Latest news with #TFSA
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4 days ago
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Here's Exactly How a $20,000 TFSA Could Grow Into $100,000 by 2030
Written by Aditya Raghunath at The Motley Fool Canada Investing in quality growth stocks and holding them in a Tax-Free Savings Account (TFSA) is a proven strategy to generate outsized gains that are sheltered from Canada Revenue Agency taxes. The maximum cumulative TFSA contribution room in 2025 has increased to $102,000. While Canadian investors should allocate a majority of their funds towards diversified low-cost index funds, those with a high-risk appetite should consider gaining exposure to profitable growth stocks. Typically, growth stocks deliver market-beating returns during bull runs and have the potential to accelerate your retirement timeline by a few years. So, let's see how a $20,000 TFSA could grow to $100,000 by 2030. Hold this TSX stock in your TFSA right now Valued at a market cap of US$151 million, Electrovaya (TSX:ELVA) is engaged in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage and other specialized applications in North America. Electrovaya operates Infinity battery cell technology, comprising both low- and high-voltage systems. It also operates solid-state battery technology. Analysts tracking ELVA stock expect it to increase revenue from US$44.6 million in fiscal 2024 (ended in September) to US$231 million in fiscal 2029. In this period, its free cash flow is forecast to improve from less than US$1 million to US$76.6 million. Wall Street expects the company to benefit from economies of scale and increase its free cash flow margin from 2% in 2024 to 33% in 2029. If ELVA stock is priced at a trailing FCF multiple of 15 times, which is quite cheap, it will be valued at US$1.2 billion in early 2030. This means a US$11,000 investment in ELVA stock today could be worth over US$83,000 in 2030. Analysts remain bullish on the TSX stock and expect it to gain 66% over the next 12 months. The bull case for this TSX stock Valued at a market cap of $1.4 billion, Propel (TSX:PRL) is a fintech company that operates in the financial lending space. It facilitates access to credit products, including installment loans and lines of credit, under the brands MoneyKey, CreditFresh, and Fora Credit. Analysts tracking Propel stock expect it to increase revenue from $450 million in 2024 to $919 million in 2027. Its top line is expected to surpass $1.1 billion by 2029. Analysts also expect adjusted earnings per share to increase from $1.64 in 2024 to $4.50 in 2029. Today, PRL stock trades at a trailing price-to-earnings multiple of 18.4 times, down from its average multiple of 22.5 times. If the TSX stock is priced at 16 times forward earnings, it will trade around $72 in 2030, indicating an upside potential of over 100% from current levels. So, a $9,000 investment in PRL stock today could grow to $18,000 within the next five years. Analysts remain bullish on the TSX stock and expect it to gain 18% over the next 12 months, given consensus price targets. Investors should consider identifying other growth stocks, such as PRL and Electrovaya, and further diversify their portfolios, which helps lower overall investment risk. The post Here's Exactly How a $20,000 TFSA Could Grow Into $100,000 by 2030 appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Electrovaya and Propel. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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4 days ago
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2 Canadian Stocks to Buy and Hold for Life
Written by Sneha Nahata at The Motley Fool Canada If you're looking to build a resilient, long-term portfolio, focus on high-quality Canadian stocks that offer solid growth and can outperform the broader market. Diversification plays a crucial role here as it spreads your risk across sectors and companies, making your holdings more stable over time. Furthermore, pairing this strategy with a Tax-Free Savings Account (TFSA) can amplify your real returns. Since capital gains and dividend income earned within a TFSA are not taxed, this account structure allows your investments to grow unhindered by the usual drag of taxation, which is an especially powerful advantage when compounded over years or even decades. Against this background, here are two Canadian stocks to buy and hold for life. They have solid fundamentals and significant long-term tailwinds. Brookfield Asset Management Brookfield Asset Management (TSX:BAM) is a compelling Canadian stock to buy and hold for life. The alternative asset management company's cash flows are supported by fee-related earnings. Moreover, approximately 95% of its fee-related revenues are derived from long-term or perpetual capital, providing a reliable stream of income that supports consistent distributable earnings. Its investment portfolio includes