Investing in a Tax-Free Savings Account (TFSA) is very important to do. It allows investors to avoid having to pay additional taxes on any gains they generate. This could help you snowball your account much faster, allowing you to reach financial independence sooner than you think. In 2022, investors were given an additional $6,000 of contribution room to their TFSAs.
In this article, I’ll discuss three stocks that could help you make the most out of that $6,000. They could power up your portfolio.
Start with this renewable energy powerhouse
Brookfield Renewable (TSX: BEP.UN)(NYSE: BEP) is the first stock that investors should consider adding to their TFSA. This company is one of the largest producers of renewable utilities in the world. Its portfolio has a generation capacity of 21 gigawatts (GW) of power. In addition, Brookfield Renewable has 69 GW of generation capacity at various stages of development. Upon the completion of those construction projects, this company would cement its place among the leaders in the global renewable utility industry.
As an investment, Brookfield Renewable stock could interest both growth and dividend investors alike. In terms of growth, this stock has appreciated 131% over the past five years. Regarding its dividend, Brookfield Renewable is listed as a Canadian Dividend Aristocrat. The company has raised its dividend in each of the past 11 years at a compound annual growth rate (CAGR) of 6%. Regardless of your investment style, this could be a great stock for you.
A top growth stock for the future
Investors should also consider buying shares of Topicus.com (TSXV: TOI). This is a relatively lesser-known company, since it’s smaller in size and focuses its business on the European tech market. However, as a former subsidiary of Constellation Software, it’s a stock that investors should really take note of. Like its former parent company, Topicus acquires vertical market software businesses. Following an aggressive growth strategy, Topicus has already managed to acquire more than 20 businesses this year alone.
It’s important to note that a single bad acquisition could have major consequences on a company like Topicus. However, it does have the benefit of working alongside Constellation Software. That’s an advantage that many similar businesses don’t have. If Topicus can lean on Constellation’s massive wealth of experience, it could avoid some of the crucial mistakes that tend to plague newer holding companies.
This company still has a lot of room for growth
Finally, I still firmly believe that Shopify (TSX: SHOP)(NYSE:SHOP) will be a much bigger company in 10 years’ time than it is today. The e-commerce industry has shown massive growth over the past five years. As future generations of consumers continue to shift towards online shopping, companies that help merchants operate in that space could see massive growth.
In my opinion, Shopify separates itself from similar companies due to its extensive enterprise partnership network. The company gives its merchants every opportunity to appear in front of consumers, whether their preferred platform to sell is on Meta Platforms, Spotify, YouTube, or many others. Heavily reliant on a subscription-based business, Shopify’s monthly recurring revenue has grown at a CAGR of 35% over the past five years. I believe we’re still in the very early stages of this company’s growth trajectory.
