The Motley Fool

TFSA Investors: 5 Hot Dividend Stocks to Buy in 2019

Dividend stocks and TFSA make a killer combination

The Tax-Free Savings Account (TFSA) contribution limit for 2019 is a good $6,000. For Canadians, there isn’t a better time than now to sock away funds into TFSAs by buying dividend-paying stocks of fundamentally strong companies that are committed to growing dividends in not just 2019 but for years to come.

Because the dividends earned from stocks in your TFSA account are not taxable, you can reinvest them and multiply your returns manifold in the long run. That makes dividend stocks in TFSAs one of the best tools for Canadians to build a corpus for life’s major goals such as retirement. Here are five such hot dividend stocks that deserve a spot in your TFSA 2019.

Japanese Billionaire’s Prediction Will Give You Goosebumps

Renowned Japanese Billionaire is sounding the alarm on what could be a trillion-dollar technology. In fact, he’s now preparing a $100B “war chest” to invest entirely in this “terrifying” new technology, which could spell huge profits for investors.

And if he’s right, early investors in this super-trend could become rich. Because this potentially $19 TRILLION market….is still being ignored by most ordinary investors.

Click Here to Learn More

1. Canadian National Railway Company (TSX:CNR)(NYSE:CNI)

Railroads are the backbone of an economy as they’re the preferred mode of transportation of goods over the long haul. Canadian National Railway is a leader in the industry, moving goods worth nearly $250 billion every year through its expansive network that spans three coasts and nearly 20,000 route-miles. No other railroad in the U.S. has such an extensive network.

Having made record capital investments into infrastructure to expand capacity in fiscal 2018, Canadian National Railway is poised to ride the next growth wave even as it remains cost efficient and strives to maintain one of the lowest operating ratios (a company’s total expenses relative to revenue) in the industry.

Shareholders can also expect higher dividends year after: Canadian National Railway has increased dividend every year since 1995, growing it at a solid compound annual rate of 16% since. The stock’s drop in 2018 presents an excellent opportunity for TFSA investors.

Attention Investors: On April 25th, 2018, something incredible happened…

The Motley Fool’s Iain Butler has just revealed an ultra rare “triple down” stock recommendation. And investors all over Canada are rushing to get in. Why? Because past “triple downs” have averaged over 100% returns, and sometimes as much as 440% returns (in just over two years’ time)…

To discover the brand-new “triple down” recommendation, simply click here. You’ll be whisked to a special investor memo prepared by The Motley Fool Canada. The only catch is you’ll have to hurry! This brand-new report could be withdrawn at any time.

Click here to preview the brand-new “triple down”!

2. Fortis Inc. (TSX:FTS)(NYSE:FTS)

Fortis is a typical defensive stock as it’s one of the largest utilities in North America, serving electricity and gas to nearly 3.3 million customers. Because utility is a highly regulated business and demand for essentials like electricity remains resilient even during a downturn, Fortis has been able to generate steady cash flows over the years and increase dividends every year for 45 consecutive years now.

Fortis recently announced a new growth plan for 2019-2023, with key financial targets as follows:

  • 6-7% rate base growth (base rate is the value of a property on which a utility earns income at a predetermined regulated rate).
  • $17.5 billion capital expenditure outlay, the bulk of which will be funded through internally generated cash from operations.
  • 6% growth in annual dividend.

That dividend growth is of particular significance to TFSA investors as it can compound returns, especially when combined with Fortis stock’s dividend yield of nearly 4%.

This Stock Could Be Like Buying Netflix for $1.87

If you’ve ever had to spend any time on the phone with your cable company…you won’t be surprised to hear that Canadians are abandoning cable in droves.

And it’s setting up an enormous opportunity for investors smart enough to act now.

And today is your chance to find out all about this remarkable moment in media history… Because some investors believe one tiny company is poised to profit no matter who wins.

Could this stock be the next Netflix? Click here to Learn More

3. Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP)

Brookfield Infrastructure stock has proved to be a solid investment since it was spun off from Brookfield Asset Management in 2008: It grew dividends at a compound annual rate of 11% and generated a jaw-dropping 600% in total returns since.

