TFSA Wealth Made Easy: 2 Steady Stocks to Line Your Nest Egg

Restaurant Brands International (TSX:QSR) and another growth stock to stash in your TFSA nest today.

| More on:

For young investors (like Millennials), it should be your top goal to grow the wealth within your TFSA (Tax-Free Savings Account) at a reasonable rate while steering clear of all possible risks. Indeed, it’s hard to avoid all risks, especially those that are lying just outside of your radar. Black swan events (like the COVID pandemic) will happen, and they’re impossible to predict.

All you can do is be prepared for such events to unfold and be ready to react accordingly by buying at times when most other folks are a tad on the fearful side. For most beginning investors, however, I’d argue that a passive approach may be a better option, given it’s incredibly hard to go against the grain when stocks are nosediving over profound uncertainties that were brought to the forefront in a near instant.

In this piece, we’ll concentrate on two steady stocks that can help grow your TFSA nest egg slowly and steadily over time. And, of course, there will be moments of market panic and other unforeseen economic chaos along the way. Regardless, the following plays, I believe are worth leaning on through all kinds of market conditions. Without further ado, let’s get right into the quick-and-easy names that could help boost your TFSA wealth creation mission!

Restaurant Brands International

Restaurant Brands International (TSX:QSR) is one of those dividend (growth) stocks that’s all too easy to buy on the dip. Indeed, the firm is behind some legendary brands in the quick-serve restaurant space. And in recent quarters, such brands have taken steps toward becoming more competitive in their respective restaurant sub-industries.

Burger King, Popeye’s Louisiana Kitchen, Tim Hortons, and Firehouse Subs make for a wonderful portfolio of diversified cash cows. And the best part is there’s a world of growth opportunity for the firm as it looks to bring its cherished menus to new localities.

Indeed, Burger King is the mature brand in the portfolio, while Firehouse Subs is one of the relative industry lightweights. Either way, I find the brands to make for a rather intriguing long-term growth (and dividend growth) story – one that I’d be willing to pay more than the mere 20.7 times trailing price-to-earnings (P/E) for.

Chipotle Mexican Grill

Chipotle Mexican Grill (NYSE:CMG) may be a U.S. stock, but it’s one worth venturing south of the border for the exposure. Indeed, Chipotle has been an absolute growth juggernaut for investors over the years. Seen as a healthier (but still incredibly convenient) option, I expect Chipotle’s growth days are far from over. At 65.5 times trailing P/E, CMG stock is not cheap. But does it deserve to be cheap, given its growth potential and efforts to automate various aspects of food prep?

I’d argue not. In fact, I think CMG stock may be worth a greater multiple as the firm continues exploring possibilities to be had with robotic food prep, among other high-tech initiatives to help enhance the customer experience.

For now, shares go for nearly $3,000 per share. However, the firm recently gave the green light for a 50-to-1 stock split. So, get ready for Chipotle to be more accessible to everyday retail investors.

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 Restaurant Brands International. The Motley Fool recommends Chipotle Mexican Grill and Restaurant Brands International. The Motley Fool has a disclosure policy.

More on Investing

Investor reading the newspaper
Dividend Stocks

Emerging Investment Trends to Watch for in 2025

Canadians must watch out for and be guided by emerging investment trends to ensure financial success in 2025.

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Dividend Stocks

Watch Out! This is the Maximum Canadians Can Contribute to Their RRSP

We often discuss the maximum TFSA amount, but did you know there's a max for the RRSP as well? Here's…

Read more »

nvidia headquarters with grey nvidia sign in front with nvidia logo
Tech Stocks

If You’d Invested $100/Month in Nvidia Starting a Decade Ago, Here’s How Much You’d Have Now

Nvidia has helped long-term investors create generational wealth. But is the tech stock still a good buy right now?

Read more »

chart reflected in eyeglass lenses
Tech Stocks

Is Shopify Stock a Buy, Sell, or Hold for 2025?

Shopify (TSX:SHOP) still looks like a tempting growth stock going into a new year with strength.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

Outlook for Fortis Stock in 2025

Fortis stock is up 10% in 2024. Are more gains on the way?

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

3 Low-Volatility Stocks for Cautious Investors

As uncertainty grips the market, here are three low-volatility stocks you can buy and hold with confidence.

Read more »

Metals
Metals and Mining Stocks

3 Unstoppable Metal Stocks to Buy Right Now for Less Than $1,000

Gold prices are expected to keep rising or stabilize in the next few months, and the precious metal stocks rising…

Read more »

sale discount best price
Dividend Stocks

Time to Buy! 1 Dividend Stock That Hasn’t Been This Cheap in Years

This dividend stock provides practically everything: a stable income stream, steady occupancy rates, and more growth to come.

Read more »