Top TSX Stocks for a $7,000 TFSA Investment in February 2024

Canadian investors are seizing the opportunity in 2024, looking to maximize their self-directed Tax-Free Savings Account (TFSA) with a $7,000 limit. The recent pullback in TSX dividend stocks is creating a fertile ground for income investors and those eyeing total returns. Here's a closer look at three top stocks worthy of consideration for your TFSA in 2024.

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1. Telus (TSX:T)

Despite challenges faced by its international subsidiary, Telus, currently priced near $24, delivered solid results in 2023. The drop from the 2022 high of $34 to the current level appears exaggerated. Telus anticipates free cash flow growth, supported by robust performance in core mobile and internet subscription businesses. With divisions like Telus Health and Telus Agriculture and Consumer Goods holding promising potential, Telus stands apart with a 6.2% dividend yield and a dividend-increasing history spanning over two decades.

2. Enbridge (TSX:ENB)

Enbridge, trading near $46.50, has maintained stability with 2023 earnings matching the previous year and meeting guidance. Anticipated growth in distributable cash flow in 2024 supports the company's impressive track record of raising dividends for 29 consecutive years. With a $25 billion capital program in play and a significant US acquisition on the horizon, Enbridge offers investors a 7.9% dividend yield, potentially poised for an upswing as interest rates adjust.

3. Bank of Nova Scotia (TSX:BNS)

Trading around $64 per share, Bank of Nova Scotia presents an intriguing option for investors with a contrarian mindset. Despite a 15% recovery from the 2023 low, the stock is still notably below its early 2022 peak of $93. The bank, under new leadership, is realigning growth investments, shifting focus from South American operations to concentrate on Canada, the United States, and Mexico. With a solid 6.6% dividend yield, investors have the opportunity to benefit from potential future rebounds.

The Verdict: A Trio of Dividend Prowess

Bank of Nova Scotia, Enbridge, and Telus emerge as compelling choices for Canadian investors eyeing dividends within their TFSA. These stocks, offering attractive dividends set for growth, showcase resilience amid market fluctuations. If a contrarian investment style aligns with your strategy, these oversold stocks present an enticing opportunity for a long-term hold in your TFSA or Registered Retirement Savings Plan focused on dividends.


As the Canadian stock market continues its journey, strategic selections like these can provide a steady income stream while positioning investors for potential capital appreciation.
Location: Canada

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