Kalkine Media explores 5 TSX stocks to watch for TFSA

Highlights

• In Q3 2022, Waste Connections’ net income was US$ 237.12 million.
• On September 1, 2022, TELUS acquired LifeWorks Inc.
• goeasy's revenue in Q3 2022 was C$ 262.21 million.

Investors focus on maximizing their gains and earning profits. With market uncertainties, most of them are redirected toward a long-term goal. TFSA (Tax-Free Savings Account) is one such option preferred by investors working on their retirement funds. TFSA offers features of paying zero tax on investment income. Reportedly, the federal government increased the TFSA’s 2023 contribution limit by an additional US$ 500. This made the total TFSA contribution US$ 6,500 w.e.f. January 1, 2023.

Currently, the market is dealing with several uncertainties in the form of interest rates and inflation, etc. Amid this, make way for a balanced portfolio by coping with these factors in a pragmatic approach. Along with the financials, consider the growth potential and company valuations as well.

Additionally, TFSA offers tax-free withdrawals as well. Hence, consider the time factor as well while adding up stocks to your account. Your portfolio reflects your investment goals. Maintaining consistency and a long-term approach is crucial to your portfolio. Go for stocks that match your investment goals and facilitate a smooth investment journey.

Amid all these discussions, let us look at five stocks and analyze their recent financial performance:

1. Waste Connections Inc. (TSX:WCN)

Waste Connections is an integrated service provider of recycling services and traditional solid waste. The company caters to different markets with its recycling operations, active landfills, and transfer stations.

In Q3 2022, the company’s net income grew to US$ 237.12 million from US$ 114.65 million in the year-ago quarter. The revenue also rose to US$ 1,879.86 million from US$ 1,597.16 million for the same comparative period. The basic EPS also increased to US$ 0.92 from US$ 0.44. The adjusted EBITDA jumped to US$ 588.07 million from US$ 505.64 million. The adjusted free cash flow grew to US$ 290.59 million from US$ 240 million.

As on September 30, 2022, the company witnessed an increase in the total assets too which were reported at US$ 16.13 billion versus US$ 14.69 billion on December 31, 2021. The cash and cash equivalents also rose to US$ 200.17 million from US$ 147.44 million for the same comparative period.  

Waste Connections’ five-year dividend growth was 13.81 per cent with a quarterly dividend of US$ 0.255 per share. 

2. Fortis Inc. (TSX:FTS)

Fortis Inc. has a presence in the US and Canada for its utility transmission and distribution assets.

In Q3 2022, Fortis’ adjusted net earnings per share also rose to C$ 0.71 from C$ 0.64 in Q3 2021. The net earnings were posted with an increase at C$ 326 million versus C$ 295 million for the same comparable period. The revenue for the company grew to C$ 2.5 billion from C$ 2.1 billion. The operating cash flow declined to C$ 633 million from C$ 711 million.

The cash and cash equivalents were reported with an increase to C$ 395 million from C$ 225 million. The operating income grew to C$ 697 million from C$ 598 million. With a dividend yield of 4.23 per cent, the company distributed a dividend per share of C$ 0.565 every quarter. The EPS of the company is C$ 2.70.

3. Keyera Corp. (TSX:KEY)

Keyera Corp. is engaged in processing and gathering of natural gas and crude oil. The company operates as a midstream energy business out of Alberta.

In Q3 2022, Keyera’s net earnings rose to C$ 123.38 million from C$ 69.8 million in Q3 2021. The adjusted EBITDA also increased to C$ 246.84 million from C$ 213.57 million for the same comparative period. Keyera reported a dividend yield of 6.535 per cent. It pays a monthly dividend of C$ 0.16. The P/E (price-to-earnings) of the company was 13 with an EPS of C$ 2.26.

4. TELUS Corporation (TSX:T)

TELUS Corporation operates as a local exchange carrier and provides wireless services in Canada. The company provides television, internet, and landline phone services In Canada.

In Q3 2022, TELUS’ net income rose to C$ 551 million from C$ 358 in the year-ago quarter. The operating revenue grew to C$ 4.6 billion from C$ 4.2 billion for the same comparable period. The EBITDA increased to C$ 1,646 million from C$ 1,496 million. The free cash flow jumped to C$ 331 million from C$ 203 million.

The operating expenses of the company rose to C$ 3,875 million from C$ 3,559 million. TELUS’ basic EPS increased and was noted at C$ 0.37 versus C$ 0.25.

On October 27, 2022, TELUS International acquired WillowTree.  

5. goeasy Ltd. (TSX:GSY)

goeasy Ltd. caters to consumers with weekly or monthly leasing agreements by offering financial services to own computers, furniture, and electronics. It is also engaged in offering unsecured installment loans to consumers.

Goeasy’s revenue in Q3 2022 rose to C$ 262.21 million from C$ 219.76 million in Q3 2021. The operating income jumped to C$ 91.37 million from C$ 81.35 million for the same comparative period. The company’s EBITDA declined to C$ 105.28 million from C$ 116.69 million in the reported quarter. The EPS of the company is C$ 9.85 and the P/E ratio is 12. The dividend yield was posted at 3.085 per cent with a three-year dividend growth of 37.14 per cent.         

The total assets of GSY:

Bottom Line

While operating in the market, you are bound to encounter several uncertainties at different periods. The important aspect is to be ready for such fluctuations and factors that affect your portfolio. Especially for TFSA, be vigilant while adding your stocks. They must add value to your account and fulfill your retirement purpose.

Try to support your portfolio with diversification. Selecting a variety of stocks may spread out your risk and make you sail through rough times.

Your TFSA account should suffice for the purpose of a stable future. With proper planning, you may get the strength to deal with dynamic market trends. 

Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.