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The annual tax-exempt savings account (TFSA) contribution amount rose to $6,500 this year. That brought the cumulative contribution space to $88,000. Today I want to look at four of the top TSX stocks to hold in your TFSA for the rest of this decade and beyond. Let’s jump in.
That’s why you should own this dividend heavyweight in your TFSA in the 2020s
Enbridge (TSX:ENB) is the largest energy infrastructure company in North America. Shares of this top TSX energy stock are down 6.9% year-on-year through the close on March 14. The stock is down 1.9% so far in 2023.
This company released its fourth-quarter and full-year 2022 results on February 10, 2023. Enbridge reported full-year adjusted earnings of $5.7 billion, or $2.81 per common share — up from $5.6 billion US dollars, or $2.74 per common share. in fiscal year 2021. EBITDA stands for earnings before interest, taxes, depreciation and amortization and is intended to provide a clearer picture of a company’s profitability. Enbridge reported Adjusted EBITDA of $15.5 billion, up from $14.0 billion a year earlier.
Shares of this TSX stock are trading at neutral value levels at the time of writing. TFSA investors can also count on its quarterly dividend of $0.887 per share. That equates to a tasty 6.7% yield.
Don’t sleep on this TSX stock with huge potential!
good (TSX:GSY) is a Mississauga-based company that provides non-premium leasing and lending services to Canadian consumers under the easyhome, easyfinancial and LendCare brands. High interest rates have put tremendous pressure on Canadian consumers, prompting more citizens to explore alternative lending services. This TSX stock is down 11% year-to-date.
In its latest fiscal 2022 results, goeasy reported fourth-quarter loan growth of 54% to $206 million. Meanwhile, its total loan portfolio climbed 38% to $2.79 billion. goeasy posted 11% annual growth in adjusted earnings per share (EPS) to $11.55.
TFSA investors should be excited about goeasy’s growth potential and its impressive streak of dividend growth. In fact, goeasy qualifies as a Dividend Aristocrat, having delivered nine straight years of dividend increases. This TSX stock also has a cheap price-to-earnings (P/E) ratio of 13.
This dividend stock is a great choice for your TFSA
Cogeco communication (TSX:CCA) is another reliable TSX stock with dividends that I would place in a TFSA over the long term. This Montreal-based communications company serves customers in Canada and the United States. Its shares are down 39% year over year.
In the fourth quarter of 2022, Cogeco reported revenue growth of 12% to $725 million. Additionally, Adjusted EBITDA increased 17% year over year to $347 million. For the full year, Cogeco reported revenue and Adjusted EBITDA growth of 15%.
The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a specific security. Cogeco last had an RSI of 21, putting the stock in technically oversold territory. This TSX stock is trading at a very attractive P/E ratio of 6.6 at the time of writing. Better yet, it offers a quarterly dividend of $0.776 per share, which translates to a strong 5% yield.
Another exciting TSX stock to own for the long term
ATS (TSX:ATS) is the fourth and final TSX stock I would grab in our hypothetical TFSA today. Based in Cambridge, this company provides automation solutions to a global customer base. Its shares are up 29% so far in 2023.
The company announced its results for the third quarter of fiscal 2023 on February 9. In the third quarter of fiscal 2023, it reported revenue growth of 18% to $647 million. Meanwhile, adjusted basic earnings per share were flat at $0.52. For the full year, ATS had revenue growth of 16% to $1.84 billion. Orders increased to $2.51 billion compared to $1.81 billion at the end of fiscal 2022.
This exciting TSX stock is poised for strong earnings growth going forward. Investors should seek exposure to automation-focused stocks.
