TFSA Investors: Buy These 3 Growth Stocks and Never Sell

These three top growth stocks are among the best options for long-term investors seeking to amplify their portfolio returns over the long haul.

| More on:
Hand arranging wood block stacking as step stair with arrow up.

Image source: Getty Images

In 2024, the Tax-Free Savings Account (TFSA) has a limit of $7,000. For Canadian investors looking to load up on growth stocks, this is the account I think makes the most sense to take advantage of. That’s because, as its name suggests, any future capital gains aren’t taxed. So, if you hit a big winner that multiplies in value over the years, all those gains are yours to keep.

The difficult part is finding places to put this $7,000 to work that have the ability to truly multiply over time. In this article, I’m going to highlight three companies that have proven their ability to do just that, and appear to have plenty of juice left in the tank.

Let’s dive in!


Shopify (TSX:SHOP) is an e-commerce giant providing global services to mid- and small-size businesses. The company operates with two business segments: subscription solutions and merchant solutions. The e-commerce platform’s cutting-edge technology enables merchants to design, manage, market, and sell their services and products more efficiently. 

Although Shopify is an established Canadian giant, the company has ample opportunities to increase its business, which are yet to be explored. The company has 15% retail sales penetration in North America and plans to increase the penetration in the upcoming years. In addition, Shopify has an increasing presence in the offline market, as it has taken over 2% of the retail sales in North America and 0.5% globally. Shopify plans to increase its sales by 10% annually until 2028, making this stock a top growth name to own (particularly for those who think these estimates are light).

Constellation Software

Constellation Software (TSX:CSU) is a Canadian company that develops and customizes software for public and private sector banks. It has a specialty in acquiring, building, and managing vertical-specific businesses. The company operates with two business segments: the public sector and private sector. 

Debuting in 2006, Constellation Software has provided returns of nearly 20,000% to early investors. That’s the kind of multiplication most investors are looking for. The stock’s chart trajectory is up and to the right, driven by a stable business model predicated on acquiring underperforming software businesses and improving their core numbers.

This growth-by-acquisition strategy has paid off handsomely. Notably, there’s plenty of runway left for Constellation to continue consolidating the software space. Unlike other industries, this is a sector that remains highly fragmented. Accordingly, for investors with a long-term investing time horizon, this is a top growth stock I think is worth owning on any dips moving forward.

Open Text Corporation

Open Text Corporation (TSX:OTEX) is a tech giant based in Canada that enables clients to aggregate, archive, retrieve, and search unstructured information through its software. The company specializes in delivering software solutions and services to government entities, small and large businesses, and consumers to manage information. 

Open Text has recorded growth for 12 consecutive quarters in annual recurring revenue, and its cloud bookings grew by 63% year over year to CA$236 million. Furthermore, Open Text has unveiled Cloud Editions 24.1 and innovative advancements in OpenText Aviator™. 

Open Text is another option for investors looking to gain exposure to the high-growth (and high-margin) software space. In this sector, I think Open Text remains a top-tier option, defined by its current price-earnings ratio of more than 80 times. That’s not cheap, but it’s clear investors are paying up for quality. Indeed, for investors willing to do so, this is a stock I think is worth owning here.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

More on Tech Stocks

question marks written reminders tickets
Tech Stocks

Nvidia’s Historic Stock Split: Will Investors See Bigger Gains?

Nvidia's (NASDAQ:NVDA) record 10:1 stock split entices many investors in several important ways. But some myths aren't technically correct.

Read more »

A worker drinks out of a mug in an office.
Tech Stocks

Want $1 Million in Retirement? 3 Stocks to Buy Now and Hold for Decades

Growth stocks such as Docebo and Celsius Holdings should help you generate outsized gains in the upcoming decade.

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

Missed Out on NVIDIA? My Best Growth Stock Pick to Buy and Hold

A TSX growth stock is a top pick and profitable investment choice if you missed out on the ascent of…

Read more »

grow dividends
Tech Stocks

3 Tech Stocks That Could Make You a Millionaire

Given their long-term growth potential, these three tech stocks could deliver oversized returns in the long run.

Read more »

Businessman holding AI cloud
Tech Stocks

Ready to Invest in Artificial Intelligence (AI)? 2 Stocks That Are Solid Bets

These two AI stocks provide investors with strong future opportunities as AI continues to become a part of our everyday…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Down 88% from all-time highs, is Lightspeed stock a good buy in May 2024 and can the TSX tech stock…

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

Forget NVIDIA: 1 Tech Stock to Buy Instead

Here’s why Shopify (TSX:SHOP) stock could be a smart long-term buy for investors willing to look beyond NVIDIA’s impressive growth.

Read more »

Lights glow in a cityscape at night.
Tech Stocks

2 Artificial Intelligence Stocks to Buy and Hold for the Next Decade

Qualcomm (NASDAQ:QCOM) and another well-placed AI stock could drive substantial capital gains over the next decade. Here's how.

Read more »