TFSA Investors: Where to Invest $7,000 in 2024

Consider Alimentation Couche-Tard (TSX:ATD) and another top growth play for a long-term TFSA growth fund.

| More on:
TFSA and coins

Image source: Getty Images

With the Canadian stock market inching closer to all-time highs, questions linger as to what the next move of Mr. Market will be once it tests record levels. Undoubtedly, the U.S. markets have been red hot of late, thanks in large part to the scorching tech sector. In Canada, the tech sector isn’t nearly as influential.

In fact, the TSX Index is far lighter weight in tech than many passive investors would like. That’s not to say Canada’s tech sector should be ignored or overlooked, though. If you’re a stock picker, I find some of the Canadian tech titans to be more than worth checking out if you’re looking for a candidate to put your latest Tax-Free Savings Account (TFSA) contribution to work.

For 2024, you’ll have an extra $7,000 to invest. And I think there’s no better time to put it to work than now, even if the broader TSX Index struggled to sustain any sort of break out past its high. Indeed, there are plenty of quality growth companies that don’t need the TSX to surge in order to do well in 2024 and beyond.

Without further ado, let’s have a closer look at two TFSA growth picks that may be worth watching (or even nibbling) over the coming weeks and months. Let’s look at one low-tech growth play in the retail scene and one high-tech e-commerce firm with one of the most intriguing growth profiles out there.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) is a convenience retailer that may very well have the strongest managers in the business. With plenty of cash to put to work on an acquisition, the growth ceiling for Couche-Tard isn’t just high; it seems to be unbounded. For now, though, don’t count on Couche-Tard to get too active as valuations rise and opportunities dry up. When the time comes, though, expect management to make a big splash as it looks to achieve its long-term goal of driving earnings growth at a steady and above-average rate.

Personally, I’m a big fan of ATD stock, even as it nears new highs again. With a somewhat loftier 19.6 times trailing price-to-earnings multiple, it seems tempting to wait for a bigger pullback. I’m not so sure we’ll get one, as the company continues to stay resilient through this turbulent economy. The stock boasts a nice 0.7% dividend yield and could be making a run for the $100 billion market cap level (currently just shy of $80 billion).


Shopify (TSX:SHOP) is a rather volatile stock to own. But if you want greater growth, sometimes you need to be able to ride out the swoons. For long-term investors, sticking with Shopify has been a wise move — that is, unless you bought the stock in the back half of 2020 or 2021.

Moving ahead, I’d look for Shopify to make the most of a potential comeback in the consumer. With a robust high-tech ecosystem of digital merchants, the sky could be the limit as SHOP stock resumes its comeback. For now, though, shares are taking a breather. If a pullback to $85-90 is in the cards, I’d look to add to a long-term position in the wonderful growth gem.

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 Joey Frenette has positions in Alimentation Couche-Tard. The Motley Fool has positions in and recommends Alimentation Couche-Tard and Shopify. The Motley Fool has a disclosure policy.

More on Investing

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

REITs with modest amounts of debt, like Killam Apartment REIT (TSX:KMP.UN), can be good investments.

Read more »

edit Person using calculator next to charts and graphs
Stocks for Beginners

Where to Invest $7,000 in April 2024

Are you wondering how to deploy the $7,000 TFSA contribution increase in 2024? Here are four high-quality stocks for earning…

Read more »

Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

Some of the smartest buys investors can make with $500 today are stocks that have upside potential and pay you…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Dividend Stocks to Buy in April for Safe Passive Income

These TSX Dividend stocks offer more than 5% yield and are reliable bets to generate worry-free passive income.

Read more »

protect, safe, trust
Dividend Stocks

How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $1,000

If you've only got $1,000 on hand, that's fine! Here is how to make a top-notch, passive-income portfolio that could…

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

CPP Insights: The Average Benefit at Age 60 in 2024

The average CPP benefit at age 60 in average is low, but claiming early has many advantages with the right…

Read more »

edit Sale sign, value, discount

2 Bargains I’d Buy as They Dip Toward 52-Week Lows

Spin Master (TSX:TOY) stock and another underrated Canadian play could surge again as they look to reverse course.

Read more »

Dividend Stocks

Why Did goeasy Stock Jump 6% This Week?

The spring budget came in from our federal government, and goeasy stock (TSX:GSY) investors were incredibly pleased by the results.

Read more »