3 Top TSX Stocks to Add to Your TFSA or RRSP Right Now

Long-term investors should have these three TSX stocks at the top of their shopping lists this holiday season.

| More on:
Piggy bank wrapped in Christmas string lights

Source: Getty Images

Just when we thought there was hope to end the year in positive territory, Canadian stocks started plummeting again. The S&P/TSX Composite Index managed to jump close to 10% between early October and the end of November. But after a rough couple of weeks to start December, the market as a whole is now down just about 10% on the year. 

It’s been incredibly difficult this year to keep up with the sentiment in the market. Spiking interest rates and inflation have been major themes in 2022, which have created one of the most volatile market periods we have witnessed in years. 

As far as I’m concerned, 2022 has been an excellent reminder as to why it pays to have a long-term mindset. Investing for short-term gains is hard enough in the easiest of conditions, let alone in today’s harsh market conditions.

Loading up on stocks in your TFSA and RRSP

Long-term investors have the luxury of taking advantage of volatile years like this one. The market may only be down 10% on the year, but there are loads of high-quality stocks trading at losses of much more than that.

The Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) are two great options for anyone interested in owning stocks for the long haul. And with 2023 around the corner, Canadians will soon be able to begin working towards maxing out their 2023 contribution limits.

Here are three top TSX stocks that long-term investors would be wise to have on the radar heading in 2023.

Shopify

It’s hard to believe that Canada’s largest company not that long ago is now down close to 80% from all-time highs. Shopify (TSX:SHOP), alongside many other high-flying tech stocks, has been riding a steady trend downwards since late 2021. 

The business itself is still in solid shape. Revenue growth may be slowing, but Shopify continues to hold a top global position in the growing e-commerce space. 

Even with a nearly 80% selloff, shares are still up more than 250% over the past five years. Now could be an incredibly opportunistic time to start a position in this top tech stock.

Brookfield Asset Management

It’s never a bad time for a long-term Canadian investor to buy shares of Brookfield Asset Management (TSX:BAM).

The global asset management company is as well diversified as a stock you’ll find on the TSX. And despite the broad portfolio of assets that Brookfield Asset Management owns, delivering market-beating returns is certainly not out of the question.

Growth investors in need of diversification should have this TSX stock on their watch list.

Toronto-Dominion Bank

Everyone could benefit from a little extra passive income. And with many Canadian dividend stocks trading at discounts, there are plenty of top yields to choose from right now. 

At a market cap of $150 billion, Toronto-Dominion Bank (TSX:TD) is as dependable as a company you’ll find. The Canadian bank also boasts a growing U.S. presence, providing investors with much-needed international exposure.

At today’s stock price, the bank’s dividend yields close to 4.5%.

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 has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.

More on Investing

Dividend Stocks

The 2 Best Canadian Blue-Chip Stocks to Buy Now

Blue-chip stocks can be some of the best stocks to have in any portfolio. But when they're trending upwards, investors…

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These top dividends stocks have consistently paid and increased their dividends. Further, this trend will continue.

Read more »

Lights glow in a cityscape at night.
Investing

Canadian Infrastructure Stocks to Buy Now

These two Canadian infrastructure stocks offer interesting investment opportunities whether you’re focused on income or price appreciation.

Read more »

A plant grows from coins.
Tech Stocks

3 Growth Stocks Wall Street Might Be Sleeping on, But I’m Not

Don’t miss your chance to load up on these three beaten-down stocks.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Tuesday, November 5

Updates related to the U.S. presidential election will remain on TSX investors’ radar today as the third-quarter corporate earnings season…

Read more »

think thought consider
Tech Stocks

Is CGI Stock a Buy Even With No Dividend Yield?

CGI stock may not have a dividend to speak of. But does that necessarily mean you should ignore this top…

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

Why Now Is the Time to Invest in Canadian AI Stocks

Are you looking for one of the most solid Canadian AI stocks out there? This one is probably your best…

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

Why AI Stocks Should Be in Every Canadian Investor’s Portfolio

AI stocks continue to be one of the best options out there for long-term investing, especially when considering Canadian options.

Read more »