4 Dynamic Companies for a 7-Digit TFSA Portfolio

There are a lot of powerful growth stocks that, if they maintain their current growth pace for long enough, could help you build a million-dollar nest egg in your TFSA portfolio.

If you have been filling up your TFSA to the brim, you could have a little over $80,000 in it right now, and though it’s not even a six-digit figure, you can turn it into a seven-digit nest egg with the right assets and enough time.

An energy stock

While wild-card assets like Crew Energy (TSX: CR) may not seem like the best option for long-term, predictable growth, they can often offer more boost in a matter of years than many consistent stocks do in a decade. The current, sector-driven post-pandemic growth of the stock is an excellent example of its powerful growth potential (under the right circumstances).

The stock fell quite a bit during the pandemic, but its growth since that time has been nothing short of phenomenal. It has grown its market value by about 2,000% since its lowest point during the crash. If you invest about $20,000 in the company when it next dips and it offers just half of its 2020-2022 growth spurt (1,000% appreciation) any time in the next two decades, you could grow your capital by $200,000 in one go.

A financial stock

TMX Group (TSX: X), the company that owns and operates most of the major stock exchanges in Canada, is a powerful long-term growth candidate. Apart from a few dips and recoveries, the stock has mostly gone up since 2010, but it has really picked up pace in the last five years. The five-year CAGR is currently 16.5%. This growth pace is quite sustainable, especially considering the company’s current valuation.

And though it may seem a bit optimistic, if the company can keep growing at this pace, i.e., increasing your capital by a margin of about 16% every year, you can amass a nest egg of well over $300,000 in the next two decades by investing $20,000 in the company. And that’s on top of the $500 you would receive every year in dividends (based on its current yield) from the company.

A golden stock

Adding a gold stock to your TFSA for stability is an intelligent idea. Still, if it’s a typical gold stock that only outperforms the market during economically harsh environments, it will weigh down the growth potential of your capital. So you have to pick a robust grower like Franco Nevada (TSX: FNV)(NYSE: FNV). The gold royalty giant in North America, with a geographically and asset-wise diverse portfolio of royalties, is one of the most powerful growth stocks in the sector.

The company returned about 364% to its investors in the last decade. If it’s capable of repeating this feat for the next two decades, you may be able to turn your $20,000 in the company to a bit over a quarter of a million.

A real estate services company

FirstService (TSX: FSV)(NASDAQ: FSV) is perhaps the most potent growth stock on this list. Ever since its inception, the stock has grown at an incredible rate, till now. Currently, it’s experiencing a dip, which makes it a perfect time to add this benevolent growth stock to your portfolio. Because even with the current 22% dip, the stock has returned about 176% to its investors in the last five years.

If it can maintain its five-year CAGR of 22.5%, it can turn a $20,000 investment into about a quarter of a million in 13 years. But even if it doesn’t perform as well as it has before, it might still be able to achieve that number in a matter of two decades.

Foolish takeaway

The four growth stocks, if they stick to the best-case scenario, can turn your $80,000 investment into a million dollars in two decades. That’s more than 12.5 times growth over 20 years. However, even if your nest egg doesn’t reach the most optimistic size, you can still likely grow it to considerable proportions with these companies.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends FirstService Corporation, SV and TMX GROUP INC. / GROUPE TMX INC.

More on Dividend Stocks

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

Telus and BCE Are Struggling: The Stock I’d Buy Instead Yields 5.8%

This Canadian stock yields about 5.8% and has a solid dividend growth history backed by a resilient business model and…

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

The Perfect Retirement TFSA Stock: A 4.8% Yield With Monthly Paycheques

Here’s why this monthly dividend stock could be an ideal addition to your TFSA if you’re looking for retirement income…

Read more »

woman relaxes with phone
Dividend Stocks

Telus Cut Its Dividend: At a 7.4% Yield, Here’s the Case for Buying Now

TELUS cut its dividend by 55%, yet shares yield 7.4%. See what the dividend reset means for income investors and…

Read more »

Real estate investment concept
Dividend Stocks

Friday’s Jobs Report Could Move Your Mortgage Rate: What to Do Before It Lands

A small rate surprise matters less when you already have written offers, payment calculations, and clear contract terms.

Read more »

dreaming of financial success
Dividend Stocks

Early-Retirement Dream? How Your Accounts Can Help You Get There

Use Canada’s registered accounts to save and invest to help realize your early-retirement dream!

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

A Perfect TFSA Stock for Retirees: Get a 5.7% Payout Each Month

Given its established business model, predictable rental income, consistent distributions, and visible growth opportunities, CT REIT could be a compelling…

Read more »

dividend growth for passive income
Dividend Stocks

New to Investing? 5 Canadian Stocks I’d Start With (and How Much)

These Canadian stocks can help build a balanced portfolio that offers long-term growth while generating income through dividends.

Read more »

Two seniors walk in the forest
Dividend Stocks

The Ideal TFSA Stock for Retirees: A 5.8% Yield Paying Constant Cash

This stock has a solid track record of dividend growth.

Read more »