By investing in the right stocks, you can earn returns far greater than any interest income. You can lay the foundation for long-term financial security and finance the really big purchases later.
Buying and holding a high-quality portfolio of blue chip stocks in one Tax-free savings account (TFSA) would mean you can enjoy the returns without having to pay taxes on any withdrawals. Today we’ll look at two TSX stocks that could be valuable investments in a TFSA against this backdrop.
Brookfield Renewable Partners
Brookfield Renewable Partners (TSX:BEP.UN) is interesting growth stock that also serves as a passive income investment. The $25.53 billion market cap company is a globally diversified owner and operator of clean energy assets. The company’s portfolio totals approximately 21 gigawatts of installed capacity across hydro, wind, solar and storage facilities around the world. Backed by a huge economic moat, this heavy player is also benefiting from the rise of artificial intelligence (AI) infrastructure and growing demand for data centers.
As an investor, Brookfield Renewable seems perfect. It has a healthy pipeline of projects, including a five-year deal that the company signed in 2024 Microsoft to develop more than 10.5 gigawatts of renewable energy capacity for the company in the US and Europe by 2030. At the time of writing, it is trading at $38.80 per share and paying investors $0.373 per share per quarter, which translates into a dividend yield of 5.43%.
Barrick Mining
Where Brookfield Renewable is an investment you can benefit from during the growth period of the renewable energy industry, Barrick Mining (TSX:ABX) is the kind of investment that prepares you for market downturns. Historically, the price of gold has always risen when the economy as a whole has not performed well. People look to gold as a safe haven to hedge against a struggling economy.
Imagine being able to gain exposure to rising gold prices without taking the money out of the market and putting it into an illiquid asset like gold bullion. When the money stays in the market golden sharesit is easier to reallocate as market conditions change. It is not that easy to liquidate solid gold into cash.
ABX stock is the 10th largest Canadian company market capitalization and one of Canada’s largest gold producers. Rising gold prices mean better margins for Barrick Mining shares. In turn, the stock rewards its investors by growing shareholder value through capital gains and dividends. Barrick Mining’s shares pay investors US$0.175 per share every quarter, which translates into a dividend yield of 1.40%.
Silly takeaway
The journey to financial freedom is a long one. It requires a lot of patience, financial discipline and the ability to identify the right assets to buy and hold. Even just $2,000 can go a long way if you invest it in high-quality stocks. Given this, Brookfield Renewable and Barrick Mining stocks could be excellent investments to consider.
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