This teacher and his wife have guided their TFSAs to $2-million and tax-free dividends of $15,000 a month thanks to energy stocks

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Expert says the couple could take on the higher risk with their strategy because they have secure jobs and good pensions, but others should not take on this type of risk unless they are using money they can afford to lose

This teacher and his wife have guided their TFSAs to $2-million and tax-free dividends of $15,000 a month thanks to energy stocksThis is TFSA Trouncers, a series that profiles Canadian investors who’ve accomplished incredible feats with their tax-free savings accounts. If you have grown your TFSA to half a million dollars or more, drop us an e-mail at. You may choose to be anonymous, but we do require an e-mail address and we may request a screengrab of your portfolio for fact-checking purposes.

Several months before buying the stocks, Paul had browsed investment websites, corporate presentations, quarterly reports, industry publications and other sources in the energy sector. He thought oil and gas stocks would be good a good place to invest because they were very cheap., but then figured smaller companies with lower stock prices would potentially represent a better investment in terms of percentage growth,” recalled Paul.as the company I wanted to focus on,” Paul added.

Paul put $69,500, the cumulative contribution limit for his TFSA at the time, into Peyto. Weeks later, the $69,500 in his wife’s TFSA was invested in the shares of Crew Energy Inc. He also thinks the switch to more environmentally friendly sources of fuel will not happen as soon as some people expect. “I think that natural gas will continue to be in demand at least for another 10 to 15 years,” Paul states.

“We do plan to invest in other sectors at some point over the next few years,” adds Paul. Utilities and REITs have been on the radar. But they are in no rush to buy. While the recent decline in interest rates may give a lift to REITs, their payouts “are not great when you look at their yield.

 

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