As Tax-Free Savings Account (TFSA) investors, the focus should always be on the long-term horizon, allowing the power of compounding and strategic investing to work in your favor. In the midst of market fluctuations, identifying strong candidates for a TFSA fund is crucial. Let's explore two compelling options, including the renowned Restaurant Brands International (TSX:QSR) and the sleep solution provider Sleep Country Canada (TSX:ZZZ).


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1. Restaurant Brands International (TSX:QSR)

Despite recent quarterly earnings revealing impressive results, Restaurant Brands International (QSR) faced a momentary dip in its stock value, declining over 3% on the day of the announcement. However, a subsequent recovery of more than 2% suggests that the dip may have been a short-term market reaction rather than a reflection of QSR's fundamentals.

Key Highlights and Investment Potential

The standout performer in QSR's portfolio was Tim Hortons, contributing to a more than doubling of the quarterly profit. This robust performance adds to the appeal of QSR as a deep-value income opportunity for investors seeking a comprehensive package of dividends, growth, and solid management.

Investment Outlook

Considering the recent dip, QSR stock appears to be a post-earnings buying opportunity at around $103 per share. With a dividend yield hovering around 2.8%, QSR represents an attractive option for investors looking for stability, growth, and passive income. The strength displayed by Tim Hortons positions QSR as a versatile investment with the potential for continued influence in the market.

2. Sleep Country Canada (TSX:ZZZ)

Sleep Country Canada (TSX ZZZ) stands out as a leading mattress and sleep product retailer in the Canadian market. Despite the emergence of digital disruptors and new entrants, ZZZ has maintained its position as a top player in the industry. The company's focus on expanding into the easily-deliverable mattress scene enhances its relevance in a changing consumer landscape.

Consumer-Centric Approach

While the mattress-in-a-box trend has gained traction, Sleep Country recognizes the importance of allowing consumers to physically experience mattresses before making a purchase. ZZZ's brick-and-mortar presence offers a unique advantage in an industry where comfort is a highly subjective factor.

Investment Appeal

After a year of commendable gains, ZZZ stock is poised as an attractive option for investors seeking a well-positioned player in the sleep product market. With a dividend yield of 3.51% and shares trading at an affordable 10.88 times trailing price to earnings, ZZZ combines income potential with a reasonable valuation.

Conclusion: Constructing a Resilient TFSA Portfolio

In the quest for long-term wealth accumulation within a TFSA, strategic choices play a pivotal role. Restaurant Brands International and Sleep Country Canada present compelling opportunities, each with its unique strengths and growth potential. As the economic landscape evolves, these stocks offer TFSA investors a chance to build a resilient portfolio that stands the test of time.