Written by Jed Lloren at The Motley Fool Canada
Investing in a Tax Free Savings Account (TFSA) is very important. This allows investors to avoid having to pay additional taxes on the profits they make. This could help you snow your bankroll a lot faster, allowing you to achieve financial independence sooner than you think. In 2022, investors received an additional $6,000 of margin for their TFSAs.
In this article, I’ll review three stocks that could help you make the most of that $6,000. You could strengthen your portfolio.
Start with this renewable energy powerhouse
Brookfield Renewables (TSX:BEP.UN)(NYSE:BEP) is the first stock investors should consider adding to their TFSA. This company is one of the largest producers of renewable energy in the world. The portfolio has a generation capacity of 21 gigawatts (GW). In addition, Brookfield Renewable has 69 GW of generation capacity in various stages of development. Upon completion of these construction projects, this company would cement its place among the leaders in the global renewable energy supply industry.
As an investment, Brookfield Renewable stock could appeal to growth and dividend investors alike. In terms of growth, this stock is up 131% over the past five years. In terms of dividends, Brookfield Renewable is listed as the Canadian Dividend Aristocrat. The company has increased its dividend at a compound annual growth rate (CAGR) of 6% for each of the last 11 years. Regardless of your investment style, this could be a great stock for you.
A top growth stock for the future
Investors should also consider buying stocks Topicus.com (TSXV:TOI). This is a relatively lesser known company as it is smaller and focuses its business on the European technology market. As a former subsidiary of constellation software, it’s a stock that investors should really pay attention to. Like its former parent company, Topicus acquires software companies for vertical markets. As part of an aggressive growth strategy, Topicus has already managed to acquire more than 20 companies this year alone.
It’s important to note that a single bad acquisition can have major consequences for a company like Topicus. However, it has the advantage of working with Constellation Software. That’s an advantage many similar companies don’t have. If Topicus can draw on Constellation’s wealth of experience, it could avoid some of the crucial mistakes that often plague newer holding companies.
This company still has a lot of room for growth
After all, I still firmly believe in it Shopify (TSX:SHOP)(NYSE:SHOP) will be a much larger company 10 years from now than it is today. The e-commerce industry has seen massive growth over the past five years. As future generations of consumers continue to make the switch to online shopping, companies that help merchants get involved in this space could see massive growth.
In my opinion, Shopify differs from similar companies because of its extensive business partnership network. The company gives its merchants every opportunity to appear in front of consumers, regardless of whether their preferred selling platform is active meta platforms, Spotify, YouTube or many others. Shopify is heavily dependent on a subscription-based business, and Shopify’s monthly recurring revenue has grown at a CAGR of 35% over the past five years. I think we are still at the very beginning of this company’s growth path.
The post TFSA Investors: Got $6,000? Here’s How to Boost Your Portfolio appeared first on The Motley Fool Canada.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren has positions in Brookfield Renewable Partners, Shopify, Spotify Technology, and Topicus.Com Inc. The Motley Fool has positions in and recommends Shopify and Topicus.Com Inc. The Motley Fool recommends Constellation Software, Meta Platforms, Inc., and Spotify Technology. The Motley Fool has a disclosure policy.