Invest in These TFSA Stocks Today to Retire Well

Are you interested in a comfortable retirement? Here are three TFSA stocks you should invest in!

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IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT

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If I had to guess, I’d say that anyone interested in the stock market hopes that they’ll be able to ensure themselves a comfortable retirement. One way you could help yourself achieve that is by investing within a Tax-Free Savings Account (TFSA). As its name suggests, any gains generated in one of these accounts can be withdrawn without having to pay any additional taxes. That could allow an investor to snowball their portfolio much faster than they’d be able to do in any other account type.

In this article, I’ll discuss three TFSA stocks that investors should consider buying today if they wish to retire well.

Start with this massive stock market winner

If I could only invest in one TSX stock to hold in my TFSA, it’d be Constellation Software (TSX:CSU). For those that are unfamiliar, this company acquires vertical market software (VMS) businesses. Upon acquisition, it then provides the coaching and resources required to turn those businesses into exceptional business units within its portfolio.

For most of its history, Constellation Software has focused on small- and medium-sized VMS businesses. However, over the past couple of years, the company has begun targeting large VMS businesses for acquisition. Most recently, that was demonstrated in Constellation Software’s acquisition of WideOrbit.

Since its initial public offering (IPO), Constellation Software stock has gained nearly 15,000%. To put that into perspective, investors would’ve needed to invest less than $10,000 at its IPO to generate more than $1 million in returns. Over the past year, Constellation Software stock has gained more than 46%. That suggests that the stock isn’t close to slowing down just yet.

This company dominates the e-commerce industry

I think Shopify (TSX:SHOP) is another stock worth holding in a TFSA. A leader within the global e-commerce industry, this was once the largest company in Canada (by market cap). What differentiates Shopify among the plethora of companies similar to it, in my opinion, is the breadth of its service offerings. Shopify is capable of catering to everyone from the first-time entrepreneur to large-cap enterprises.

Earlier this month, Shopify presented the results of its first quarter earnings. During that presentation, Shopify reported that its quarterly revenue had increased 25% year over year. In addition, its monthly recurring revenue had increased 10% year over year. These are very promising numbers for a company that many investors seem to have already written off due to its recent stock performance. I think the sky is the limit for this outstanding stock.

Another stock worth considering

Finally, I think investors should consider Bank of Nova Scotia (TSX:BNS) stock. Obviously, this is a very different company than the other two mentioned in this article. I also think holding this stock could be beneficial in a different way than what Constellation Software and Shopify can offer investors. If you live in Canada, or the United States, you should know that Bank of Nova Scotia is one of the largest Canadian banks. One of the Big Five, I believe it distinguishes itself from its peers for its focus on international growth.

Unlike the two tech stocks discussed earlier, I don’t think Bank of Nova Scotia will provide massive capital appreciation over the next decade. In my opinion, its value lies in its dividend. A stable dividend distributor, this stock has been paying shareholders a portion of its earnings since 1833. That represents 190 years of continued dividend payments!

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 Bank Of Nova Scotia, Constellation Software, and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Bank Of Nova Scotia and Constellation Software. The Motley Fool has a disclosure policy.

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