3 Canadian Tech Stocks Worthy of Your TFSA

Not all tech stocks are bad. In fact, these three could end up as some of the best long-term winners for your TFSA!

Amy Legate-Wolfe ❯

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest.

Published March 1, 2023 4:00 pm EST

Canadian tech stocks are the black sheep of the TSX today. Shares soared upwards during the growth of the pandemic, only to come crashing down. And yet, some tech stocks now offer some of the best opportunities out there.

Now, I do say some tech stocks. Not all tech stocks will continue doing poorly, but some may take longer to recover than others. Or they simply don’t have the historical performance and future outlook to support growth in the future. With that in mind, these are the three Canadian tech stocks worthy of your Tax-Free Savings Account (TFSA) if you want to buy cheap, and hold long.

goeasy

Goeasy (TSX:GSY) is definitely one of the tech stocks that has the proof it can grow behind it. It has been on the market since 1990, making it one of the oldest tech stocks that investors can consider on the TSX today for their TFSA.

In that time, goeasy stock has grown immensely. In the last two decades alone, shares are up 4,554%! That’s a compound annual growth rate (CAGR) of 21.2% as of writing. Yet in the last year alone, shares are down 12%, so investors can hop on a deal with goeasy stock.

I do think goeasy stock is a deal among tech stocks, with the company continuing to post record performance even during this downturn. Shares also trade in value territory at 14.9 times earnings! And you can add a solid 3.07% dividend yield as of writing as well. So, most assuredly, it is worth your consideration.

Open Text

Another of the tech stocks I would definitely consider on the TSX today is Open Text (TSX:OTEX). Open Text stock is yet another tech company that’s been around for decades. It has grown in share price, but also in offerings. It’s now a cloud-based data management software program, and has been creating partnerships with some of the largest tech giants out there such as Microsoft and Alphabet.

Yet now, Open Text stock is proving it still has room to grow. This is from items such as acquisitions and upgrades being announced by the company in recent months. After all, with such large partnerships coming online, you have to have the infrastructure to support it.

Even with all these announcements, Open Text stock is one of the tech stocks that remains a deal. Shares traded down 14% in the last year, but are up 897% in the last two decades. That’s a CAGR of 12.2%, and you can also add a 2.78% dividend yield.

CGI

Finally, if you’re looking for tech stocks to buy, then you have to consider CGI (TSX:GIB.A). This company could be one of the best buys for solid growth. That comes from decades of growth behind it as a merger and acquisitions powerhouse.

CGI stock continues to be one of the best tech stocks for identifying software companies that need an extra push, usually in the form of extra funds. It will buy up a company, give it what it needs to thrive, and then release it into the wild. And this has helped it grow revenue year after year.

In fact, shares of CGI stock are actually up by 17% in the last year! Even so, I’d still consider it a deal. After all, it’s up 1,729% in the last two decades for a CAGR of 15.2% as of writing! So, don’t ignore tech stocks as a whole. Instead, consider these three tech stocks on the TSX today.