It’s tough to know for sure how much the average Albertan has in their TFSA at the age of 45. Seeing as Alberta tends to skew slightly above the national averages, I wouldn’t be all too surprised if the typical 45-year-old Albertan’s TFSA were a few thousand dollars higher than the national average.
Any way you look at it, though, there’s still ample unused room in the TFSA, and given those in their 40s are still quite heavy in risk-free securities (that includes GICs) and cash, I’d say that investing in the right areas for one’s long-term goals is the first move. The second would be to close the gap and make use of the unused room because, at the end of the day, the TFSA is one of the more powerful tax-free investing accounts out there, even though it’s referred to as a “savings account.” Of course, having unused TFSA room isn’t unique to Albertans, but, in my view, it’s the one major thing holding back a lot of Canadians’ TFSAs.
In any case, this piece will have a closer look at some dividend-paying value stocks that I believe would make a great fit for your average Albertan’s TFSA portfolio. A 45-year-old would have about 20 years before they hit that expected retirement date. And in Albertan fashion, this piece will look at two enticing energy names that I think could continue to be leaders for the broad TSX Index in the second half and going into 2027.
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Canadian Natural Resources
Shares of Canadian Natural Resources (TSX: CNQ) might be a bit more sensitive to moves in oil prices, but amid geopolitical uncertainties and a reheating of the war between the U.S. and Iran, CNQ stands out as a more worthy hedge against a return of US$100 per-barrel oil.
Of course, there are steadier integrated names to look to for those who don’t want to play the price of oil over the medium term. In any case, though, I find CNQ stock to be a fantastic deal at 12 times trailing price-to-earnings (P/E), especially as concerns about higher transport costs and the impact on inflation moving forward start hogging headlines again. The $134.4 billion energy colossus is quite the force in the Albertan oil sands.
And as the firm makes good use of its rising cash flows to spoil investors with dividend increases, as well as improving the state of the balance sheet while investing in operations, I like where the firm is headed over the long haul. Regarding the situation in the Strait of Hormuz, CNQ stock stands out as a great hedge if you expect another shock to rattle markets in the coming weeks. Either way, I suspect investors will come for the hedging benefits and stay for that growing 4%-yielding dividend.
Suncor Energy
Suncor Energy (TSX: SU) is a fast-moving integrated energy juggernaut that’s up more than 71% in the past two years. With significant momentum behind it and improved execution across the stream (upstream and downstream), there are few reasons, in my view, to ring the register on the name, especially given the structural improvements made behind the scenes.
You’ll pay a bit more, with shares going for 17.3 times trailing P/E for a lower 2.7% yield, but, at the end of the day, Suncor’s starting to operate at a high level as past turnaround efforts finally pay big dividends. For investors who want a solid integrated player, it’s tough to look past the name, especially now that it’s really gaining ground versus some of its mature rivals in the oil patch.
