Unleash Your Retirement Potential: TFSA Stocks to Watch

Retirement should be a time when investors worry less about cash flow. However, if you are looking to retire soon, retirement may instead cause you a lot of stress. Especially in TSX stocks decreased by an unbelievable amount in 2023.

However, there seems to be some light at the end of this dark tunnel. Analysts continue to evaluate the belief that there will be a positive end to 2023. That has certainly been the case in the United States, where analysts such as Tom Lee predict the S&P 500 reaching a record high.

However, retirees should be careful. Instead of looking at riskier growth stocks, look at blue-chip stocks that are offering a deal today. Then, match that by putting these investments into your Tax-Free Savings Account (TFSA). Combined, you can create an optimal retirement portfolio for 2023 and beyond.

What to consider

Most investors, including retirees, know that companies are not the best choice just because they are trending. This lesson was seen during the rise in share prices in 2020 and 2021, followed by the fall in 2021 and 2022, and now continues in 2023.

But now, it seems that investors have started hoarding their money instead of investing it. That could be a serious mistake. If you keep your money and never earn interest on it, or collect dividends, it will stay that way. It doesn’t go up like inflation does, but instead collects dust.

That’s why it’s still important to invest even during downturns, but maybe shift your focus to other investments. That might mean jumping into a blue-chip stock while it’s down 10%, knowing from research that it will rise. This can be choosing an exchange-traded fund (ETF), or even investing in guaranteed investment certificates (GIC).

For me, I’m going with the decline in blue-chip stocks. You can find a lot of lows now, but there is a long history of growth and more to come. In that case, this is my choice.

TFSA stocks to consider

If you want stability, then you should consider blue-chip stocks for your TFSA. These are companies that have become household names, that almost every Canadian – investor or not – knows the company you’re talking about.

In that case, the first option I would look at is Sun Life Financial (TSX:SLF). Sunlife stock provides insurance and asset management throughout North America and Asia. While insurance is its lifeblood, its asset management services have grown to provide about 38% of its adjusted revenue, as of writing.

Additionally, higher interest rates tend to bode well for insurance companies like Sun Life stock. The stock should hit mid- to high-single-digit growth in revenue and earnings through 2023. This means it should also continue to grow its dividend, with the company currently holding Dividend Aristocrat status. . The stock currently offers a 4.42% dividend yield, higher than the 3.86% five-year average, and trades at a valuable 12.7 times earnings as of writing.

Another strong option is TFI International (TSX:TFII), which has seen huge growth since the shipping boom that accompanied the pandemic. The trucking and logistics company continues to keep a strong balance sheet, making smart acquisitions over the past few months, and indeed years. TFI stock was able to take advantage of struggling companies and create a large discount network.

It’s important to note that even though the company’s earnings reports fell below estimates, this stock is still worth putting on your radar among TFSA stocks. If these acquisitions come to fruition, especially during a stronger economic environment, they should bring in more revenue than ever before. It should also allow the stock to increase its dividend again. Shares of the blue-chip stock currently trade at 13 times earnings, with a 1.23% dividend yield that is nearly double its five-year average yield.

Bottom line

Now is not the time to panic, but I don’t blame you for not wanting to be selfish either. Retirement can be stressful, especially when all of your hard-earned money is gone. Instead, put these blue-chip stocks on your watchlist, putting them in your TFSA when the price hits. You can collect dividends, and increase returns for decades to come.