BYD:CC - Want $1 Million in Retirement? Invest $25000 in These 3 Stocks and Wait a Decade
2024-02-14 16:20:00 ET
For investors looking to build a million-dollar portfolio, buying and holding the best growth stocks for a very long period of time is a strategy worth considering. For those with $25,000 to invest and who are looking to generate the sort of seven-figure returns many have over the years, it may be worth considering certain stocks with long-term growth trajectories that are headed in the right direction.
Indeed, the three growth stocks I’ve included in this list have all provided investors with life-changing returns since going public. For those looking to hold for the coming decades, I think adding these stocks today could help one achieve seven-figure status, even with relatively small sums invested right now.
Let’s dive in!
Shopify
Shopify ( TSX:SHOP ) is one of the premier e-commerce platform providers in the world. The company’s core offering provides a range of value-creating services to small and medium-sized businesses. Two segments, subscription solutions and merchant solutions, enable clients to conduct different e-commerce activities smoothly and operate their businesses in the 21st century.
In the third quarter of the financial year 2023, Shopify reported some rather impressive numbers. The company hauled in a gross profit of $901 million, representing a 36% increase from the previous year. Shopify also reported enormous overall growth of 52%.
For those who believe in the long-term secular trends underpinning the e-commerce space, Shopify remains a top option to consider right now. This is one of the best Canadian tech stocks to buy for some time, given the compounding it’s provided to patient investors. I don’t see that dynamic changing anytime soon.
Spin Master
Spin Master ( TSX:TOY ) is a children’s entertainment company operating in the $100 billion global industry. The company creates, manufactures and markets various children’s products and entertainment properties. With more than 30 offices present in over 20 countries, Spin Master is now able to generate revenue from more than 100 markets and remains a premier pick in this space.
Now, looking at the company’s stock chart, there’s not necessarily a strong recent growth trend to point to. This is a company that’s seen periods of strong growth in the past and has been hit by various dips (the pandemic certainly dented in-person sales of many consumer discretionary companies).
However, with the stock stabilizing around $35 per share, I think this is a company that can at least double over the next few years and provide compounded returns after that. The company’s portfolio of intellectual property, its relatively low valuation (at 16.8 times earnings) and its recent acquisitions in its sector position the company well for share price appreciation over time.
Boyd Group
Boyd Group ( TSX:BYD ) is a Canada-based glass repair and auto body services company operating in Canada and the United States. It primarily operates under the name Boyd Autobody and Glass in Canada and is one of the largest auto glass retailers in the United States.
Boyd Group has an absolutely incredible long-term chart, and despite some volatility in recent years, investors have been rewarded by buying the dip. Now trading around an all-time high, BYD stock continues to impress long-term growth investors with its consistency and growth forecasts.
This past quarter, the company’s earnings per share grew by a whopping 27%, with revenue growing 23% year over year. I like companies that have expanding margins and pay dividends; Boyd Group also fits this profile. Impressively, the company announced a cash dividend of $0.15 per share for the fourth quarter of 2023.
Those thinking long term really do get it all with this company, which continues to consolidate the fragmented auto repair shop business in North America. The company’s long-term growth prospects remain strong, making Boyd one of my top picks for growth investors right now.
The post Want $1 Million in Retirement? Invest $25,000 in These 3 Stocks and Wait a Decade appeared first on The Motley Fool Canada .
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Boyd Group Services and Spin Master. The Motley Fool has a disclosure policy .
2024