with a low debt-to-equity ratio and strong institutional backing, positions it well for future growth. The company’s robust quarterly revenue growth and consistent dividend history underscore its stability – an essential factor for TFSA investors looking to hold onto stocks long-term without excessive volatility. With a 52-week range showing a steady climb, Manulife can be a pillar of financial strength in a diversified TFSA.
