As we enter the final months of 2017, this is a good time for investors to revisit their TFSA contributions and ponder moves for the next year. The Liberal government has maintained the $5,500 contribution limit for the TFSA in 2016 and 2017, and it is expected to do the same in 2018.
The S&P/TSX Index has declined marginally in 2017 — down 0.33% as of close on September 18. Strong economic data was offset by concerns in the Canadian housing market as well as how rising interest rates could impact a populace burdened by record debt levels.
Investors wanting stable income in 2018 should look to dividend stocks to add to their portfolios. Let’s take a look at some of my favourites for the coming year.
Telus Corporation (TSX:T)(NYSE:TU) has climbed 4.1% in 2017 and 5.9% year over year. The company reported strong growth in its wireless customers in second-quarter results that were released on August 11. Revenue was up 11% from Q2 2016, but profits were down 7.2% due to higher operating income and costs of financing improvements. Telus is expected to release its third-quarter results on November 9, 2017.
The stock still boasts a strong dividend of $0.49 per share, representing a dividend yield of 4.4%.
Shares of Acadian Timber Corp (TSX:ADN) were down 0.53% at close on September 18. The stock is up 2.45% on the year, but it has experienced some degree of volatility as ongoing NAFTA negotiations put a question mark on the status of Canadian softwood lumber. The company released second-quarter results on July 26 and posted a decline in net sales, which Acadian contributed to a drop in price for biomass products. First-quarter results have boosted the outlook, however, and the company has still beaten expectations for the first half of 2017.
The stock offers a dividend of $0.28 per share with a yield of 5.8%.
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) stock has remained flat since posting better-than-expected third-quarter results on August 24. Profit climbed 8% to $719 million on the back of higher fees and growth in loan business, and earnings per share jumped to $2.77 from $2.67 the previous year. Capital markets saw a double-digit decline due to poor performance in Canadian markets.
Shares have declined 2.1% in 2017, and the stock still offers a dividend of $1.30 per share, representing a dividend yield of 4.8% at offering.
Private residential mortgage insurer Genworth MI Canada Inc. (TSX:MIC) has seen its stock increase 9% in 2017 in spite of the hectic Canadian housing market. Genworth posted impressive second-quarter results on August 1 that saw net income climb 65% from Q2 2016 and lower new delinquencies. Significant declines in sales should make the third quarter interesting, but real estate experts expect a bounce-back period in the fall. In any case, Genworth still offers a dividend of $0.44 per share, representing a dividend yield of 4.8%.
