SHOP:CC - Build Your Retirement Fortune With These Top TFSA Stocks
2023-07-26 09:00:00 ET
It is no secret that a Tax-Free Savings Account (TFSA) is one of the best ways to build a retirement fund. This is because both contributions and withdrawals are tax-free, along with having no mandatory withdrawal policies. Thus, investors can let their money grow for the long term and take care of their post-retirement expenses whenever needed.
Now, for this strategy to be successful, buying the right stocks is also essential. Investors should select companies which can facilitate long-term capital appreciation.
Here are the top three TFSA stocks that investors can consider adding to their portfolios.
Shopify
Shopify ( TSX:SHOP ) is a Canadian international e-commerce platform that allows merchants to market their products from various online and offline sales channels. In early June, Shopify completed the sale of Shopify Logistics to Flexport. In exchange, the organization has received a 13% stake in Flexport, adding to its already existing equity interest in the latter.
Moreover, Shopify reported excellent results in its first-quarter (Q1) earnings report, resulting in a significant bounce in its stock price. It’s notable that Shopify hasn’t given up these gains, yet. That’s probably because investors were excited to see 35% revenue growth, reaching US$1.5 billion in comparison to last year’s figures. The driving factors behind these figures were a rise in Subscriptions Solutions Revenue and Merchant Solutions Revenue, which appreciated by 11% and 31%, respectively.
Constellation Software
Constellation Software ( TSX:CSU ) is a Canada-based multinational vertical market software provider. As of June 2023, the company’s stock price has grown by 159% in the last five years. In the aforementioned period, this indicates an annual share price rise of 21%, along with 14% annual earnings-per-share growth.
There are many reasons why Constellation continues to be among the best compounders in the Canadian tech sector. This conglomerate engages in a growth-by-acquisition strategy, essentially funnelling the best small- and medium-sized software players under its umbrella. The success of its strategy over the long term can’t be debated, and this remains among the best technology and growth stocks Canada has to offer.
The Metals Corp.
The Metals Corp. ( NASDAQ:TMC ) is a Canadian organization that deals in deep-sea minerals exploration. It primarily focuses on excavating manganese, cobalt, copper and nickel, along with refining them for use in the renewable energy storage and electric vehicle (EV) market.
TMC continues to search for sustainable options in how nickel and other key metals are mined. The company says that in the Clarion Clipperton Zone (CCZ), nickel ore is present in the form of nodules and in far greater quantities than on land. It plans to vacuum them off the seafloor using ships, which can carry up to 30,000 metric tons.
Additionally, mining nickel from the sea floor leads to less waste as the metal content in these nodules is higher. Now, nickel is one of the most in-demand metals when it comes to manufacturing EV batteries. Thus, TMC can leverage this factor and sustainably scale its operations in the long run.
The post Build Your Retirement Fortune With These Top TFSA Stocks appeared first on The Motley Fool Canada .
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy .
2023