TFSA Investors: 3 Stocks That Could Turn $10,000 Into $100,000

Your TFSA can be used to snowball your investment accounts. Here are three top picks!

| More on:
Arrowings ascending on a chalkboard

Image source: Getty Images.

In 2019, a study found that TFSAs were used by about 57% of Canadians. However, that same study also reported that 42% of those surveyed were using their TFSA to hold significant amounts of cash. Although that’s a viable way to ensure that your cash remains secure, it doesn’t allow Canadians to make the most use of that account.

Despite its name, Canadians can use a TFSA to buy stocks. In fact, I’d argue that buying stocks in a TFSA is one of the most important things you can do to help yourself retire comfortably. By making use of this account, investors could snowball their investment portfolios much faster than they’d be able to in a taxable account.

In this article, I’ll discuss three stocks you should consider holding in a TFSA. These stocks could help you turn a $10,000 TFSA into one worth $100,000.

A top mid-cap stock

When looking for stocks that could generate massive returns, it’s imperative that you focus on small- and mid-cap stocks. This is because it’s much easier for smaller companies to grow at a fast rate than their larger counterparts. This phenomenon is known as the law of large numbers. One mid-cap stock that investors should take note of today is Topicus.com (TSXV:TOI).

Topicus is an acquirer of vertical market software companies. It focuses on the highly fragmented European tech industry. One thing that new investors may not know about Topicus is that the company has one of Canada’s most successful tech companies in its back pocket. Six members of Topicus’s board of directors are executives from Constellation Software, a successful tech company and Topicus’s former parent company. If Topicus can lean on the wealth of experience that Constellation offers, it could greatly accelerate its growth.

Digital payments could skyrocket

In today’s economy, the e-commerce industry plays a very important role. Consumers are turning to online shopping more than ever before. As that industry continues to grow, merchants will need to find adequate solutions to optimize their businesses.

With that in mind, Nuvei (TSX:NVEI)(NASDAQ:NVEI) is an excellent company to consider holding in a TFSA. It provides merchants with an omnichannel payments platform. Using its platform, merchants can accept mobile, online, in-store, and unattended payments. That makes Nuvei very appealing when you consider that brick-and-mortar retailers are rapidly trying to optimize their online stores. Nuvei can provide a way for those businesses to easily connect in-store and online payments.

Consider this telehealth company

If there’s one area that Canadians should take note of, it’s the telehealth industry. Canada’s healthcare industry is very outdated and requires a major overhaul. Innovations within the telehealth industry could help change the way we do healthcare today. That makes WELL Health Technologies (TSX:WELL) a very interesting company.

It not only provides telehealth services to patients, but it offers apps that other telehealth providers can use to optimize their own offerings. By playing both sides of the telehealth field, WELL Health puts itself in an excellent position to succeed.

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 Jed Lloren has positions in Topicus.Com Inc. The Motley Fool has positions in and recommends Nuvei Corporation and Topicus.Com Inc. The Motley Fool recommends Constellation Software.

More on Investing

Business man on stock market financial trade indicator background.
Tech Stocks

1 Growth Stock Down 50 Percent to Buy Right Now

There are plenty of growth stocks in the market worth considering, but Shopify (TSX:SHOP) looks like one of the best…

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

edit Sale sign, value, discount
Stocks for Beginners

These 3 Growth Stocks Are on Sale and Set to Surge

Some growth stocks are on sale right now that offer massive long-term potential for investors. Here's a trio to consider…

Read more »

Cannabis grows at a commercial farm.
Cannabis Stocks

Why Canopy Growth Stock Could Double in 2024

Canopy Growth (TSX:WEED) stock saw its share more than double in the last two weeks. So, can it do it…

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »