2 No-Brainer Stocks to Buy for Your TFSA if the Selloff Continues

Although these two stocks aren’t that cheap yet, if the market continues to sell off, they’re two of the best to buy for your TFSA.

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Although many Canadians are constantly saving money and adding it to their TFSAs in order to buy stocks, 2022 might be the year where some of the best opportunities are available to do so.

This week, we have started to see some recovery in stocks. In general, though, the selloff has intensified all year, as inflation continues to surge, despite the Bank of Canada and Federal Reserve’s best efforts to curb rising costs in North America.

And because of the highly uncertain and risky investing environment, it’s unquestionably resulted in a lot of stocks trading cheaply.

But while there are plenty of stocks that do trade undervalued, there are several, especially high-quality companies, that aren’t yet as cheap as they could be and could certainly fall further should market conditions worsen.

Often the best TSX stocks to buy and hold in your TFSA offer the smallest bargains, because investors know they are so great. Therefore, these stocks usually take longer to fall in value.

However, if you can be patient and wait for the right price, you can buy some of the very best Canadian stocks at incredibly cheap prices.

So, if you’re willing to wait for some of the top stocks to become even cheaper, here are two of the best to keep an eye on and buy if the market correction worsens.

An incredibly defensive growth stock

If you’re looking for top stocks to buy for your TFSA, one I’d add to your watchlist immediately is Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP).

Brookfield is an incredibly resilient stock with a portfolio of some of the most defensive assets, such as utilities, pipelines, and railroad tracks, that are diversified in countries all over the world. Therefore, much of Brookfield’s revenue is incredibly robust.

In addition to this safety, though, Brookfield is also well known as an attractive long-term growth stock. It’s constantly buying these defensive infrastructure assets while they are undervalued or if it identifies assets that it can grow organically itself.

It then works to improve the cash flow these assets generate, which grows the value for shareholders. And once these assets have seen a turnaround and are much more profitable, Brookfield can look to sell them for a profit and recycle that capital into new undervalued assets it’s identified.

This is why it’s one of the best stocks to buy for your TFSA. It’s also why it hardly offers any discount, as it’s one of the most reliable stocks there is.

Should the market correction worsen, though, and even top stocks like Brookfield become caught up in the selloff, then there’s no question it would be one of the best stocks you can buy.

One of the best long-term stocks to buy for your TFSA

In addition to Brookfield, another one of the best stocks you can buy for your TFSA, and one that’s unsurprisingly not that undervalued, is Enbridge (TSX:ENB)(NYSE:ENB), trading less than 10% off its high.

Enbridge is one of the best stocks to buy for your TFSA because, like Brookfield, its operations are incredibly essential and, therefore, resilient. It has assets diversified across several different subsectors of energy, which helps to lower risk even more.

And because it earns massive amounts of cash flow, Enbridge is consistently increasing its dividend and investing in new growth potential, such as projects in the renewable energy space.

Therefore, considering the stock already offers an impressive dividend yield of 6.2% today, if it was to sell off significantly as the market correction picked up, there’s no question it would be one of the best stocks you could buy for your TFSA.

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 Daniel Da Costa has positions in Brookfield Infra Partners LP Units and ENBRIDGE INC. The Motley Fool recommends Brookfield Infra Partners LP Units and Enbridge.

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