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.

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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.

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