TFSA Investors: Where I’d Put That $6,500

Written by Amy Legate-Wolfe at The Motley Fool Canada

It can be hard to see beyond what’s happening in the markets right now. It’s a wild west out there, with markets rising from news coming from the Bank of Canada one minute and then falling with some bad earnings reports the next. So, what should Tax-Free Savings Account (TFSA) investors do with that new $6,500 of contribution room?

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In my opinion, it’s time to start semi-ignoring what’s going on in the markets. If you’re interested in long-term investing, which you should be, then I would consider safe companies that won’t just do well now but for decades beyond.

In that light, these are the two top stocks I would recommend for TFSA investors.

Nutrien

Nutrien(TSX:NTR) shares rose and fell drastically in 2022. Yet now they’re back to value territory for those seeking solid long-term income. And you can certainly get that from Nutrien stock. The company is set up for major growth, despite its young age. That’s because it provides crop nutrients to the world over, including highly populated countries such as India.

With the need for arable land ever more important, Nutrien stock proved its worth during the pandemic. It increased its e-commerce branch, providing farms with nutrients during everything from droughts to floods. The company fell during 2022 after the boom from the Russian invasion of Ukraine, so we’re back to seeing this company for what it is: long-term value.

TFSA investors would do well to consider Nutrien stock for their $6,500. It trades at 5.45 times earnings and offers a 2.51% dividend yield with shares still up 19.6% in the last year. Here’s where you could be standing after a year if it returns to 52-week highs of $147.

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