Maximize Your TFSA Potential: 3 Stocks to Buy Today

Early retirement handwritten in a note

The Tax-Free Savings Account (TFSA) is absolutely a great way to store and save cash for any of your financial goals. Whether it’s as far away as retirement, or as close as paying off some student debts, the TFSA can be a great way to put cash aside, and keep it safe for when you need it most.

However, to maximize your TFSA potential you should absolutely be investing. If you’re not, then you risk leaving your cash there to gain absolutely nothing, not even interest! So today, I’m going to go over three safe TSX stocks to consider investing in today. Ones that will maximize your TFSA’s potential, without added risk.


If you want safety, go with companies recognized by large institutions. That certainly includes Colliers International Group (TSX:CIGI), of which 74% of the shares are owned by institutions. Yet despite a bit of tapering off over the last few months, analysts now see the stock as holding strong rewards in the near future.

Providing services to the large commercial real estate industry, its return on invested capital continues to come in in the mid-teens. As they’re light on the assets held, Colliers continues to generate stable cash flow that can be used for reinvestment as well. What’s more, it recently reported adjusted earnings before interest, taxes, depreciation and amortization up 16% over the year-ago quarter.

Colliers stock is expected to continue outperforming in terms of performance, and therefore shares should climb soonafter. Long-term investors interested in the compounding potential should certainly be interested in this stock. Shares are down 18% in the last year, as of writing.

Constellation Software

Compared to Colliers stock, Constellation Software (TSX:CSU) is doing incredibly well. The company continues to climb upwards, currently up 34% in the last year alone. Yet recently there were moves that brought in even more investor interest.

Constellation stock announced it would be “spinning out” its sub-operating groups. This is in order for the company to try and achieve the same results and successes from the past, over the next 5 or 10 years. This also improves the sustainability of Constellation stock, according to one analyst, making it more efficient at handling its increasing portfolio.

It’s therefore the perfect time to pick up an expensive stock like this one, which while steady has lost some of its mojo. Spinning out these groups will therefore bring in more incentives, and more growth for these businesses. According to one analyst, free cash flow per share could rise as high as a 30% to 35% compound annual growth rate (CAGR) over the next five years!

Aya Gold & Silver

Finally, if you want stability for your TFSA among TSX stocks, investing in basic materials is a great start. Yet with Aya Gold & Silver (TSX:AYA), you get the defensiveness of gold stocks, along with the practicality of silver.

The company is now oversold, and analysts continue to choose it as a “top pick” based on this. There are lots of opportunities, especially with recent exploration results from its Moroccan mine indicating larger, higher grade resources. After posting its second-highest silver production in Morocco during the first quarter of 2023, expansion should begin rapidly, according to an analyst.

As Aya stock does continue to expand, analysts believe this will result in an increase in share price. For now, shares are up 29% in the last year, yet on par with where they began in 2023. So you could certainly see shares increase in the next few months alone, never mind the next few years.

The post Maximize Your TFSA Potential: 3 Stocks to Buy Today appeared first on The Motley Fool Canada.

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See the 5 Stocks
* Returns as of 5/24/23

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Colliers International Group and Constellation Software. The Motley Fool has a disclosure policy.