3 Canadian Stocks That Could Double Your TFSA

A fully stocked TFSA might not match a fully stocked RRSP on contributions alone, but you can give your TFSA a boost with powerful growth stocks.

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Many Canadian stocks are capable of doubling your capital. The defining traits are the timeline and predictability. Some stocks might be able to double your capital in a decade by growing at a steady pace of around 10% a year (on average), while others may double your TFSA funds within two or three years, thanks to a growth spurt triggered by certain market conditions.

A healthy combination of both types (and others) would do well in your TFSA.

A graphene company

Investing in technologies that currently seem promising but have not yet been scaled up for mainstream use is not very prudent, but the payoff can be huge. An example would be NanoXplore (TSX:GRA) — a Graphene company in Canada. Graphene is almost a revolutionary material with a lot of potential, and, so far, we have barely scratched the surface of what we can achieve with it.

It has potential applications in a lot of areas, including a clean and green future. Graphene-based superconductors can be used for the next generation of electronics and even EVs. Electronic sensors that use graphene are already being used.

The stock saw a massive rise in the post-pandemic market and grew over 400% in fewer than 15 months. Then it went into the correction phase, and after falling over 57%, it’s surging again. It might double your capital in this growth phase alone, but holding it long term might yield more promising returns.

An alternative financial company

goeasy (TSX:GSY) is the perfect example of a predictable stock that can double your investment capital in less than a decade. The stock was a steady and powerful grower, which saw its capital-appreciation potential supercharged after the pandemic. However, the stock has already gone through a correction phase, which triggered a 41% fall and is growing again.

If the stock starts growing at its usual pace, it will most likely double your TFSA funds in fewer than three years. It’s also a great buy for its dividends because even though the 2.6% yield might not look very promising, the rate at which goeasy is raising its dividend is.

Another reason to consider this stock for your TFSA portfolio would be its extremely attractive valuation. It’s currently trading for a price-to-earnings multiple of just 9.6.

A recreational products company

Bombardier Recreational Products (TSX:DOO)(NASDAQ:DOOO) has about eight different brands to its name (nine if you count one brand’s off-road/on-road products separately) with an extensive product range. It makes snowmobiles, go-carts, boats, ATVs, etc. As a leader in its industry, Bombardier offers a major competitive edge.

However, since all of its products are tied to discretionary spending, it’s prone to suffer from economic meltdowns. Still, the cyclical nature of the stock offers relatively short-term growth bursts that may be enough to double your capital if you buy at the right time.

Since 2016, the stock has gone through three major growth phases and returned over 300%, 100%, and 460%, respectively.

Foolish takeaway

It’s difficult for your TFSA to compete with your RRSP on contributions alone. However, you can give your relatively smaller TFSA funds a great boost with stocks that are capable of doubling your capital well within a decade. You can essentially double the size of your TFSA by leveraging these stocks.

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 has no position in any of the stocks mentioned.

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