The Tax-Free Savings Account (TFSA) has become indispensable for Canadians. You can achieve long-term financial goals, including a comfortable retirement, by maximizing the annual contribution limits. Since money growth in a TFSA is tax-free, your money could grow faster than other investment accounts.
Five Canadian stocks have delivered enormous gains in the last three years, despite rising inflation and rapidly rising interest rates. You have a real chance of doubling or even tripling your TFSA’s value if you hold them in your basket of stocks.
Money-makers
NuVista Energy (TSX: NVA) and CES Energy Solutions (TSX: CEU) are ideal TFSA holdings for their market-beating returns. The current share prices are 386% and 306% higher than in 2021. With the energy sector regaining lost ground this year, both stocks should sustain upward trajectories.
NuVista ranked second in the 2023 TSX30 List, the flagship program for Canada’s top-performing growth stocks. The $2.67 billion oil and natural gas company operates in the condensate-rich Montney formation in the Pipestone and Wapiti areas of the Alberta Deep Basin.
According to management, its value-adding growth strategy targets returning approximately 75% of free adjusted funds flow to shareholders through common share repurchases. At $12.94 per share, current investors enjoy a 17.21% year-to-date gain.
At only $6.79 per share, current CES Energy investors enjoy a 98.08% year to date on top of the modest 1.77% dividend yield. Had you invested $6,000 three years ago ($1.66 per share), your money would be $24,542.17 today. The $1.6 billion company provides technically advanced consumable chemical solutions to oil and natural gas industry players.
Niche player
Computer Modelling Group (TSX: CMG) in the technology sector caters to energy companies. The $892 million software and solutions company provides simulation software (reservoir and production), including training and support services. Its current share price of $10.98 is 228% higher than $4.82 three years ago.
Besides the nearly 60% year-to-date gain, CMG is a rare tech gem owing to the 1.82% dividend yield. After three quarters in fiscal 2024 (nine months ended December 31, 2023), total revenue and net income climbed 43% and 31% year over year to $76.4 million and $19 million, respectively.
Specialty services
Like NuVista Energy, Black Diamond Group (TSX: BDI) is a 2023 TSX30 winner (rank 30). The $493.4 million company specializes in and provides modular buildings and remote and temporary accommodations. An allied service is business-to-business workforce travel management in a digital marketplace.
The current share price of $8.04 represents a 206% jump from three years ago. You can partake in the 1.49% dividend if you invest today. In the first quarter (Q1) of 2024, total revenue and profit declined 10% and 66% to $73.6 million and $1.5 million. Nevertheless, the specialty rentals and industrial services firm expects sales revenue to recover and reach typical volumes in 2024.
Prolific mining stock
Capstone Copper (TSX: CS) trades 185% higher today compared to three years ago ($11.20 versus $6.07). The $8.4 billion company boasts long-life copper operations in the Americas (five copper-producing districts). CS is the only mining stock in the 2023 TSX30 List (rank 6).
In Q1 2024, revenue increased 1.3% to $339.9 million versus Q1 2023, while net loss thinned 80% year over year to $5.8 million. Management said production is back-half weighted, so expect improved financial results by year-end.
Eligible TFSA investments
The five Canadian stocks in focus are eligible investments in a TFSA. All delivered fat gains since 2021 and could deliver far superior returns in the next few years.
