Planning to Invest? 3 Top TSX Stocks to Buy in Your TFSA

TFSA investors should look to add at least one of these three top TSX stocks to their portfolios in 2022.

With the Canadian stock market currently going through a downturn, now’s the time to be investing in TSX stocks. The S&P/TSX Composite Index is only trading down a couple percentage points on the year, but many top Canadian companies are trading at a loss far greater than that in 2022.

The downturn in the market has come at a perfect time for Tax-Free Savings Account (TFSA) investors. With plenty of top TSX stocks on sale, TFSA investors shouldn’t have much trouble maxing out their $6,000 contribution limits in 2022.

I’ve put together a list of three growth stocks that TFSA investors would be wise to consider starting a position in this year. All three companies are trading at opportunistic discounts right now, so I’d act fast. I don’t think it will be long before the three growth stocks are back to all-time highs.

Now’s the time to be investing in renewable energy

If you’re a long-term investor and are bullish on the rise of renewable energy, you’ll want to take advantage of these bargain prices. The renewable energy sector as a whole has been largely trailing the Canadian market’s returns since early 2021. As a result, there are plenty of top green energy stocks that are currently trading far below all-time highs.  

I’m already a shareholder of Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP), but I may be adding to my position very shortly. Shares are now down more than 30% from 52-week highs. Still, the TSX stock is up a market-crushing 90% over the past five years. And that’s not even including the company’s impressive nearly 4% dividend yield. 

At an annual dividend of $1.55 per share, whether you’re interested in growth or passive income, this TSX stock has you covered.

A high-growth TSX stock trading at a bargain price 

After the release of a short report in December, shares of Nuvei (TSX:NVEI)(NASDAQ:NVEI) dropped an incredible 40% in a single day. But after finally bottoming out in mid-December, the tech stock seems to be back to delivering market-beating gains.

The tech sector has been hit particularly hard during this recent downturn. Nuvei may have rebounded well from its steep selloff in December, but the tech stock is still trading much lower than where it was half a year ago.

Even with the current discount, Nuvei is not a cheap stock from a valuation perspective, so I wouldn’t expect volatility to slow down anytime soon. But if you’re willing to be patient and hold for the long term, I’d bank on many more years of market-beating growth for this young tech company.

An under-the-radar TSX stock for growth investors

goeasy (TSX:GSY) may be one of the top growth stocks that you’ve never heard of. 

The consumer-facing financial services company has quietly put together an impressive track record of market-beating gains. The TSX stock is a four-bagger over the past five years and a 20-bagger over the past decade.

Growth has slowed in recent years, but goeasy is still far outpacing the returns of the Canadian market. Shares are up more than 50% over the past year compared to the broader market’s return of just 15%.

Now down close to 30% from all-time highs, TFSA investors should have this under-the-radar growth stock at the top of their watch lists.

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 Nicholas Dobroruka owns Brookfield Renewable Partners. The Motley Fool owns and recommends Nuvei Corporation.

More on Stocks for Beginners

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Stocks for Beginners

2 Top TSX Growth Stocks to Stash in a TFSA for Life

These two growth stocks may not be the top in the last month, but in the last few years, they…

Read more »

people relax on mountain ledge
Dividend Stocks

Invest $10,000 in This Dividend Stock for a Potential $4,781.70 in Total Returns

A dividend stock doesn't have to be risky, or without growth. And in the case of this one, the growth…

Read more »

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

How to Turn a $15,000 TFSA Into $171,000

$15,000 may not seem like a lot, but over time that amount can balloon into serious cash.

Read more »

A worker uses a double monitor computer screen in an office.
Stocks for Beginners

Why I’d Buy Fairfax Financial Stock Even at Today’s Prices

Fairfax stock just keeps edging higher. But is it now too expensive, or can investors just look forward to even…

Read more »