The stock market is a great way for the everyday person to generate enough wealth to help them get through retirement comfortably. However, in order to do that, investors will need to be very prudent about what they do in the stock market and only make moves that follow extensive research on certain companies. In addition, by investing in tax-advantaged accounts like a Tax-Free Savings Account (TFSA), investors can help accelerate their way to their retirement goals.
In this article, I’ll discuss two TSX stocks that could help put you in the right direction. I believe both of these stocks have massive potential and could heavily reward shareholders over the next decade or so. Keep reading if you’re interested in two stocks that could turn your retirement dreams into reality.
Invest in this outstanding blue-chip stock
When investors look for stocks that have a lot of growth potential, they often turn to the tech sector. I’m doing no different here and suggest that the first company that TFSA investors should look at be Constellation Software (TSX:CSU). For those that are unfamiliar, this company acquires vertical market software (VMS) businesses. Upon acquisition, Constellation Software provides resources and coaching required to help the businesses become exceptional business units within Constellation Software’s ecosystem.
Since its initial public offering, Constellation Software stock has been a massive winner. It has gained nearly 15,300% since 2006. That represents a compound annual growth rate of about 34.5%. Although the stock has grown so much over the past 17 years, it’s showing no signs of slowing down. Over the past year, Constellation Software stock has gained 35.7%. I believe this company could continue to put up numbers like that for years to come. If you want a stock that could greatly accelerate your TFSA, Constellation Software is the way to go.
This company still has a lot of room to grow
Investors should also give Shopify (TSX:SHOP) another look. For the first five years of this company’s existence on the public markets, it was one of the hottest stocks around. One of its brightest claims to fame was landing on the TSX30’s top spot in 2020. At the time, Shopify had gained more than 1,000% over a running three-year period. That was nearly the same amount of gains generated by the next top three stocks combined.
In 2022, Shopify investors suffered difficult times. The company laid off more than 10% of its workforce, and the stock saw a drop of more than 80%. However, despite those troubles, the company continued to move along. Shopify continued to grow its revenue and maintain a large share of the global e-commerce industry. Now that the economy is starting to look better again, investors have started to return to this growth stock. Over the past year, Shopify stock has gained more than 84%.
As the global e-commerce industry continues to grow, I believe Shopify could have a very bright future ahead.