infrastructure, real estate, power generation, and critical service businesses. These sectors are essential to everyday economic activity and are largely shielded from global trade volatility. Because these assets tend to serve local demand, they are less vulnerable to geopolitical shocks such as tariffs or supply chain disruptions. Many of these assets also benefit from inflation-linked revenue streams, enabling Brookfield to pass rising costs through to end users, preserving margins even in inflationary environments. Brookfield's early investments in sectors now experiencing massive tailwinds, such as renewable energy, data centres, semiconductor manufacturing, and nuclear power, provide a solid base for future earnings growth. These industries are seeing rapid capital inflows, which will drive Brookfield's fee-related earnings and its share price. It continues to deliver solid financials with Q1 fee-bearing capital climbing to $549 billion, representing a 20% year-over-year increase. This expansion drove a 26% increase in fee-related earnings and boosted distributable earnings by 20%. Looking ahead, Brookfield aims to double its business in the medium term and expand the fee-bearing capital to $1 trillion. Furthermore, its business remains capital-light, and the company targets a dividend payout ratio of 90% or higher. In short, Brookfield offers solid long-term growth and income potential. Loblaw Loblaw (TSX:L) is another solid stock to buy and hold for life. Canada's leading food and pharmacy retailer offers stability, solid growth, and income. Despite economic uncertainty, Loblaw has continued to deliver, with its stock already up approximately 16% year-to-date. Over the past five years, Loblaw stock grew at a compound annual growth rate (CAGR) of more than 27%, translating to an impressive total capital gain of about 237%. These gains are driven by its high-quality, defensive business model, which thrives across various market conditions. Loblaw focuses on value, convenience, and an improved customer experience, which drives traffic regardless of economic situations. Its discount banners, No Frills and Maxi, are rapidly expanding and resonating well with budget-conscious shoppers across Canada. As the company expands its national footprint in 2025, its top-line growth is expected to remain solid. Further, its strong push into private-label products, competitive pricing, and a broad product selection all contribute to its growing base of loyal shoppers. The company is also investing in modernizing its supply chain and implementing automation to boost efficiency and lower costs. These moves will support stronger margins over time. Meanwhile, its omnichannel strategy and popular loyalty program give it an edge in capturing consumer data and driving smarter, more effective promotions. Its reliable earnings, expanding store network, and consistent performance in any economic environment make Loblaw one of the most compelling long-term investments. The post 2 Canadian Stocks to Buy and Hold for Life appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
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4 days ago
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Contrarian Investors: 1 Discounted TSX Dividend Stock to Consider Now
Written by Andrew Walker at The Motley Fool Canada With the TSX at a new record high, investors are wondering which top Canadian stocks might still be attractive to buy for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on dividends and long-term total returns. Canadian National Railway Canadian National Railway (TSX:CNR) trades near $137 per share at the time of writing. The stock was as high as $180 at one point in early 2024 before going into an extended slide that saw the share price dip as low as $130 in recent months. Investors sold the stock last year as CN battled through a number of challenges. The company faced several operational disruptions due to labour disputes and wildfires. Strikes and both CN and key ports forced customers to find alternative options for delivering their goods to customers. Wildfires in Alberta caused additional delays along the rail network. CN still managed to eke out a small revenue gain in 2024 compared to 2023, but earnings slipped due to the jump in expenses caused by all the interruptions. Trade negotiations between the United States and Canada are keeping potential CN investors on the sidelines in 2025. The recent threat by the U.S. to impose 35% tariffs on Canadian products would likely drive the Canadian economy into a recession. Tariffs imposed by the U.S. on all of its other trading partners, including China, could also push the United States and the broader global economy into a prolonged slump. If that scenario materializes, CN would see reduced demand for its services. Upside? The contrarian case for buying CN at the current price is the expectation that the U.S. and Canada will reach a reasonable