Got $3,000 for a TFSA? 3 Reliable Canadian Stocks for Long-Term Wealth Building

Reliability is a critical characteristic you should look for in a stock, especially if you are building an RRSP or TFSA nest egg for retirement.

Long-term wealth building, whether for retirement or for the next generation, requires a careful selection of the investment assets you should buy with your savings. Where you hold these assets can also impact how accessible this wealth is, and the Tax-Free Savings Account (TFSA) offers maximum flexibility in this regard.

grow money, wealth build

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A supermarket chain

If you look from a business model and fundamental strengths perspective, Metro (TSX: MRU) is one of the most compelling retail stocks you can buy in Canada. Its core business is grocery stores and pharmacies, both tied to necessities, essentially making it resilient against recessions, economic downturns, and, to an extent, even calamities like the pandemic. No matter the situation, people need food and medicine.

However, these fundamental strengths are often not reflected in the stock’s performance. Thankfully, that’s not the case with Metro, an impressive grower and a reliable Dividend Aristocrat for years. Its growth has slowed down recently, and it returned around 65% to its investors in the last five years, but that’s still more than enough to double your capital in less than a decade, and if you count the dividends (currently available at a yield of 1.4%), much sooner than that.

An asset management company

With a market capitalization of $141 billion and over a trillion dollars worth of assets under management, Brookfield (TSX: BN) is one of the largest asset management companies in the world. It has an impressive global presence, but the bulk of its assets (more than half) are in North America. Brookfield is also a sustainability and future-focused company, which bodes well for the longevity of its portfolio.

The long-term growth potential of the stock is quite impressive. It returned over 211% to its investors in the last decade and it’s currently quite strongly bullish as well and has gone up 58% in the last 12 months alone. One thing that may make Brookfield less attractive to many clients is its overvaluation. It’s trading at a price-to-earnings ratio of about 127 right now.

A gold royalty and streaming company

Franco-Nevada (TSX: FNV) offers compelling and reliable long-term growth potential, especially compared to gold mining stocks that tend to fluctuate based on gold demand. Many failed to offer decent returns in the last decade. As a royalty and streaming company, Franco-Nevada has managed to avoid these fluctuations and offered decent returns in the last decade — over 200%, including dividends.

However, it’s not just the stock’s performance and business model that makes it a strong long-term pick. The portfolio is another factor to consider. Many of the projects the company holds a slice of are in the exploration stage, which means the company has a decades-long inventory of gold and other projects. The company will reap the benefits once they are in the production stage.

Foolish takeaway

The three blue-chip stocks are worth buying and holding in your TFSA, even if you just have $3,000 to invest. About $1,000 a piece in these three stocks might turn into a sizable sum in a couple of decades, contributing to your overall TFSA nest egg.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield. The Motley Fool recommends Brookfield Corporation. The Motley Fool has a disclosure policy.

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