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

TFSA Pension: 2 Top TSX Stocks to Buy Now for 2022

Stock MarketsOct 24, 2021 13:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
TFSA Pension: 2 Top TSX Stocks to Buy Now for 2022

Tax-Free Savings Account (TFSA) investors are looking for attractive stocks to buy for their self-directed retirement accounts heading into 2022. The winners next year could be those that benefit from the rebounding economy and an inflationary environment.

TD TD (TSX:TD)(NYSE:TD) is a major player in the Canadian and U.S. banking sectors. The company is the number two bank in Canada by market capitalization is a competitive force south of the boarder with a branch network that runs down the U.S. east coast from Maine to Florida.

TD reported strong fiscal Q3 2021 earnings that indicate the worst of the pandemic is in the rearview mirror. The bank generated $3.6 billion in adjusted net income in the three months. TD had a net reversal of provisions for credit losses in the quarter, as it did in fiscal Q2, indicating a continued improvement among borrowers being able to make their payments.

Deferrals and government aid help avoid the worst-case scenario for TD and its peers. As a result, the company is now sitting on excess cash it built up to cover potential losses. TD finished fiscal Q3 with a CET1 ratio of 14.5%. The minimum requirement is 9%.

Investors should see a big dividend increase next year when the banks are expected to get the approval to restart payout hikes. A new share buyback program and a possible acquisition could also be on the way.

The stock trades at a reasonable 10.5 times trailing 12-month earnings and offers a 3.5% dividend yield.

Barrick Gold Barrick Gold (TSX:ABX)(NYSE:GOLD) traded for $40 per share at the height of the gold rally in 2020 when the price of gold hit US$2,080 per ounce. Since then, the stock has drifted lower, and currently trades near $24 per share.

The 40% sell-off in the stock looks overdone. Gold currently trades near US$1,800 per ounce. That’s just a 13.5% drop from the 2020 high. The recent tailwind behind the price of gold could carry through the end of the year and into 2022 as investors around the globe look for a safe place to park cash to protect against inflation and a possible market correction in global stocks.

Barrick Gold is also a large producer of copper. The price of the base metal hit multi-year highs in 2021 and strong demand is expected to keep copper prices elevated in the next few years. Copper is a key component in the manufacturing of electric vehicles, solar panels, and wind turbines.

Barrick Gold paid out a US$750 million special return of capital to investors in 2021. Another bonus could be on the way in 2022 on top of a potential dividend increase. Barrick Gold tripled the dividend over the past three years.

The company has a strong balance sheet and should generate solid cash flow and profits next year even if gold and copper prices hold current levels.

The bottom line TD and Barrick Gold are leaders in their respective industries. The stocks appear cheap right now and could deliver big gains for investors next year. If you have some cash to put to work in a TFSA retirement fund, these stocks deserve to be on your radar.

The post TFSA Pension: 2 Top TSX Stocks to Buy Now for 2022 appeared first on The Motley Fool Canada.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Andrew Walker owns shares of TD Bank.

This Article Was First Published on The Motley Fool

TFSA Pension: 2 Top TSX Stocks to Buy Now for 2022
 

Related Articles

Will This Ultra-Cheap Stock Rebound Strongly Soon?
Will This Ultra-Cheap Stock Rebound Strongly Soon? By The Motley Fool - Dec 03, 2021

The pandemic has impacted some companies far more than others. Tech stocks surged last year while the rest of the economy has been recovering this year. One stock that seems to...

Should You Buy Enbridge (TSX:ENB) Stock Before 2022?
Should You Buy Enbridge (TSX:ENB) Stock Before 2022? By The Motley Fool - Dec 03, 2021

Long-term investors have a wealth of options to consider on the TSX when looking for suitable investments that align with their financial goals. The worst period of the pandemic...

Why Canada Goose (TSX:GOOS) Is Down 6.9% Today
Why Canada Goose (TSX:GOOS) Is Down 6.9% Today By The Motley Fool - Dec 03, 2021

Canada Goose (TSX:GOOS)(NYSE:GOOS) stock nosedived this morning. The stock is down 6.9% at the time of writing, while the rest of the stock market is trending lower, too. The...

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