In Canada, investors have a significant tool at their disposal in the form of the Tax-Free Savings Account (TFSA). The TFSA allows investors to buy stocks of all types, from dividend stocks to growth stocks, allowing us to have exposure to the success of the company without having to pay taxes.
Whether you earn dividend income or your stocks gain a tonne of value, none of that income is taxable. And when you consider just how much taxes investors can save by investing in the TFSA and how much you can gain by reinvesting that cash and taking advantage of the power of compounding, it’s clear what a significant advantage the TFSA offers.
In order to fully take advantage of the TFSA, though, it’s essential to buy high-quality companies that can earn you consistent gains for years.
That’s why some of the best stocks to buy for your TFSA are dividend-growth stocks. These are companies that are well established, pay an attractive dividend and are constantly increasing that dividend year in and year out.
So, if you’re looking to add stocks to your TFSA today, here are two of the best dividend-growth stocks to buy.
A top Canadian dividend-growth stock to buy for your TFSA
One of the top dividend-growth stocks in Canada to buy for your TFSA and hold for the long haul is Brookfield Infrastructure Partners (TSX:BIP.UN), the impressive defensive growth stock.
Brookfield is an excellent investment for many reasons starting with the fact that it’s so defensive but also operates as a growth stock.
It’s an impressive business with a strong management team that’s ideal for any market environment, which is why it’s an excellent stock to buy in your TFSA for the long term.
First off, Brookfield owns assets in four segments: utilities, midstream, data, and transport. Plus, with assets diversified worldwide, Brookfield’s global presence allows it to tap into growth in emerging markets and diversify risks.
In addition, the majority of Brookfield’s assets have inflation-protected revenue streams, which not only helps to protect you from inflation but actually allows Brookfield to benefit from these environments.
Plus, infrastructure is known for generating stable and predictable cash flows, given the essential nature of the services they provide. This stability is a major reason why Brookfield is such a reliable long-term investment and can support consistent dividend payouts.
And on top of its defensive qualities, Brookfield is consistently expanding its asset base through strategic acquisitions and recycling capital to continue finding new opportunities to increase value for investors.
This constant growth is part of why Brookfield aims to increase its distribution by 5-9% each year. And right now, the stock offers a yield of more than 4.6% while it trades towards the bottom end of its 52-week range.
If you’re looking for a high-quality dividend-growth stock to buy in your TFSA, Brookfield Infrastructure is one of the best stocks to consider.
A top energy infrastructure stock
In addition to Brookfield, another high-quality dividend growth stock to buy now is Enbridge (TSX:ENB), the massive energy stock with a market cap north of $99 billion.
First off, one of the best reasons to own Enbridge is for its impressive dividend yield, as well as its consistent dividend growth. Enbridge currently boasts a dividend yield of roughly 7.2% and has increased its dividend for 27 consecutive years. In fact, in just the last five years, the dividend has increased by more than 32%.
These consistent dividend payments can provide a steady income stream for TFSA investors and allow you to reinvest that cash into more investments.
The reason Enbridge can pay such a safe and consistently growing dividend is due to its essential business operations. The stock’s core business revolves around transporting, distributing, and generating energy.
Not to mention, utilities and energy infrastructure businesses tend to be defensive, meaning they’re somewhat insulated from broader economic downturns since they are so essential.
Therefore, Enbridge is both a reliable dividend stock and a business that consistently offers long-term growth potential.
So, if you’re looking for high-quality, dividend-growth stocks to add to your TFSA today, Enbridge is certainly one of the top stocks in Canada.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
