BEPC:CC - 2 Growth Stocks to Buy and Hold Forever
2024-01-15 16:50:00 ET
If you’re hoping to get rich through the stock market, then it’s important that you focus on growth stocks . These are stocks with the potential to generate multiples upon your initial investment over time. However, it should be noted that investing in growth stocks doesn’t guarantee you’ll see those kinds of returns. That’s why it’s vital that you identify the right stocks to hold in your portfolio. In this article, I’ll discuss two of the best growth stocks to buy and hold forever.
A “boring” company that constantly performs
When investors look for growth stocks to hold in their portfolio, many of them turn to riskier tech stocks that could implode at a moment’s notice. When, in fact, there are outstanding growth stocks that operate more stable, albeit rather boring , businesses. Alimentation Couche-Tard ( TSX:ATD ) is an example of such a company. For those who aren’t familiar with it, know that it operates convenience stores across the world.
Alimentation Couche-Tard is a company that I think is grossly undervalued by investors. It operates more than 14,400 locations across 25 countries. Although you may not recognize the Alimentation Couche-Tard name if you don’t live in Quebec, perhaps you’ve seen some of the other names it operates under. This includes On the Run, Circle K, and Dairy Mart, among others.
Alimentation Couche-Tard stock has gained more than 23% over the past year. To put that into perspective, the TSX has gained just under 3% over the same period. That means Alimentation Couche-Tard stock has generated a return more than seven times greater than the broader market. In addition, this stock offers investors a very fast-growing dividend. Since 2013, its dividend has grown at a compound annual growth rate of about 27%.
Alimentation Couche-Tard is a top stock whether you look at it from a capital appreciation point of view or for its dividend.
Don’t give up on this stock
Brookfield Renewable ( TSX:BEPC ) is a stock that I’ve been watching for a long time. This is one of the largest players in the global renewable utility space. It operates a diverse portfolio of assets with a generation capacity of 32 gigawatts (GW). Even more impressive, Brookfield Renewable’s development pipeline could add an additional 132 GW of generation capacity. That would further cement its positioning atop its industry.
Brookfield Renewable’s management aims to deliver an annual return of anywhere from 12% to 15%. Since its inception, Brookfield Renewable stock has generated an annualized return of 16%. That means the company has been performing even better than expected.
Since mid-2020, this stock has been rather stagnant. It has gained about 1% (dividends excluded). However, I strongly believe that investors could be heavily rewarded in the future. Investments towards renewable energy should continue to ramp up as many companies and countries around the world look for ways to slow down the climate crisis.
We’re seeing many large companies aiming to be carbon neutral over the coming years, and Brookfield Renewable could lend a major hand in helping that happen.
The post 2 Growth Stocks to Buy and Hold Forever appeared first on The Motley Fool Canada .
Fool contributor Jed Lloren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Brookfield Renewable. The Motley Fool has a disclosure policy .
2024