trade agreement in the coming months. Certainty on tariff levels will enable businesses to place orders that are currently being delayed. Agreements between the United States and China, among others, would help stabilize the global trade picture and shipments of commodities and finished goods should return to predictable flows. Once the trade deals are settled, CN's share price could catch a nice tailwind. CN's management team provided optimistic guidance earlier this year. The company expects to deliver a 10% to 15% increase in adjusted diluted earnings per share (EPS) compared to 2024. The board felt comfortable enough with the outlook to raise the dividend by 5% for 2025. This is the 29th consecutive annual dividend increase. CN is also planning to buy back up to 20 million shares under the current stock-repurchase program. Investors who buy CNR at the current level can pick up a 2.6% dividend yield, so you get a return that is above the current rate of inflation while you wait for a rebound in the share price. Time to buy CNR stock? Near-term volatility should be expected, and it is possible the stock could retest the 12-month low in the coming weeks. However, a quick look at the long-term history of CN's share price suggests that buying CNR stock on material pullbacks should prove to be a savvy move for patient investors. If you have a contrarian investing style and can ride out additional turbulence, this stock deserves to be on your radar. The post Contrarian Investors: 1 Discounted TSX Dividend Stock to Consider Now appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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4 days ago
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TFSA: 3 Strong Canadian Stocks to Buy and Hold for Life
Written by Amy Legate-Wolfe at The Motley Fool Canada There's something comforting about finding a Canadian stock you can tuck away in your Tax-Free Savings Account (TFSA) and not worry about for years. You know the type: steady performance, dependable earnings, and a business model that grows stronger over time. With economic uncertainty, high interest rates, and a mixed global outlook, finding those kinds of Canadian stocks feels more valuable than ever. If you're looking to build wealth tax-free over the long haul, these three names are strong contenders to buy and hold for life. RBC Let's start with Royal Bank of Canada (TSX:RY). As Canada's largest bank by market cap, it's a fixture in almost every long-term portfolio. The Canadian stock just reported its second-quarter results for 2025, delivering strong performance across core business lines. Net income rose to $4 billion, up 7% year over year. Its capital markets division had a record quarter with revenue of $3.84 billion, while personal and commercial banking continued to drive stable growth. Even with ongoing economic concerns, RBC's diversified operations help it weather volatility. Its quarterly dividend coming out as $6.16 per share annually is both generous and well-supported by earnings. Over time, this kind of steady performance has made RBC a classic compounder. For TFSA investors, that kind of consistency is gold. Shopify Then there's Shopify (TSX:SHOP), which has become one of Canada's most iconic tech stories. It's also a bit of a roller coaster. But if you can stomach short-term swings, the long-term upside could be worth it. In Q1 2025, Shopify reported revenue of US$1.9 billion, up 23% year over year. Gross merchandise volume also jumped 25% to US$65 billion, showing that businesses continue to rely on its platform. The Canadian stock is finally turning a profit again, reporting net income of US$273 million, or US$0.21 per share, compared to a net loss in the same quarter last year. The big shift has been Shopify's ability to manage expenses while expanding its product ecosystem. It's no longer chasing growth at any cost. For long-term investors, especially those using a TFSA to capture capital gains tax-free, Shopify still offers enormous growth potential. Element Finally, consider Element Fleet Management (TSX:EFN). It may not grab headlines like some energy names, but it's the world's largest pure-play fleet manager, serving Canada, the U.S., Mexico, Australia and New Zealand. In Q1 2025, Element grew net revenue 5% year-over-year to US$276 million, driven by higher utilization of its service offerings and robust financing income. Adjusted operating income came in at US$151 million, reflecting strong operating leverage in its capital-light model. Element's forward dividend yield sits at about 1.5%, with a quarterly payout of $0.13 per share, making it a steady, if modest, income source in a TFSA. Its blend of recurring services revenue (55% of total net revenue) and net financing revenue (40%) delivers resilient cash flow and supports its dividend and buyback programs. While EFN's yield is lower than some high-yield names, its scalable platform, rate-regulated