TFSA Investing: Make money, even when the market is down

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Market sentiment has not been positive lately. Higher than normal inflation rates and central banks raising interest rates to curb inflation are some of the heavy burdens on the markets. Oh, and there are still supply chain issues.

The heaviness on the market could continue for some time, possibly until 2023. However, TFSA investors should keep in mind that market dips have been temporary in the past. Therefore, they should have hope that the market will recover and rise again.

TFSA investors should focus on investing as usual and focus on creating wealth for the long term. Some discount brokers, such as Wealthsimple, offer commission-free trading, which allows investors to invest as little as $1. The more you invest, the more money you can make. For example, if you contribute and invest $500 per month into your TFSA for 10% annually, you will accrue $1,031,421.77 in 30 years.

Stocks are intended for long-term investment. Even when the market is down, strong dividend stocks can still make you money (in the form of dividend income), while providing better sleep and peace of mind for investors.

Here are some high-yield stocks to consider.

Algonquin stock

Algonquin Energy & Utilities (TSX: AQN) (NYSE: AQN) offers a good balance of stability and growth as about 70% of its portfolio consists of regulated utilities and 30% of unregulated renewable energy, including wind, solar, hydro and thermal. generation. Its organized facilities vary across nature
Gas, electricity and water.

Utility stock can be a good buy on the dip for those seeking stable returns from dividend income. At $17.52 per share, it offers a return of approximately 5.5%. Analysts generally like dividend stocks, too. They have an agreed 12-month price target that represents a 24% upside potential in the near term.

In particular, earlier this month, Ryan Bushell, president and portfolio manager at Newhaven Asset Management, picked the stock as one of his top picks. BNN:

“They’re currently buying Kentucky Power. The stock has been in the $17-20 range for a long time after a lot of growth, but he thinks it’s holding up and waiting for the next stage up… It’s flat – it won’t fire immediately but will do 10-15 years later. .”

Nova Scotia Share Bank

Large Canadian banks including Bank of Nova Scotia (TSX: BNS) (NYSE: BNS), very good for passive income that grows over time. Scotiabank has been hit the worst in today’s environment, but its dividend is still safe, with its payout ratio still good. The shares sold pushed the dividend yield nearly 5.8%.

If you can stand the fluctuations of the market, you get good returns on profits. And certainly, in the long run, you can expect prices to rise as well when BNS economies improve. Its primary markets are Canada, the United States and the Pacific Alliance regions – namely, Mexico, Peru, Chile and Colombia.

If you imagine a market pullback as temporary and your strong dividend stocks recover in the future, you should feel more comfortable in a volatile market. Remember that you are making a profit from the dividends, even if the market is going to drop further in the near term.

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