In previous articles, I have gone over why millennials should start investing early and often. Millennials face a challenging environment, as the cost of living continues to increase significantly in the 21st century. For those that value flexibility, the Tax-Free Savings Account (TFSA) is a fantastic option going forward.
Today, I want to focus on three stocks that can work to build a balanced TFSA that will offer opportunity for big growth in the long term, while also providing a solid base of income.
Innergex Renewable (TSX:INE) No one wants to feed into the tired cliché of the obsessively socially conscious millennial. In truth, renewables are a sound investment when we consider how much the private and public sector is investing in clean energy. Last year marked the fifth year in a row in which global renewable energy investment exceeded the $300 billion mark.
Innergex stock has climbed 13.4% in 2019 as of close on February 13. Shares have climbed 40% over the past five years. Innergex reported that production jumped 37% year to date in 2018, while revenues rose 40% to $408.2 million. The company is set to release its Q4 and full-year results next week.
Innergex last paid out a quarterly dividend of $0.17 per share. This represents a solid 4.7% yield.
Cronos Group (TSX:CRON)(NASDAQ:CRON) Millennial investors have been active in the cannabis sector early on. For those who have exercised patience, the last few years have likely been very rewarding. Cronos Group, a Toronto-based integrated cannabis company. Shares have surged 88% in 2019 as of close on February 13.
Cronos Group has generated a lot of excitement ahead of its fourth-quarter results, which are expected to be released in the coming weeks. In the summer of 2018, Cronos inked a deal to supply U.S.-based Cura Cannabis Solutions with 20,000 kilograms of cannabis. Cronos is working to increase its domestic production volumes along with other big producers.
Cronos’s $1.8 billion deal with tobacco giant Altria (NYSE:MO) is reason for confidence in the company going forward. The stock is pricing near all-time highs right now but has demonstrated that it will be a major player in a young and promising global market.
Kinaxis (TSX:KXS) Kinaxis is an Ottawa-based provider of software solutions for sales and operations planning and supply chain management. Shares have climbed 22.5% in 2019 as of close on February 13. The stock is still down 2.4% year over year.
Kinaxis stock took a major hit after the release of its Q3 2018 results in November. The company said that this was due to some late-stage deals slipping out of the quarter, negatively impacting revenue growth. The stock slipped to a 52-week low in late December but has been surging since.
The company is expected to release its fourth-quarter and full-year results for 2018 in late February or early March. Kinaxis’s technology is in high demand, as companies adjust to the rigorous demands of present-day supply chain planning. This stock is still one of the top tech equities on the TSX, and investors should feel comfortable holding into the next decade.
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. Kinaxis is a recommendation of Stock Advisor Canada.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019