TFSA Blueprint: 4 Canadian Stocks to Secure Your Future

A solid TFSA nest egg can be critical to building a financially secure future. Powerful growth stocks can help you overcome the inherent contribution limitation of a TFSA.

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Tax is an important consideration when you are building a nest egg for your retirement, and that’s where the Tax-Free Savings Account (TFSA) is a true ally of Canadian investors. Anything you build and grow in your TFSA will not weigh down your tax bill in the retirement years.

Its contribution room is quite conservative, so you may consider leaning towards reliable and relatively fast growth to ensure the growth of a solid nest egg and secure your financial future.

A railway stock

Canadian Pacific Kansas City (TSX:CP) is the Canadian railway company that has expanded its regional reach quite significantly thanks to its merger with the American railway company. While quite costly, the merger has solidified the company’s presence in North America and improved its prospects.

The company is financially sound as well, even though its last quarterly results fell short upon multiple estimations, including net income and earnings per share (EPS), despite its revenue growth.

The stock is also modestly discounted right now as it fell about 14% since its peak in March. However, its overall growth potential, which allowed the company to return about 69% to its investors in the last five years, is still quite considerable.

A waste management stock

When it comes to reliable growth, companies like Waste Connection (TSX:WCN) stand out thanks to a powerful combination of a stable business model and powerful growth pace.

It’s a waste management company, one of the largest publicly traded ones in North America and has a massive reach in Canada and the U.S., covering multiple provinces and states. But a far more impressive factor to consider is its growth pace.

The stock has gone up over 80% in the last five years alone, and even though the growth has been a bit inconsistent, there is no reason to believe that the growth pace might be disrupted in the near future. At this pace, it can double your capital in fewer than seven years, which can significantly expedite the growth of your nest egg.

A bank stock

Bank stocks in Canada, especially if we stick to the Big Six, are among the most trustworthy and relatively generous dividend payers in the country. National Bank of Canada (TSX:NA) maintains this dividend strength inherent to Canadian banking institutions but it also offers a compelling growth potential along with its safe dividends.

The stock rose by 90% in the last five years, a pace that far outstrips the other Big Five stocks in Canada. This growth has impacted the yield but not too much (3.7% at the time of writing this). This combination of yield and growth makes National Bank of Canada a compelling pick, even with its higher-than-average valuation.

A retail stock

Metro (TSX:MRU) is one of Canada’s largest food and pharmacy retailers, with a network of 987 food stores and 641 drugstores, mostly in Quebec and Ontario. It has strong roots in the two provinces and a massive regional presence. The two retail domains — i.e., food and medicine — are quite resilient against recession and other economic downturns as well.

Metro is a powerful growth stock pick. Although its growth pace is not comparable to that of the other three stocks mentioned above, it did grow by about 50% in the last five years. So, the stock may help you double your capital in the next ten years.

Foolish takeaway

The four stocks can help you build/grow a sizable retirement nest egg without adding to your tax obligation in your retirement years. All four are dividend payers as well, but growth is their primary strength.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Pacific Kansas City. The Motley Fool has a disclosure policy.

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