A Great TSX Stock to Consider Right Now for Your $7,000 TFSA Contribution

TFSA 2024

The TFSA limit is $7,000 in 2024. This brings the cumulative maximum contribution space to $95,000 for anyone who has qualified every year since the inception of the TFSA in 2009.

All interest, dividends, and capital gains earned inside the TFSA are not taxed. That means the full value can either go right into your pocket as tax-free income or can be reinvested. Seniors who collect Old Age Security (OAS) and have high retirement income should try to make sure they use up their full TFSA contribution space before holding income-generating investments in taxable accounts. The Canada Revenue Agency implements an OAS pension recovery tax of 15% on every dollar of net world income above a minimum threshold. In the 2024 income year, this number is $90,997.

For example, a senior with a 2024 net world income of $100,997 would see their total OAS pension cut by $1,500 in the July 2025 to June 2026 payment schedule. Where possible, it makes sense to avoid or minimize this hit.

Good TFSA stocks

A number of top TSX stocks currently trade at discounted prices due to the impact of rising interest rates. Telecoms, for example, spend a lot of money on capital projects and use debt to fund part of the growth program. Higher borrowing costs put a dent in profits and can potentially drive up expenses to the point where some projects are no longer viable.

That being said, the pullback in the share prices of some great dividend-growth stocks looks overdone.

Telus

Telus (TSX:T) trades near $24 per share at the time of writing compared to more than $34 at the high point in 2022.

The company’s core mobile and internet subscription services are required by businesses and households, regardless of the state of the economy, so Telus should be a good stock to own if you are concerned there will be a significant recession.

Telus generated solid results in 2023, despite the headwinds. Full-year consolidated operating revenue rose 9.4%, and free cash flow expanded by 38%. Telus expects free cash flow to increase another 30% in 2024. That should support continued dividend growth.

Challenges in the international subsidiary led to staff cuts and a reduction of financial guidance in 2023. The worst should be over on that front, and the reduction in salary expenses should help offset elevated borrowing costs in 2024.

Telus has increased the dividend annually for more than 20 years. Investors who buy the stock at the current level can get a 6.25% dividend yield.

The bottom line

Ongoing volatility should be expected until there is clear evidence the Bank of Canada will start to cut interest rates. However, Telus pays a great dividend that should continue to grow, and the shares already look cheap. If you have some TFSA cash to put to work, this stock deserves to be on your radar.

