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TFSA Investors: Buy These 3 Growth Stocks and Never Sell

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Written by Chris MacDonald at The Motley Fool Canada

In 2024, the Tax-Free Savings Account (TFSA) has a limit of $7,000. For Canadian investors looking to load up on growth stocks, this is the account I think makes the most sense to take advantage of. That’s because, as its name suggests, any future capital gains aren’t taxed. So, if you hit a big winner that multiplies in value over the years, all those gains are yours to keep.

The difficult part is finding places to put this $7,000 to work that have the ability to truly multiply over time. In this article, I’m going to highlight three companies that have proven their ability to do just that, and appear to have plenty of juice left in the tank.


Let’s dive in!


Shopify (TSX:SHOP) is an e-commerce giant providing global services to mid- and small-size businesses. The company operates with two business segments: subscription solutions and merchant solutions. The e-commerce platform’s cutting-edge technology enables merchants to design, manage, market, and sell their services and products more efficiently.

Although Shopify is an established Canadian giant, the company has ample opportunities to increase its business, which are yet to be explored. The company has 15% retail sales penetration in North America and plans to increase the penetration in the upcoming years. In addition, Shopify has an increasing presence in the offline market, as it has taken over 2% of the retail sales in North America and 0.5% globally. Shopify plans to increase its sales by 10% annually until 2028, making this stock a top growth name to own (particularly for those who think these estimates are light).

Constellation Software

Constellation Software (TSX:CSU) is a Canadian company that develops and customizes software for public and private sector banks. It has a specialty in acquiring, building, and managing vertical-specific businesses. The company operates with two business segments: the public sector and private sector.

Debuting in 2006, Constellation Software has provided returns of nearly 20,000% to early investors. That’s the kind of multiplication most investors are looking for. The stock’s chart trajectory is up and to the right, driven by a stable business model predicated on acquiring underperforming software businesses and improving their core numbers.

This growth-by-acquisition strategy has paid off handsomely. Notably, there’s plenty of runway left for Constellation to continue consolidating the software space. Unlike other industries, this is a sector that remains highly fragmented. Accordingly, for investors with a long-term investing time horizon, this is a top growth stock I think is worth owning on any dips moving forward.

Open Text Corporation

Open Text Corporation (TSX:OTEX) is a tech giant based in Canada that enables clients to aggregate, archive, retrieve, and search unstructured information through its software. The company specializes in delivering software solutions and services to government entities, small and large businesses, and consumers to manage information.

Open Text has recorded growth for 12 consecutive quarters in annual recurring revenue, and its cloud bookings grew by 63% year over year to CA$236 million. Furthermore, Open Text has unveiled Cloud Editions 24.1 and innovative advancements in OpenText Aviator



Open Text is another option for investors looking to gain exposure to the high-growth (and high-margin) software space. In this sector, I think Open Text remains a top-tier option, defined by its current price-earnings ratio of more than 80 times. That’s not cheap, but it’s clear investors are paying up for quality. Indeed, for investors willing to do so, this is a stock I think is worth owning here.

The post TFSA Investors: Buy These 3 Growth Stocks and Never Sell appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.