financing initiatives, and global footprint position it to benefit from the ongoing shift toward outsourced fleet management. Bottom line These three Canadian stocks serve different purposes in a TFSA. Royal Bank brings stability and dividends. Shopify offers innovation and high-growth potential. Extendicare adds income and demographic resilience. Combined, these give a strong base for wealth-building in a tax-free account. There are no guarantees in investing. But if you can find businesses with solid fundamentals, clear long-term growth paths, and reasonable valuations, you've already done most of the hard work. For TFSA investors looking to grow their money without constant babysitting, these three stocks offer a well-rounded starting point. Buy them, hold them, and let them do what they do best: grow. The post TFSA: 3 Strong Canadian Stocks to Buy and Hold for Life appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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7 days ago
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Top TFSA Dividend Picks: Secure Your Income Stream This Year
Written by Christopher Liew, CFA at The Motley Fool Canada Many Canadians fear that trade conflict with the U.S. will weigh in on spending plans and affect their financial health in 2025. Fortunately, there is a way to be worry-free of money concerns. The Tax-Free Savings Account (TFSA) can be your financial lifeline. And because the limit increases annually, your tax-free investment income could last for a lifetime. Most TFSA users use their TFSA contribution limits to purchase and hold dividend stocks in the account. The recurring payouts serve as a cushion during economic uncertainties. If you need to secure your income streams this year and beyond, Fortis (TSX:FTS) and Killam Apartment (TSX: are the top TFSA dividend picks. The utilities and real estate sectors have been relatively resilient in today's complex environment. Fortis is a no-brainer investment due to its defensive nature and low-risk profile. The $32.4 billion company provides essential services and boasts a stable, regulated business model. This utility stock is also TSX's second dividend king, owing to 51 consecutive years of dividend increases. At $64.61 per share, the year-to-date gain is 10.3%-plus. Besides the market-beating return, current investors partake in the 3.8% dividend yield (quarterly payout). Expect further dividend growth, as the long-term growth in the rate base is expected to support management's dividend growth guidance. David Hutchens, President and CEO of Fortis, said, 'We are off to a strong start in 2025.' As we navigate volatility in the macro environment, we remain committed to delivering affordable and reliable energy to our customers and annual dividend growth of 4% to 6% through 2029 to our shareholders.' In Q1 2025, net earnings increased 8.7% year-over-year to $499 million, and higher earnings are on the horizon. The new $26 billion five-year capital plan (2025–2029) will increase the mid-year rate base to $53 billion by 2029, representing a 6.5% compound annual growth rate (CAGR). Enhancing shareholder value is an ongoing concern. Fortis will rely on the balance and strength of its diversified regulated utility businesses to fulfill its commitment to investors. After the five-year capital plan, the company will pursue opportunities to expand and extend growth, notably to the transmission grid in the United States. Like Fortis, Killam Apartment doesn't pay ultra-high dividends. Investors' primary consideration is business stability and dividend safety. At $18.98 per share (+13.29% year-to-date), the dividend offer is 3.7%. The best part is that the payout frequency is monthly. The $2.3 billion growth-oriented real estate investment (REIT) develops, owns, operates, and manages apartments (219), manufactured home communities (40), and commercial (9) properties. In Q1 2025, net income declined 19.9% year-over-year to $101.9 million, while net operating income (NOI) increased 7.2% to $59 million. Killam President and CEO Philip Fraser said, 'Our diversified apartment portfolio has demonstrated resilience in the current rental market, maintaining same property occupancy levels of 97.5%, consistent with Q1 2024.' He expects the fully stabilized and completed developments to drive earnings and contribute positively to the REIT's financial performance. For 2025, Killam targets the same property NOI growth of 4% to 7%. Fortis and Killam Apartment are well-established dividend payers in their respective sectors. The former's dividend growth streak is an incredible feat, while the latter is an excellent play in the residential market. The post Top TFSA Dividend Picks: Secure Your Income Stream This Year appeared first on The Motley Fool Canada. Before you buy stock in Fortis, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Fortis wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy. 2025
