3 High-Growth Stocks to Stash in Your TFSA

Since TFSA funds are always accessible, it is the perfect registered account for stashing high-growth stocks for short-term financial goals.

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In a healthy portfolio, high-growth stocks make up a sizeable portion of the overall mix. And even though it’s a good idea to spread them out in both registered accounts, if you are only going with one, it should be the TFSA. Its accessibility and flexibility make it an ideal place to stash assets that can help you meet your short-term financial goals. Plus, high-growth stocks can help you make up for the opportunity you lose due to TFSA contribution restrictions.

A funeral home and cremation company

Even though it’s headquartered in the U.S., Park Lawn (TSX:PLC) is a Canadian company and the largest one of its kind in the country. Death care is a highly fragmented business by nature, and in North America, most funeral home and cremation companies are privately owned.

Park Lawn is among the few publicly traded companies in this arena. Since it’s in both funeral homes and cremation centres, it’s well positioned to absorb the shift from conventional burials to cremation that’s rapidly taking place in North America.

Park Lawn is a very consistent growth stock, and its 10-year CAGR of 19.9% far outstrips the broad market. Its competitive edge and a modestly high valuation are strong endorsements of the sustainability of the current growth rate long term.

A real estate company

Colliers International Group (TSX:CIGI)(NASDAQ:CIGI) has been around for almost half a century. It has a diverse operational model which falls into two major business categories: investment management and professional services. The company has managed over two billion square feet and has about $51 billion worth of assets under management.

The company also has an impressive international presence as it operates in 62 countries. Its professional service portfolio is just as impressive, and it caters to investors, landlords, and tenants. The stock’s growth in the last decade has been quite impressive to say the least. Its 10-year CAGR of 25% (if the company can sustain that pace) can grow your TFSA capital by over five times within a decade.

A cargo company

Cargo transportation has become a very attractive business in the last few years, thanks to the advents of e-commerce. This makes a stock like Cargojet (TSX:CJT), the premier air cargo choice in the country, especially for time-sensitive cargo — a smart holding. And the business model is not the only promising aspect of this investment. Its performance has been off the charts as well, and the 10-year CAGR of 37.5% is among the highest on the TSX.

Currently, the stock is going through the normalization/correction phase that many other stocks went through after their rapid post-pandemic rise. It’s trading at about two-thirds of the 2020 peak price and is more attractively valued than it has been for ages. We have yet to see whether the current upward movement of the stock is permanent or temporary.

Foolish takeaway

Different investors have different bars for high growth. But if you also want a predictable and relatively stable growth stock, you may have to compromise on pace. The three growth stocks above offer a powerful combination of pace, reliability, and stability.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns and recommends CARGOJET INC. The Motley Fool recommends COLLIERS INTERNATIONAL GROUP INC.

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