TFSA Investors: 2 TSX Stocks for a Legit Shot at $1 Million in 20 Years

These two TSX stocks are the perfect buy for those who can invest a little at a time, year after year, and reach $1 million by 2043!

| More on:
Couple relaxing on a beach in front of a sunset

Image source: Getty Images.

The Tax-Free Savings Account (TFSA) is one of the best ways to create income. But if you want to reach $1 million in 20 years, those investments need to be solid ones. TSX stocks that have decades of growth behind them, and even more in the future, are your safest bet. So today, I’m going to look at two blue-chip TSX stocks that will give you a legit shot at becoming a millionaire over 20 years.


BCE (TSX:BCE) has decades of growth behind it, and remains the largest of the telecommunications companies by market capitalization. But just because it’s been around a long time doesn’t mean it’s old news. In fact, BCE stock has been touted as providing the fastest internet speeds. And that certainly means something during its 5G rollout.

BCE stock also has a stellar dividend among TSX stocks. That dividend is currently at 6.32% as of writing. Further, shares are up 131% in the last decade alone. That’s a compound annual growth rate (CAGR) of 8.75%, with the dividend at a CAGR of 5.18% during that time.

Brookfield Renewable

Another strong option is Brookfield Renewable Partners LP (TSX:BEP.UN), which has the benefit of being in the renewable energy sector. This is not only one of the TSX stocks that’s seen growth in the last few decades, but with diversified investments in assets around the world, it has even more coming its way.

BEP stock also has a strong dividend yield at 4.88% as of writing. That dividend has risen at a CAGR of 9.33% in the last decade. Further, it has grown 285% in the last decade alone, for a CAGR of 14.5%. And that’s very likely to occur again as the world shifts to renewable energy.

Make $1 million

So, you’ll invest in these TSX stocks over the next 20 years. You’ll reinvest dividends, and continue adding to your contribution at $3,000 per stock year after year. So you’ll need to create $500,000 in each stock in 20 years.

First, let’s look at BCE stock in which you’ll need to invest in 365 shares for a total cost of $22,265 with annual $3,000 contributions.

Shares OwnedAnnual Dividend Per ShareAnnual DividendAfter DRIP ValueYear-End Shares OwnedYear-End Stock PriceNew Balance

Finally, here’s the tally for the Brookfield stock, of which you’ll need 145 shares costing just $5,401.25 with annual $3,000 contributions.

Shares OwnedAnnual Dividend Per ShareAnnual DividendAfter DRIP ValueYear-End Shares OwnedYear-End Stock PriceNew Balance

In total, you’ll have $1.06 million in 20 years!

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 Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Happy diverse people together in the park
Dividend Stocks

Gen Z Investors: How to Make $2.8 Million Before Retirement

Gen Z investors have one thing to their advantage: time. Invest wisely and practically any investment could turn into millions.

Read more »

A plant grows from coins.
Dividend Stocks

The 2 Top Monthly Dividend Stocks for March 2023

These are the top two monthly dividend stocks you can buy in Canada in March 2023.

Read more »

Canadian Dollars
Dividend Stocks

Got $6,500? Earn $48/Month Tax-Free Passive Income

High-dividend-paying Canadian stocks include Diversified Royalty. Let's see how a TFSA investment of $6,500 can help you earn $48 in…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Need $100? The Best Dividend Stocks for Monthly Income

Here are two of the best monthly dividend stocks you can buy in Canada right now for passive income.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

TFSA Investors: Make $100 Per Month With This TSX Dividend Stock

This top TSX dividend stock could help you earn $100/month in tax-free, passive income.

Read more »

Wireless technology
Dividend Stocks

2 TSX Stocks I’d Buy With a Tax Refund

If you have a tax refund coming your way, these two TSX stocks could provide you with stellar long-term income…

Read more »

man window buildings
Dividend Stocks

How to Invest in Retail Stocks When Everyone’s Talking About a Recession

Canadian retail stocks like grocery stores provide stable performance. If you like more yield, you can seek an entry point…

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

The 3 Industrial Stocks That Keep Canada’s Economy Going

Three industrial stocks with solid fundamentals are safer options in the current market environment and should add stability to your…

Read more »