The Motley Fool Canada »Dividend Stocks» TFSA Limit for 2021 at Nov.$ 000 raised: 2 top stocks for immediate purchase

Andrew Walker | 1 January 2021 | More on: CNQ TRP CNQ TRP

The tax-free savings account (TFSA) A limit increase for 2021 is 6$ 000 cash investors are wondering which top stocks should be on their TFSA buy list

The US. Markets are hovering near record highs to start in 2021, and the TSX index is near the 12-month high it hit just before the pandemic crash of aggressive government interventions to businesses and households in 2020 financial support, which led to a dramatic rebound in stock markets The success of COVID vaccines is largely responsible for the sustained surge in recent months

At the start of 2021, the broader stock market appears to be fully valued, if not overbought, with investors predicting that the introduction of vaccines will open the economy and lower unemployment in the months ahead, but it is likely to do so the good news is already being priced into stocks today

Given the high valuations, investors should prepare for a meaningful correction over the next few months. Pursuing 2020’s big winners at current prices could be risky

Even so, many of the top hits in 2020 remain oversold.Some of these names offer attractive dividends and could get extremely cheap if the market pulled back

Let’s take a look at two stocks that are already reasonably priced and should be good choices for a TFSA investment in 2021

Canadian Natural Resources Limited is best known for its oil production, but the company is also a major producer of natural gas. Natural gas prices avoided the major oil crash of 2020 and helped CNRL weather the downturn

Oil prices rebounded through late 2020, and West Texas Intermediate (WTI) oil is now trading near $ 48 a barrel, CNRL’s operating breakeven price is close to the WTI at $ 30, so the oil exploration business has the potential to generate reasonable profits at current oil prices, the company increased its projected capital program when it released the 2021 budget last month, meaning management is positive about cash flow

CNRL pays an attractive dividend that should be safe and offers a 5.5% yield. At the time of writing, TFSA investors can buy the stock close to $ 31. Its shares traded for $ 41 a year ago, which is at a World economic recovery has a decent upside potential

TC Energy (TSX: TRP) (NYSE: TRP) usually hits the headlines when news emerges of the troubled Keystone XL pipeline development in the U.S. The Obama administration has canceled the project Trump gave the go-ahead to but Joe Biden is likely to kill it again

While Keystone XL is a large project, it is only part of TC Energy’s extensive development portfolio that includes natural gas transmission and power generation initiatives. In fact, TC Energy continues to advance industry-leading projects with $ 37 billion in secured capital

Cash flow should increase steadily as new assets go live.TC Energy plans to increase dividend 8-10% through 2021 and distribute increases in 2022 and beyond should be in the range of 5-7% which are great News for TFSA investors looking to generate dependable and growing income from their holdings

TC Energy appears to be oversold near $ 52 per share, and the dividend is yielding a 625% return at that price. The stock’s 12-month high is above $ 76. It wouldn’t be a surprise if TC Energy is in Would return back to $ 65 per share in 2021

CNRL and TC Energy are looking pretty cheap right now Companies are industry leaders and are paying attractive dividends If you have cash to spend to raise the TFSA limit in 2021, these stocks deserve to be on your radar

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TFSA limit 2021

World news – CA – TFSA limit for 2021 at 6$ 000 raised: 2 top stocks available for immediate purchase