TFSA Investors: 3 Canadian Stocks to Own for 30 Years in Your Retirement Fund

Canadian Natural Resources (TSX:CNQ) (NYSE:CNQ) and another two market leaders deserve to be on your TFSA radar. Here’s why.

| More on:

Canadian investors are searching for reliable stocks to add to their TFSA retirement portfolios.

Let’s take a look at three companies that are market leaders with growing businesses that should deliver strong returns for decades.

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ)

CNRL is a giant in the Canadian energy sector with assets that span a full range of the oil and gas spectrum. The company is Canada’s largest independent natural gas producer in the country and the top heavy crude oil producer. It owns both oil sands assets and conventional oil facilities, with light and heavy crude oil operations. Natural gas liquids and key infrastructure assets round out the Canadian portfolio.

Internationally, CNRL has operations in the U.K., the North Sea and offshore Africa. The company’s average production is more than 1.05 million oil equivalent barrels per day.

The recovery in oil prices is boosting cash flow available for dividends and share buybacks. CNRL raised its dividend by 22% for 2018. The current yield is 3.2%.

The diversified asset base and strong balance sheet give CNRL the flexibility to allocate capital to the highest return opportunities in the portfolio as market prices shift. During a downturn, CNRL has the means to add strategic assets at attractive prices.

Nutrien (TSX:NTR)(NYSE:NTR)

The merger of Potash Corp. and Agrium created a crop nutrients giant, now called Nutrien. The company is a major player on the global fertilizer stage with world-class potash, nitrogen, and phosphate production facilities. In addition, Nutrien has a global retail business that sells seed and crop protection products.

Fertilizer prices are improving after a multi-year slump and Nutrien continues to grow. The company acquired additional retail assets earlier this year and is expanding its presence in the digital space through the recent takeovers of Agrible and Waypoint Analytical.

Nutrien pays a quarterly dividend of US$0.40 per share, which is good for a yield of 2.8%. As crop nutrients prices continue to strengthen, Nutrien has the potential to be a free cash flow machine. Investors should see dividend increases in 2019 and beyond.

Toronto-Dominion Bank (TSX:TD) (NYSE:TD)

TD has a long track record of rewarding investors with rising dividends. In fact, the company’s compound average annual dividend growth rate over the past two decades is better than 10%. In 2018, TD raised the payout by close to 12%.

The large U.S. operation should continue to support earnings growth, as lower taxes and rising interest rates provide a tailwind for results. In Canada, a potential housing pullback could impact growth in the coming years, but TD’s mortgage portfolio is more than capable of riding out a downturn.

At the time of writing the dividend provides a yield of 3.5%.

The bottom line

CNRL, Nutrien, and TD are all leaders in their respective industries and should be solid buy-and-hold picks for a TFSA retirement fund.

Other top stocks in the market are also worth considering today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Andrew Walker owns shares of Nutrien. Nutrien is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

A meter measures energy use.
Dividend Stocks

Is Fortis Stock a Buy, Sell, or Hold for 2025?

Fortis has increased its dividend annually for the past five decades.

Read more »

analyze data
Dividend Stocks

3 Dividend Stocks That Are Screaming Buys in November

Here are three top dividend stocks long-term investors won't want to ignore during this part of the market cycle.

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

Generate $175/Month in Passive Income With a $30,000 Investment

Dividend aristocrats offer reliability, and many of them also offer generous yields. With sizable enough discounts, these yields can become…

Read more »

dividends can compound over time
Dividend Stocks

Best Dividend Stocks to Buy Now for Canadian Investors

These three stocks would be excellent additions to your portfolios, given their solid underlying businesses, consistent dividend growth, and healthy…

Read more »

data analyze research
Dividend Stocks

3 Undervalued Stocks to Watch in November

Not all undervalued and discounted stocks are destined or poised to make a comeback soon, and a protracted timeline can…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

The Perfect TFSA Stocks for Long-Term Growth

Two industry heavyweights are perfect stock holdings in a TFSA for long-term money growth.

Read more »

Make a choice, path to success, sign
Dividend Stocks

Is Fortis Stock a Buy for its Dividend Yield?

Fortis has increased the dividend for 51 consecutive years.

Read more »

Middle aged man drinks coffee
Dividend Stocks

Is Brookfield Stock a Buy, Sell, or Hold for 2025?

BAM stock recently jumped after beating earnings. But is it still a buy, or is it better to wait?

Read more »