Ideally, each Canadian should put away an adequate amount in both registered accounts for their retirement. But relatively few individuals can afford it, and if they can only choose one account to fill to the brim, many choose the Tax-Free Savings Account (TFSA).
The good news is that with the right stocks and enough time, you can easily grow your TFSA savings to a large enough size to sustain you in your golden years, along with your government pensions.
An insurance company
While not as safe as banks, insurance companies also represent a relatively safe segment within the financial sector of Canada, and while the country is home to many giants, Intact Financial (TSX:IFC) stands out from the rest. It’s the local Property and Casualty (P&C) insurance business leader and has expanded its presence to several international markets, including the U.K. and Ireland.
It’s also a reliable Dividend Aristocrat that is currently offering a modest 2.2% yield. However, you should consider it for your retirement nest egg because of its capital-appreciation potential. The stock has been a consistent grower since its inception and showed great resilience during the 2020 crash.
In the last 10 years, the stock has grown its investors’ capital by over 300% if you combine dividend and growth-based returns.
A trucking company
While it started out as a modest trucking company, TFI International (TSX:TFII) has emerged as a Canadian supply chain giant that has established an impressive presence across North America. It has partnered with a wide range of businesses and has grown its fleet to a decent size over the years.
The TFI International stock received an unnatural boost during COVID. The organic reason behind that growth phase was the surge in e-commerce activity during COVID. But unlike many e-commerce companies that reverted back to their pre-pandemic positions when the conditions became less favourable, the stock retained its position.
The stock has risen by about 640% in the last 10 years, and if you add dividends to the return equation, the overall number rises beyond 800% for this Aristocrat. It has grown its market value enough to land in the large-cap stocks pool.
A tech stock
Many Canadian investors look towards tech stocks when they need rapid growth, but growth and consistency don’t always go hand in hand in the Canadian tech sector. There are a few outliers to this pattern; one is Descartes Systems Group (TSX:DSG). The tech company is all about supply chain and logistics, and it has developed a unique platform with a massive logistics network.
As a stock, Descartes combines pace with consistency. Even in the last five years, when the rest of the sector went through robust growth and a brutal correction cycle, Descartes managed to hold on to its typical growth pattern. It has returned over 750% to its investors in the last 10 years.
Foolish takeaway
The three powerful growth stocks can help you grow your TFSA savings into a sizable nest egg in two or three decades. Even though past performance is no guarantee of the future, companies that manage to maintain their organic growth and scale up over time may also see their stocks going up at the same pace for years, even decades, and the three companies fall in this category (at least for now).
