Canadians’ skill to benefit from tax-free financial savings accounts (TFSAs) is one thing that shouldn’t be missed. Just like the Roth IRA, the TFSA permits traders to place after-tax capital to work on this long-term financial savings account for retirement. And when one retires, all the expansion that accrued over years (and hopefully many years) may be withdrawn tax-free.

That implies that corporations with sky-high progress charges are typically finest positioned to be included in such retirement financial savings automobiles. For Canadian traders trying to put some capital to work on this account, specializing in the highest-growth shares out there is usually the best way to go. Dividend shares, alternatively, could also be higher suited to different retirement accounts such because the RRSP.

With that stated, there are just a few dividend-paying progress shares I feel might slot in a TFSA. Right here’s one in every of my high picks within the Canadian market and why.

Alimentation Couche-Tard

Not essentially often called a dividend inventory, Alimentation Couche-Tard (TSX:ATD) truly does pay a dividend yield.

At the moment distributing $0.195 per quarter (amounting to a dividend yield round 1.1% on the time of writing), Couche-Tard’s progress prospects are complemented by some slightly stable distributions which have grown over time.

And whereas Couche-Tard’s administration workforce has mulled pulling this dividend prior to now (partly to fund future acquisitions, and hold that progress capital in-house), long-term traders who’ve caught with Couche-Tard have seen their returns bolstered by such a yield. That’s part of the complete investing thesis round Couche-Tard which I feel is under-appreciated.

Traders are nonetheless on this title for progress

That stated, I’d nonetheless argue that this comfort retailer and gasoline station conglomerate continues to be extensively seen as a growth-by-acquisition alternative, not a dividend play. That’s not one thing that’s going to alter anytime quickly.

In consolidating a really fragmented sector, with the vast majority of gasoline stations and comfort shops nonetheless small mom-and-pop operations (both one-offs or small chains), there’s loads of room for long-term progress to proceed. And whereas the chart above reveals a narrative of an organization that appears to have slowing progress (and deal progress has certainly slowed), I do assume a re-acceleration on this entrance, significantly at higher costs (if we do see a downturn), might present even higher returns for these considering long run.

Thus, I feel ATD inventory is trying like a robust purchase right here. This can be a inventory I’ll proceed to concentrate on as an enormous image TFSA alternative, till that thesis is damaged.