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The Tax-Free Savings Account (TFSA) was introduced by the Conservative government led by Stephen Harper in January 2009. This registered account is designed to provide Canadians with another investment vehicle to supplement the Registered Retirement Savings Plan (RRSP). A TFSA offers greater flexibility, allowing investors to withdraw from their potential capital gains without paying any tax penalty. In addition, all capital and income earned in this account is completely tax-free. In 2023, the annual contribution limit for a TFSA increases to $6,500.
Today, I want to look at three stocks that are worth spending on the rise.
This promising TSX stock is still perfect for your TFSA
Park Lawn (TSX:PLC) is a Toronto-based company that owns and operates cemeteries, crematoriums, and funeral homes in Canada and the United States. Shares of this TSX stock were up 3.4% month over month in early afternoon trading on July 17. The stock is down 8.3% year to date in 2023.
The death care market is a worthy target for TFSA investors looking for long-term growth. Death rates in North America have decreased since the end of the COVID-19 pandemic. However, the explosion of the senior population in Canada and the United States means that we will see more activity in this space. Park Lawn delivered revenue growth of 4.3% to $86.7 million in the first quarter (Q1) of fiscal 2023.
Park Lawn shares are trading in favorable valuation territory relative to its industry peers at the time of writing. In addition, TFSA investors can count on a quarterly dividend of $0.114 per share. That represents a modest 1.8% yield.
Here’s why I’m looking for exposure to automation this decade
ATS (TSX:ATS) is a Cambridge-based company that provides factory automation solutions worldwide. Fortune Business Insights recently valued the global industrial automation market at US$ 191 billion by 2021. The same report projects that this market could post a compound annual growth rate (CAGR) of 9.8 % from 2022 to 2029. This TSX stock is up 48% in the year-to-date period.
In Q4 of fiscal 2023, ATS delivered revenue growth of 21% to $730 million. In addition, adjusted basic earnings per share (EPS) increased to $0.73 compared to $0.60 last year. Order Bookings increased 15% to $737 million, and the company’s Order Backlog increased 49% to $2.15 billion.
This TSX stock is on track for strong earnings growth in the future. I’m looking to keep this stock in a TFSA for the 2020s and beyond.
Take advantage of the crypto transformation of your TFSA with this stock
Hut 8 Mining (TSX:HUT) is a Toronto-based cryptocurrency mining company operating in North America. The cryptocurrency space was hit hard in 2022. However, it has started to recover after strong endorsements in recent months, including from BlackRock chief executive Larry Fink. Hut 8 Mining shares have jumped 53% in the past month. The stock is up 353% year to date in 2023.
TFSA investors can take advantage of the booming crypto space with Hut 8 Mining. However, investors should also be wary of volatility in this space.