I mentioned earlier that the Duty Free Savings Account (TFSA) is an excellent channel for investing in stocks. TFSA capital gains are not taxed, so focusing on high-growth stocks can generate significant wealth in the long run.
Now is the time to invest in quality equities through TFSA, as expected economic growth and recovery in demand provide a strong foundation for growth. I have selected three growth stocks that have the potential to outperform the broader market and generate tax-exempt capital gains over the next decade.
In 2020, the pace of transition to omni-channel platforms accelerated rapidly, resulting in a large rally. Litespeed (TSX: LSPD)(NYSE: LSPD) stock. Its omni-channel payment platform recorded strong demand, with payment revenue exploding, as reflected in its 300% growth in the previous quarter.
I believe e-commerce spending will only increase over the next decade, which could support the uptrend in Lightspeed stocks. On the other hand, the structural shift to omni-channel platforms provides enterprises with long-term growth opportunities.
Thanks to the inventory rally, Lightspeed’s Valuations appear to be growing.. However, for long-term investors, that assessment is not a concern. Strong trends in the industry can stimulate demand and boost stock prices over the next decade. Innovation and product expansion may continue to ease average revenue per user, and thus margins, to support the growing trend of inventories.
goeasy (TSX: GSY) Is Necessities For long-term investors. The company has made extraordinary profits over the past few years, easily outperforming its larger rivals thanks to double-digit growth in the top and bottom lines.
Subprime mortgages operate highly profitable businesses, as evidenced by the significant growth in profits in the pandemic. goeasy revenue has grown at a CAGR of about 30% since 2001. Meanwhile, in the first nine months of 2020, its net profit increased by about 52%.
I believe that economic expansion is likely to stimulate consumer demand and drive its loan portfolio. In addition, channel expansion and new product launches have the potential to boost revenue at double-digit high rates and support inventory growth trends.
Investors should be aware that goeasy’s quality returns facilitate dividend payments. goeasy has paid dividends over the last 16 years and has been paying the same dividends for the past 6 consecutive years. goeasy stocks currently yield over 1.8%.
Cargo jet (TSX: CJT) Stocks on the TSX 30 list (30 TSX stocks whose prices have risen significantly over the last three years). High-growth companies are poised to deliver great returns over the next decade, thanks to their resilient business model and strong demand.
Cargojet’s strong domestic network and next-day delivery capabilities allow Cargojet to increase and expand its market share and capture the growing demand from the e-commerce industry. In addition, its long-term contracts and fleet optimization are on track for growth.
Cargojet inventories more than doubled in 2020 and will continue to grow in 2021. This reflects sustained demand, capacity expansion, and new customer acquisition.
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Stupid contributor Snehanahata There are no positions in any of the listed stocks. Motley Fool owns and recommends shares in CARGO JET INC. Motley Fool owns a stake in Lightspeed POS Inc.
TFSA Investors: Three Best TSX Stocks to Buy Now and Hold for the Next 10 Years
https://www.fool.ca/2021/01/25/tfsa-investors-the-3-best-tsx-stocks-to-buy-now-and-hold-for-the-next-decade/ TFSA Investors: Three Best TSX Stocks to Buy Now and Hold for the Next 10 Years