Insider Monkey
Is Select Medical Holdings Corporation (SEM) the Best High-Flying Stock to Buy?
We recently compiled a list of the 10 High-Flying Stocks to Buy Now. In this article, we are going to take a look at where Select Medical Holdings Corporation (NYSE:SEM) stands against the other high-flying stocks. The equity markets are priced for a soft landing. This means that even the fear of a mild recession might trigger […]
PA Media: UK News
Gary Lineker: Bigger problems in the world than my Match of the Day contract
Last week the BBC denied an announcement was pending regarding its highest-paid star.
PA Media: UK News
Duke and Duchess of Edinburgh to visit Malta to mark 60 years of independence
Edward and Sophie will spend four days on the island, carrying out a packed schedule of engagements.
Hello!
Lila Moss has a Kate Moss-inspired moment in sheer slip skirt
The Versace muse emulated her supermodel mother in the whimsical piece - see more
Insider Monkey
Cigna Group (CI): One of the Best Stocks to Buy According to Larry Robbins
We recently compiled a list of the Larry Robbins’ 10 Best Stocks to Buy Now. In this article, we are going to take a look at where Cigna Group (NYSE:CI) stands against the other Larry Robbins-approved stocks. Glenview Capital Management, founded in 2000, manages approximately $5.6 billion in discretionary assets for six clients, according to their […]
The Guardian
Minister denies government in disarray despite departure of Sue Gray
John Healey says Labour ‘getting on with job’ after chief of staff quit less than 100 days in to new government
PA Media: Money
Salmon 50p with King’s portrait leaps to rarest in circulation – Royal Mint
Just 200,000 of the Atlantic Salmon 50ps have been released to UK banks and post offices.
PA Media: UK News
Massive rise in antisemitism since October 7 attacks, says Jewish group leader
One year on from the October 7 attacks, Phil Rosenberg said the rise in antisemitism has reached 500% over what they have seen in previous years.
Reuters
Ukraine's Shmyhal discusses energy security with Slovakia's Fico
Ukrainian Prime Minister Denys Shmyhal began talks on Monday with Slovakia's Prime Minister Robert Fico which he said would focus on infrastructure cooperation, energy security and support for Kyiv's peace plan. Fico has been a big critic of Western military aid to Ukraine along with Hungarian Prime Minister Viktor Orban.
The Canadian Press
India offers financial support to Maldives after talks to repair ties
NEW DELHI (AP) — India stepped up its development assistance to the Maldives after the two leaders held talks in New Delhi on Monday in a bid to repair strained ties that saw the president of the Indian Ocean archipelago forging closer ties with China.
Insider Monkey
Is Onto Innovation Inc. (ONTO) the Best High-Flying Stock to Buy?
We recently compiled a list of the 10 High-Flying Stocks to Buy Now. In this article, we are going to take a look at where Onto Innovation Inc. (NYSE:ONTO) stands against the other high-flying stocks. The equity markets are priced for a soft landing. This means that even the fear of a mild recession might trigger a […]
The Canadian Press
Milton increases to a Category 2 hurricane as Florida prepares for massive evacuations
FORT LAUDERDALE, Florida (AP) — Milton increased to a Category 2 hurricane early Monday as Florida gears up for what could be its biggest evacuation in seven years as the storm heads toward major population centers including Tampa and Orlando.
BBC
Nobel Prize goes to microRNA researchers
US scientists Victor Ambros and Gary Ruvkun helped explain how genes work inside the human body.
PA Media: UK News
Heart of Government has become lightning rod for criticism – Cabinet minister
Defence Secretary John Healey said the commentary around Sue Gray had started ‘removing focus on the Government’s job’.
The Canadian Press
AP Top 25 Extra Points: Alabama question challenges voters with upset following big win over Georgia
While fans across the country were on edge watching upset after upset unfold Saturday, Houston Chronicle sports columnist Kirk Bohls and other members of The Associated Press college football poll voting panel were thinking ahead to how they would sort out and arrange the teams they would put on their ballots Sunday.
The Canadian Press
Ukraine strikes a Russian oil hub as Zelenskyy says the war is in 'a very important phase'
KYIV, Ukraine (AP) — Ukraine’s military claimed it struck a major oil terminal Monday in Crimea that provides fuel for Russia’s war effort as Ukrainian President Volodymyr Zelenskyy said the war has entered a key phase.
Evening Standard
Chelsea striker Nicolas Jackson awaits FA decision on Nottingham Forest 'slap'
Both clubs could be in hot water after the ugly brawl that marred a feisty clash at Stamford Bridge
PA Media: UK News
Man dies and several injured after explosion at flats in Alloa
Fire and emergency crews were called to Kellie Place in the town on Sunday evening.
Insider Monkey
Is Novavax, Inc. (NVAX) the Best High-Flying Stock to Buy?
We recently compiled a list of the 10 High-Flying Stocks to Buy Now. In this article, we are going to take a look at where Novavax, Inc. (NASDAQ:NVAX) stands against the other high-flying stocks. The equity markets are priced for a soft landing. This means that even the fear of a mild recession might trigger a significant […]
Investing.com
Apple shares tick lower as Jefferies cuts rating on rich valuation
Investing.com -- Shares in Apple (NASDAQ:AAPL) fell 1.5% in premarket trading Monday after Jefferies analysts cut their rating on the stock from Buy to Hold. The investment bank set a price target of $212.92 on Apple, suggesting a potential downside of around 6% from the last closing price.

S&P/TSX

S&P 500

DOW

CAD/USD

CRUDE OIL

Bitcoin CAD

XRP CAD

GOLD FUTURES

RUSSELL 2000

10-Yr Bond

NASDAQ futures

VOLATILITY

FTSE

NIKKEI 225

CAD/EUR

TFSA 2024

Good TFSA stocks

Telus

The bottom line

Latest Stories