Growth stocks can significantly enhance the tax-free growth potential of a Tax-Free Savings Account (TFSA). Over the past decade, the ’s growth stocks have delivered an average annual return of approximately 10 to 12%, outperforming many other asset classes. When these returns are achieved within a TFSA, all gains are completely tax-free, allowing investors to maximize their wealth accumulation.
This tax-free compounding makes the TFSA an ideal vehicle for holding growth stocks, particularly for younger investors with a long investment horizon. So let’s get into a few stocks that could be a prime choice. Scotiabank If you’re looking to transform your TFSA into a financial goldmine, the ( ), better known as Scotiabank, might just be your golden ticket.
With a rich history of solid dividend payments, Scotiabank has been a favourite among Canadian investors for decades. As one of Canada’s “Big Five” , it’s known for its stability and resilience, making it a relatively safe bet for those who want to see their investments grow without too many sleepless nights. As of Scotiabank’s most recent earnings report, the bank demonstrated it is continuing to perform well despite some economic headwinds.
The latest earnings highlighted strong revenue streams and a commitment to returning value to shareholders through dividends. In fact, Scotiabank’s dividend yield is one of the highest among Canadian banks, currently hovering around 6%. This means that if you invest $10,00.