TFSA Investors: 3 Cheap Canadian Stocks for Retirees

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Written by Amy Legate-Wolfe at The Motley Fool Canada

If you’re looking for a deal, now is the time to get one. That’s especially true if you’re a retiree with a Tax-Free Savings Account (TFSA). Canadian investors have been seeking out dividend stocks all over the place, but haven’t really taken into consideration the growth that’s coming. This, too, is passive income that retirees should consider when making their investments.

So today, we’re going to look at two Canadian stocks that remain incredibly cheap for retirees to consider. Ones that offer dividend income, but also superior growth – growth that looks to stand the test of time. So let’s get right into it.

goeasy

First, let’s look at long-term loan provider goeasy (TSX:GSY). Goeasy stock is an incredibly great investment for retirees to consider. Throughout time, everyone has needed loans. And goeasy has been around since 1990 providing lending and leasing services to Canadians across the country.

Yet many thought the stock wouldn’t do well after a government announcement stated it will reduce the maximum allowable rate of interest to an annual percentage rate (APR) of 35%. Some thought this would hurt the company’s portfolio of loans, but goeasy stock was excited by the news. It would attract smaller, higher-interest companies and push them towards goeasy, it argued. And that seems to be happening.

Goeasy recently announced yet another record-setting earnings report. Further, loan originations rose 13% year over year to $722 million, helping drive a 23% increase in revenue to $322 million. So while shares are up 23% in the last month, there is certainly more to come – all while receiving a higher-than-usual 2.95% dividend yield.

Topicus.com

For those wanting in on future gains at the right price, retirees can look at Topicus.com (TSXV:TOI). Now usually I would not recommend a new tech stock to retirees looking for future returns. However, Topicus stock is different. That’s because it’s a spin off of long-time essential software acquisition company, Constellation Software (TSX:CSU).

Both invest in essential software, buying it and putting it out again under their name. Constellation will help run the company until its management team, picked by the superior Constellation management team, can run it. One runs in North America, the other in Europe. The main difference? Constellation trades at $3,155 as of writing, with Topicus stock at just $94.

So if you want major returns in the next decade or so, Topicus stock looks like a solid buy. While it doesn’t offer a dividend, this could happen in the future as it becomes just as solid as Constellation stock.