If you have used your tax -free savings account (TFSA) as a piggy bank, it’s time to think bigger. The TFSA is one of the best tools that Canadian investors have to impose on tax -free income that can last for decades. But to maximize the potential, you must keep investments that not only grow over time, but also pay you consistently. With that kind of basis, your TFSA can really become a power machine.
In this article I will talk about two high -quality Canadian dividend shares that can help you set up your TFSA for reliable income and wealth growth in the long term.
Brookfield Renewable partners shares
The first company on my list, Brookfield Renewable partners (TSX: Bep.Un), feeds its growth through clean energy, making it a strong match for TFSA investors. It operates one of the world’s largest listed renewable power platforms.
The share is currently being traded at $ 34.26 per share, making it a market capitalization of around $ 9.8 billion, and it currently offers a generous dividend yield of 5.9%.
Brookfield renewable shares are currently approximately 16% below 52 weeks high. That makes its dividend even more attractive, because investors can lock a higher yield at today’s level.
In the second quarter, Brookfield’s funds of operations climbed 10% JoJ (year-on-year) to a record of US $ 371 million due to a stronger hydropower production in North America and Colombia, in addition to a rebound in the global demand for nuclear energy by its Westinghouse company.
What makes Brookfield even more attractive for TFSA investors, is the long-term growth strategy. The company recently signed a historic deal AlphabetGoogle is to deliver up to 3,000 Megawatt Hydroelectric capacity in the US, the largest hydro contract ever signed. It also has a framework agreement with Microsoft With more than 10,500 megawatts renewable capacity in the US and Europe.
In general, with a track record of increasing the payments from 5% to 9% per year, Brookfield renewable shares fits perfectly for investors who want to lock dividend income within a TFSA in the long term.
Canadian tire stock
From renewable power to daily shopping, Canadian band (TSX: CTC.A) is another dividend share that can add balance and a steady income to your TFSA. The activities include various sectors, including retail, financial services and real estate. The banners are Canadian tires, Mark’s and SportChek, who together reach almost every Canadian household.
Canadian tire shares are currently traded at $ 165.54 per share with a market capitalization of around $ 9.2 billion. For this price, the company yields 4.3% annually, paid quarter.
In the second quarter, Canadian Tyre’s retail income rose by 5.2% yoj to $ 4.2 billion, with consolidated comparable sales that grew 5.6% from a year ago. The “True North” transformation strategy of the company reforms all his company, with store innovations about multiple provinces and the concepts of New Sportchek and Mark.
For TFSA investors, the real value of Canadian Tyre is in his ability to combine consistent dividends with long-term growth. The continuous investments in technology, loyalty extension and ownership of the trademark rights of iconic Hudson’s Bay Company clearly show its growth opportunities. These strong basic principles make the Canadian tire shares a reliable TFSA -Pick for dividend income that can grow for decades.
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