As of January 1, 2025, Canadians gained an extra $7,000 of contribution room in their Tax-Free Savings Account (TFSA). That puts the total contribution limit of the TFSA up to $102,000.
The TFSA is an obvious choice for short-term savings goals due to its tax-free withdrawals. But there’s a lot to like about the TFSA if you’re a long-term saver, too.
In addition to tax-free withdrawals, gains are also not taxed. This means that investment gains can compound year after year inside a TFSA, which is completely tax-free.
With that in mind, here’s a basket of four proven growth stocks to add to your watch list.
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Shopify
It’s been a bumpy ride for Shopify (TSX:SHOP) in recent years. Despite that, the stock still hasn’t had any problem outperforming the market’s returns. The tech giant is up more than 200% over the past two years, yet it continues to trade below all-time highs from 2021.
Shopify likely won’t be a low-volatility investment anytime soon. But if you’re in it for the long haul, volatility shouldn’t concern you all that much.
This is not a company that long-term investors need to think twice about loading up on, especially not when it’s trading close to 30% below all-time highs.
Lightspeed Commerce
At a market cap of just $3 billion, Lightspeed Commerce (TSX:LSPD) is a far smaller company than Shopify. What it does have in common, though, is the potential to be a massive market-beater, and it’s not a stranger to volatility.
Despite revenue growth continuing to be in the double-digit range, Lightspeed hasn’t been able to return to anywhere near its all-time highs.
Management recently announced that they were exploring options for a potential sale of the company, to which the market reacted very positively.
On the flip side, even if there is no sale, there’s a lot of long-term growth potential here to be excited about with this international commerce player.
At a very discounted price, Lightspeed is a low-risk, high-reward type of investment right now.
goeasy
Don’t miss your chance to load up on this under-the-radar growth stock. goeasy (TSX:GSY) rarely goes on sale, but that’s exactly where it’s trading right now.
The stock is down 20% from all-time highs that were last set in 2021. Even so, shares are up a whopping 140% over the past five years, easily outpacing the returns of the S&P/TSX Composite Index.
With more interest rate cuts potentially around the corner, the consumer-facing financial services provider could be in for a spike in demand.
Now could be an incredibly opportunistic time to start a position in this proven growth stock.
Air Canada
Canada’s largest airline certainly doesn’t have the most dependable market-beating track record you can find on the TSX. That being said, the airline industry isn’t exactly known for delivering huge gains.
Air Canada (TSX:AC) is one of the few North American airlines that has shown that it can sometimes be a growth driver.
Short-term investors may be wary of loading up on a cyclical stock like this one. Patient, long-term investors are the ones who would be interested in this buying opportunity.
Once Air Canada finally grinds back to new all-time highs, it might be a while before it’s trading at a discount like this again.
