TFSA accounts represent one of, if not the single best option for Canadian investors to stash away contributions and let them grow.
And for those Canadian investors who have a $21,000 cushion to invest in their TFSA, there are plenty of great options to consider.
Here’s a trio of top picks with tasty yields from different segments of the market that you will regret not investing in.
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Pick 1: The telecom
Canada’s big telecom stocks represent an excellent long-term investment option for those seeking long-term growth and juicy dividends. And the telecom for investors to consider right now is Telus (TSX:T)
Telus offers the usual complement of subscriber-based services to customers across Canada. That includes wireline, wireless, TV and internet services.
Those segments are incredibly defensive, which translates into a major advantage for prospective Canadian investors.
That’s not all. Thanks to the sheer necessity they provide, those services also generate a stable and recurring revenue stream that allows Telus to invest in growth and pay out a handsome dividend.
In terms of growth, that includes investing in upgrading infrastructure and expanding its coverage. The company is also investing in AI data centre investments. In fact, Telus has earmarked over $50 billion through 2029 on those projects.
Turning to dividends, Telus really impresses Canadian investors. The company offers a tasty quarterly dividend carrying a yield of 8.2% making it a top-paying option.
Telus has also provided investors with annual or better upticks to that dividend for two decades without fail.
Pick 2: The big bank
It would be nearly impossible to compile a list of great stocks for Canadian investors to pad their TFSAs without mentioning a big bank stock.
And that big bank stock to consider right now is Toronto-Dominion Bank (TSX:TD).
TD is the second-largest of the big banks with a massive presence on both sides of the border. In Canada, TD’s stable branch network provides a source of revenue that allows it to invest in growth and pay out a tasty quarterly dividend.
The U.S. is TD’s primary growth market. In the years following the Great Recession, TD stitched together an impressive network on the East Coast. Today, that branch network stretches from Maine to Florida and provides a growing source of revenue for the bank.
Turning to dividends, TD has paid out dividends for over 160 years without fail. That’s an incredible amount of time and speaks to the bank’s stability for Canadian investors.
As of the time of writing, TD offers a respectable 3.7% yield, making it a solid option for any portfolio.
Pick 3: The utility
One final pick for Canadian investors looking to invest in their TFSA is Canadian Utilities (TSX:CU). Canadian Utilities is one of the best-known utility stocks with a growing portfolio of operations domestically and internationally.
Outside of Canada, Canadian Utilities has operations in Mexico, Australia, Chile, and Puerto Rico. Like its domestic operations, those facilities provide a recurring, regulated and stable source of revenue for the company.
That stable revenue stream allows Canadian Utilities to invest in growth and continue to pay out its generous quarterly dividend. As of the time of writing, that dividend carries a 4.3% yield.
More importantly, Canadian Utilities has provided investors with tasty upticks to that dividend for an incredible 53 consecutive years without fail.
That makes Canadian Utilities one of just two Dividend Kings in Canada, and the longest streak of any company.
Final thoughts for Canadian investors
No stock is without risk. That’s why a well-diversified portfolio is a must for Canadian investors. That’s also why this trio of stocks is so appealing.
Telus provides the stability, TD provides the financial strength, and Canadian Utilities is on defence. It’s the perfect mix of investments that can power your portfolio to long-term greatness.
Buy them, hold them, and watch your portfolio (and future income) grow. And keep in mind that if those investments are in a TFSA, that growth comes tax-free.
