Invest in These Stocks to Make the Most of Your TFSA

If you have been contributing to your TFSA (Tax-Free Savings Account) for years but haven’t tried investing in the stock market, you might miss out on great opportunities to grow your savings by retirement. While recent macroeconomic concerns, primarily driven by inflationary pressures, high-interest rates, and the possibility of a recession, have made it difficult to pick quality stocks to invest in for the short term, the Canadian stock market never runs out of good investment options for long-term TFSA investors.

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In this article, I’ll talk about two of the best Canadian stocks you can buy right now and hold for the long term to make the most of your TFSA.

My first top stock pick for TFSA in June 2023

One of the biggest concerns that remain in TFSA investors’ minds while investing in the stock market is that they don’t want to take unnecessary risks with their hard-earned savings. And to me, that actually makes a lot of sense, as investing in some highly volatile penny stocks with weak growth prospects can potentially wipe out a big chunk of your invested money in no time. Nonetheless, it doesn’t mean that TFSA investors should stay away from stock investing. Instead, they may want to include some safe stocks in their portfolio with a proven track record of yielding steady returns for their loyal investors.

Speaking of safe stocks, Dollarama (TSX:DOL) could be the Canadian stock worth considering for TFSA in June 2023. Interestingly, this reliable stock has delivered double-digit positive returns to investors each year since 2010, except in 2018. Despite facing multiple market up and downs and macroeconomic uncertainties in between, DOL stock has risen 581% in the last 10 years. This discount retailer’s shares have gone up 4.3% in 2023 so far to currently trade at $82.58 per share with $23.6 billion in market cap.

More importantly, Dollarama has a very reliable business model as the demand for its affordable products and discounted essential items tend to remain solid, even in difficult economic environments, which also helps this TSX stock rise. This is one of the key factors that can make it a great inclusion to your TFSA.

My second top stock pick for TFSA investors now

While it’s okay if you don’t want to include financially weak companies in your TFSA, you should try never to miss an opportunity to buy a stock with a strong fundamental outlook on a dip. Keeping that in mind, Aritzia (TSX:ATZ) could be worth considering right now. The shares of this Vancouver-headquartered apparel designer and retailer have dived 34% since the end of 2021 after delivering an outstanding 313% positive returns in the previous four years. With this, ATZ stock currently trades at $34.77 per share with a market cap of $3.1 billion.

The underlying strength in its long-term financial growth trends could be understood by the fact that Aritzia’s sales grew positively by 195% in five years between its fiscal year 2018 and 2023 (ended in February). You can expect this sales growth rate to accelerate further and help ATZ stock rally in the coming years, as the company remains focused on expanding its presence outside its home market, with its current key focus on the United States market.

The post Invest in These Stocks to Make the Most of Your TFSA appeared first on The Motley Fool Canada.

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The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.