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 returns from different market segments that you’ll regret not investing in.
Choice 1: The telecom
Canada’s big telecom stocks make an excellent long-term investment option for those looking for long-term growth and juicy dividends. And that is the telecom that investors should be thinking about at the moment Telus (TSX:T)
Telus offers the usual complement of subscriber-based services to customers across Canada. That includes landline, wireless, TV and internet services.
These segments are incredibly defensive, which translates into a major advantage for potential Canadian investors.
That’s not all. Thanks to the sheer necessity they provide, these services also generate a stable and recurring revenue stream that allows Telus to invest in growth and pay a nice dividend.
In terms of growth, this includes investing in upgrading infrastructure and expanding its coverage. The company is also investing in AI data center investments. In fact, Telus has earmarked more than $50 billion for these projects through 2029.
When it comes to dividends, Telus is making a big impression on Canadian investors. The company offers a tasty quarterly dividend with an 8.2% yield, making it a top-paying option.
Telus has also offered investors annual or better increases in that dividend for two decades.
Choice 2: The big sofa
It would be nearly impossible to compile a list of great stocks for Canadian investors to top up their TFSAs without mentioning a major bank stock.
And that big bank share we need to consider now is Toronto Dominion Bank (TSX:TD).
TD is the second largest of the big banks with a huge presence on both sides of the border. In Canada, TD’s stable branch network provides a revenue source that allows the company to invest in growth and pay a tasty quarterly dividend.
The US is TD’s most important growth market. In the years since the Great Recession, TD has built an impressive network on the East Coast. Today, that branch network extends from Maine to Florida and is a growing source of revenue for the bank.
As for dividends, TD has been paying dividends for over 160 years without fail. That’s an incredible amount of time and speaks to the bank’s stability for Canadian investors.
At the time of writing, TD offers a respectable 3.7% yield, making it a solid option for any portfolio.
Choose 3: the utility
A final choice for Canadian investors looking to invest in their TFSA is Canadian utilities (TSX:CU). Canadian Utilities is one of the best-known utility companies with a growing portfolio of activities at home and abroad.
Outside of Canada, Canadian Utilities has offices in Mexico, Australia, Chile and Puerto Rico. Like the domestic operations, these facilities provide a recurring, regulated and stable source of revenue for the company.
This stable revenue stream allows Canadian Utilities to invest in growth and continue paying its generous quarterly dividend. At the time of writing, that dividend has a yield of 4.3%.
More importantly, Canadian Utilities has provided investors with tasty increases in that dividend for an incredible 53 consecutive years without fail.
That makes Canadian Utilities one of only two Dividend Kings in Canada, and the longest streak of any company.
Final thoughts for Canadian investors
No share is without risk. That’s why a well-diversified portfolio is a must for Canadian investors. That is also why this trio of stocks is so attractive.
Telus provides the stability, TD provides the financial strength and Canadian Utilities defends. It’s the perfect mix of investments that can propel your portfolio to greatness over the long term.
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 is tax-free.
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