Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

3 Amazing Dividend Stocks for New TFSA Investors

Stock MarketsAug 24, 2021 09:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
3 Amazing Dividend Stocks for New TFSA Investors

The TFSA is a great tool for new investors who want to start investing in top Canadian dividend stocks.

TC Energy TC Energy (TSX:TRP)(NYSE:TRP) is a leading player in the North American energy infrastructure industry with more than $100 billion in assets located in the United States, Canada, and Mexico. The company’s businesses are heavily weighted to natural gas transmission, with power plants and oil pipelines rounding out the portfolio.

Natural gas has a bright future. The fuel releases significantly less carbon dioxide than oil or coal when burned to produce electricity. It is also used in tens of millions of homes and businesses to warm buildings, heat water, and cook food. As the world transitions from fossil fuels to renewable energy, natural gas is viewed by many countries as a reasonable option to get away from burning oil and coal until sustainable and reliable power can be sourced via cleaner technologies.

TC Energy is working through a $21 billion capital program that will support steady revenue and cash flow growth. As a result, the board expects to raise the dividend by 5-7% per year over the medium term. The stock appears undervalued right now near $58 per share and provides a 6% dividend yield.

Fortis Fortis (TSX:FTS)(NYSE:FTS) is a utility company with power generation, electric transmission, and natural gas distribution assets located in Canada, the United States, and the Caribbean. The stock is a great pick for dividend investors who want to own a reliable company without having to watch the share price every week.

Fortis has raised the dividend in each of the past 47 years and is targeting an average 6% per year increase through 2025. The company has a great track record of growing the business through a combination of strategic acquisitions and organic developments. The current $19.6 billion capital program will boost the rate base from $30 billion in 2020 to $40 billion in 2025.

Royal Bank Royal Bank (TSX:RY)(NYSE:RY) has delivered great returns for long-term investors, and that trend should continue. Canada’s largest bank by market capitalization is also one of the biggest in the world. The company’s size gives it the financial firepower needed to compete for big financing deals, and Royal Bank has the clout to make large strategic acquisitions when attractive opportunities surface.

The bank has navigated the pandemic in good shape. Royal Bank generated $4 billion in profits in fiscal Q2 2021. Some pain could be on the way once government aid programs end and highly leveraged businesses or homeowners run into trouble, but Royal Bank is more than capable of absorbing the anticipated hit. In fact, it set aside too much cash last year to cover potential loan losses. This means investors should see generous dividend increases and share buybacks as soon as the government allows Royal Bank and its peers to restart these programs.

The stock isn’t cheap right now, but trying to time dips in Royal Bank’s shares often results in lost dividends and missed upside in the share price. Investors who buy now can pick up a decent 3.3% dividend yield.

The bottom line for new TFSA investors Quality dividend stocks should perform well over the long run for a TFSA portfolio. TC Energy, Fortis, and Royal Bank have great track records and deserve to be strong anchor picks to start a dividend-focused TFSA.

The post 3 Amazing Dividend Stocks for New TFSA Investors appeared first on The Motley Fool Canada.

The Motley Fool recommends FORTIS INC. Fool contributor Andrew Walker owns shares of Fortis and TC Energy.

This Article Was First Published on The Motley Fool

3 Amazing Dividend Stocks for New TFSA Investors
 

Related Articles

Is Lightspeed (TSX:LSPD) Stock Price Still a Buy?
Is Lightspeed (TSX:LSPD) Stock Price Still a Buy? By The Motley Fool - Dec 05, 2021

Lightspeed Commerce (TSX:TSX:LSPD)(NYSE:LSPD) stock has been in a downward spiral for months. Currently trading for $64, it’s down 59% from its all-time high. The...

Could This Retail Stock Become a Tech Stock?
Could This Retail Stock Become a Tech Stock? By The Motley Fool - Dec 05, 2021

The line between retail and technology has been blurring for years. Nearly everything you can buy in a store is now also available online on the store’s website. This is...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email