TVK:CC - 3 Stocks That Can Help You to Get Richer in the Next 5 Years
2024-05-21 16:20:00 ET
Becoming rich in the next five years is a tall order, even if you have a healthy risk tolerance and are willing to try and capitalize on explosive trends happening in the market.
However, if you adjust your expectations reasonably and are aiming to get richer than you are now, then investing in predictable and consistent growth stocks is one of the best ways to go about it. Here are three such stocks that you might consider looking into.
A logistics stock
TFI International ( TSX:TFII ) is one of the largest trucking companies in Canada, with a massive fleet and a wide range of trucks. It also owns a strong network of operating companies (over 90) and facilities (over 620) spread out across North America.
Its growth has been both organic and fueled by several strategic acquisitions over the years, including Daseke, which added thousands of tractors and trailers to its fleet.
TFII has been a powerful grower as a stock, especially in the last five years. The stock rose by over 300% over that period, and if you add in the dividends as well, the overall returns will increase by 343%. Assuming similar growth in the coming five years is impractical because this bull market phase included explosive post-pandemic growth.
However, the chances of the stock doubling your capital in the next five years might be decent enough — i.e., just one-third of its current five-year growth.
A retail stock
Canada has its fair share of retail giants and when it comes to dollar store chains, Dollarama ( TSX:DOL ) is the value retailer giant of the country. There are over a thousand stores under the Dollarama banner, and the company is projecting the doubling of this number by 2031.
The financials of the company are healthy and it recently posted about 16% growth in its sales for the year 2024.
The stock has mimicked the impressive organic growth of the business. It has returned over 195% to its investors in the last five years, but even more impressive than that number is the consistency of its growth.
Almost none of the market dips, including the 2020 crash, are reflected in the stock’s performance, at least not to scale. It pays dividends as well, but the yield and dividend-based returns are almost negligible compared to its growth potential.
An energy/industrial stock
Even though TerraVest ( TSX:TVK ) is technically among energy stocks in Canada, it’s unique enough to offer a completely different performance pattern from the rest of the sector.
The company makes specialized equipment for several business-to-business customers, mostly from the energy sector, but it also makes products for a business-to-customer base.
Its business model allowed the stock to survive the energy sector’s decline during the early days of the pandemic, and it made an almost complete recovery from the 2020 crash in less than four months, far swifter than the rest of the sector.
Even now, when the energy sector is stagnant and expected to go bearish, the Terravest stock is climbing. Its returns in the last five years have been quite impressive at 484%. Even a fraction of this growth in the next five years may significantly boost your portfolio.
Foolish takeaway
All three stocks have more than doubled their investors’ money in the last five years, and a similar/comparable performance in the next five years (assuming you divest enough capital in the three companies) can considerably impact your wealth.
The post 3 Stocks That Can Help You to Get Richer in the Next 5 Years appeared first on The Motley Fool Canada .
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends TerraVest Industries. The Motley Fool has a disclosure policy .
2024