3 Stocks to Strengthen Your TFSA in Today’s Market
The Motley Fool
Published Jan 20, 2019 13:15
Updated Jan 20, 2019 13:36
The S&P/TSX Composite Index had climbed 6.2% in 2019 as of close on January 17. This is an impressive bump upward after a brutal finish to the prior year. Amazingly, the TSX is on pace to recoup its 2018 losses in January if this momentum continues. It is hard not to get excited about the sharp reversal, but investors should stay on their toes in early 2019.
Today, I want to look at three stocks that are worthy additions to a TFSA right now. Each stock has offered solid capital growth in recent years while also providing attractive income for shareholders. Equities like these will be extremely valuable, as Canada and other developed nations adjust to a low-growth environment in the coming quarters.
Scotiabank (TSX:BNS)(NYSE:BNS) Scotiabank stock had climbed 7.4% in 2019 as of close on January 17. Shares are still down 10.4% year over year. Back in late December, I’d recommended that investors look to stack Scotiabank stock after it fell into oversold territory leading up to Christmas Day.
The bank is expected to release its first-quarter results in late February. GDP growth is set to slow to 1.7% in Canada this year, but Scotiabank boasts solid diversification. Its footprint in Latin American markets was a source of solid growth in 2018, and this will continue to be a focus this year.
Scotiabank last paid out a quarterly dividend of $0.85 per share. This represents a 4.5% yield. Scotiabank stock is veering into overbought territory in mid-January, so investors may want to await a pullback before jumping into this hot market.
Genworth MI Canada (TSX:MIC) Genworth MI Canada stock had climbed 9.1% in 2019 as of this writing. Shares were up 5.6% year over year. Genworth is expected to release its fourth-quarter results in early February.
The stability of the Canadian housing market has been a common topic of conversation and is often cited by the Bank of Canada in its evaluations of economic health. Genworth is a private residential mortgage insurer and managed to weather turbulence after insured buyers were subjected to a stress test starting in late 2016.
Genworth MI Canada last upped its quarterly dividend to $0.51 per share. This represents a 4.3% yield. Genworth stock last had an RSI of 63 as of close on January 17, indicating that the stock is pricey right now. Although Genworth is an attractive long-term hold, this is another case where investors may want to wait for better buying conditions.
Get The App
Suncor (TSX:SU) (NYSE:SU) Suncor Energy stock had climbed 8.9% in 2019 as of close on January 17. The stock has bounced back nicely after suffering from severe volatility largely due to plummeting oil prices. Production cuts have eased the pain in early 2019, but energy giants will still have to contend with major challenges at current prices.
Suncor opposed the curtailment strategy laid out by Alberta, which has successfully propped up the price of Western Canadian Select (WCS). This is because Suncor has invested in refinery and retail businesses that have shielded the company from price differentials between WCS and West Texas Intermediate.
Suncor had a fantastic fourth quarter, which saw production surge 12% from Q3 to 831,000 barrels of oil equivalent per day. Full results are set to be posted in early February. Suncor last paid out a quarterly dividend of $0.36 per share, which represents a 3.4% yield. The stock has rebounded into neutral territory and remains one of the top energy equities available on the TSX.
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned.
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.