A Tax-Free Savings Account (TFSA) could be an excellent place to stash a few discounted Canadian stocks.
The beauty of the TFSA is that any gains earned on investments held within the account are not taxed. In addition, withdrawals can be made at any point in time, completely tax-free.
For investors with time on their side, the possibility of earning tax-free growth is an incredibly good reason to be loading up on stocks in a TFSA.
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How much money can you have invested in your TFSA?
It’s important to realize that there are TFSA contribution limitations for Canadians. In 2024, the annual contribution limit is $7,000. However, the annual limit has changed several times since the account was introduced to Canadians in 2009.
What’s also important to know is that unused contributions can be carried over from year to year. So, even if you’re behind on your TFSA contributions, there’s no need to worry. You’ve got plenty of time to make up for those lost years.
For anyone aged 18 years or older in 2009, their total TFSA contribution limit today is a whopping $95,000.
With that in mind, I’ve reviewed two discounted Canadian stocks that have the potential to be massive growth drivers in the coming decades. Don’t miss your chance to load up on these two companies at bargain prices.
Stock #1: goeasy
At this rate, goeasy (TSX: GSY) won’t be trading at a discount for much longer. The consumer-facing financial services provider has seen its stock price jump 30% over the past 12 months, putting the growth stock down just 20% from all-time highs now.
It’s surprising to see such a dependable market beater often fall under the radar for Canadian investors. Even with the discount from all-time highs, shares of goeasy are still up more than 150% over the past five years, easily outpacing the returns of the Canadian stock market.
The surge in interest rates understandably hurt demand for goeasy. But with rate cuts now in effect, we’ve already begun seeing the stock react positively.
goeasy doesn’t often go on sale like this. If you’re looking for a steady market-beater, this is the company for you.
Stock #2: Brookfield Renewable Partners
Now’s an excellent time for long-term renewable energy bulls to be putting money to work in the beaten-down sector. Leaders across the space have been on the decline since early 2021, providing plenty of discounts to take advantage of.
In the short term, there could be more pain for renewable energy investors. Over the long term, though, there’s no denying the growth potential in the rise of renewable energy consumption.
At a current market cap of more than $20 billion, Brookfield Renewable Partners (TSX: BEP.UN) is not only a Canadian leader but a global one, too. In addition to owning a wide-ranging portfolio of renewable energy assets, the company also boasts an international presence.
Excluding dividends, shares are down more than 40% from all-time highs that were last set in 2021. One silver lining is that the dividend yield has shot up to above 5% with the stock’s decline in recent years.
If you’ve got time on your side and are bullish on the rise of renewable energy consumption, now is not the time to be on the sidelines.