While past performance doesn’t guarantee future returns, Brookfield has what it takes to make TFSA investors richer. The company can earn steady revenue and cash flows as pay regular dividends as it primarily operates assets in essential sectors like utility, energy, and transportation — think power plants, toll roads, gas pipelines, telecom towers, and data centers. Management is also adept at selling mature assets and reinvesting the proceeds in ones with greater potential.

Brookfield aims to pay out 65% of every dollar earned in funds from operation as dividend and increase dividend annually by 5-9% in the long term. With the stock yielding 5.4% after losing significant ground in 2018, TFSA investors can’t miss the opportunity.

Motley Fool Canada Issues Rare “Double Down” Buy Alert

Iain Butler has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his almost 20 years as a professional investor.

This is your chance to get in early on of what could prove to be a very special investment recommendation. Think about how many investing trends you’ve missed out on, even though you knew they were going to be big. Don’t let that happen again.

Simply click here to get started and access our secure sign-up page.


BCE, a leading broadband network company, is also a top dividend payer. Wireless data is where all the action should be in coming years, and BCE already seems to be making the most of the opportunities: It recently reported its best-ever third quarter in terms of wireless subscriber additions.

BCE generated nearly as much in free cash flow (FCF) as net income in the trailing twelve months, which reflects its financial fortitude. With nearly 50% of its ongoing direct fibre-optic expansion nearing completion, BCE’s capital expenditures will likely remain stable or even taper beyond 2019, thereby freeing up more cash for shareholders.

BCE’s dividends have nearly doubled since 2008. With the company set to grow FCF by 3-7% in fiscal 2018 and management targeting 65-75% FCF payout, BCE’s streak of dividend increases should continue. Factor in a dividend yield of 5.6%, and BCE makes a top TFSA stock pick.

Have you heard about Amazon’s secretive “Project Vesta”?

Few people have… yet some of the greatest minds in the world believe this innovative technology could change the world.

Amazon doesn’t want anyone to know about this top-secret project, but there’s something even Amazon doesn’t know…

One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.

But you’ll need to hurry if you want to pick up this TSX stock before its name is on everyone’s lips.

To learn more about this exciting technology and dark horse TSX stock before it’s too late, click here now.

5. Toronto-Dominion Bank (TSX:TD)(NYSE:TD)

Toronto-Dominion Bank and its subsidiaries, collectively known as TD Bank Group (TD), serves nearly 25 million customers worldwide through a broad array of financial products and services, including but not limited to retail and business banking, financing, asset management, insurance, and wholesale banking.

Today, TD is the fifth largest bank in North America in terms of total assets. In the medium term, TD expects to grow its adjusted earnings per share by 7-10%, which should also ring in regular dividend increases.

TD has grown its dividends at a compound rate of 11% since 1998, proving that even companies in economy-sensitive sectors like banking can earn patient investors massive returns in the long run. That also means TFSA investors can look beyond potential near-term headwinds like a slowing housing market and own this 4% yielding solid dividend growth stock.

You might be missing out on one of the biggest opportunities in Canadian investing history…

Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

Besides making key partnerships with Facebook and Amazon, they’ve just made a game-changing deal with the Ontario government.

One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.

This is the company we think you should strongly consider having in your portfolio if you want to position yourself wisely for the coming marijuana boom.

Learn More About This TSX Stock Now

It’s time to act, TFSA investors!

In a TFSA, not only the dividends but any capital gains you eventually earn on your stocks are also tax-free. Dividend-paying stocks have historically outperformed their non-paying counterparts, so any smart investor would stock up a TFSA account with more of the former to maximize returns.

From that standpoint, it’s easy to see why the five stocks I discussed today are a great fit for a TFSA account: They’re all dividend growth stocks with a strong track record and returns potential. So without wasting any time, start investing right away to put $6,000 (or even more if you didn’t max your previous years’ TFSA contribution) to good use.

Fool contributor Neha Chamaria has no position in any of the stocks mentioned.

Get a Top TSX Stock Pick for 2019 – for FREE

Iain Butler and his team of analysts are giving away one of their top TSX stock picks for 2019 for FREE – for a limited time.

They’ve already helped Stock Advisor Canada members outperform the market by 8X in 2018, but now they’re laser-focused on helping investors in 2019 and beyond.

Click here to discover what could be your top-performing stock for 2019

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.