Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

2 Canadian Growth Stocks That Could Carry Your Portfolio for Years

Stock MarketsOct 27, 2021 12:46
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2 Canadian Growth Stocks That Could Carry Your Portfolio for Years

Often when investors think of growing their money rapidly in the stock market, they think of highly speculative companies such as the meme stocks we’ve seen rally sporadically throughout 2021. And while these highly speculative growth stocks clearly have the potential to rally every now and then, it’s a highly risky way for Canadians to put their hard-earned money to work.

However, there are a handful of high-quality Canadian stocks that can grow your money rapidly and consistently for years. So when you find these growth stocks, you want to buy and hold them for the long run since they have so much potential they can help carry your portfolio.

It’s one thing to find stocks that can grow rapidly. It’s quite another to find a high-quality business that can do it year in and year out. So if you’re looking for a top Canadian growth stock or two to add to your portfolio, here are some of the best to buy today.

A top Canadian real estate fund The residential real estate industry has been home to a few of the top Canadian growth stocks over the last decade. One of those high-quality stocks is InterRent REIT (TSX:IIP.UN).

InterRent is an incredibly impressive real estate fund that has grown investors’ capital by over 870% in the last decade or a compound annual growth rate (CAGR) of more than 25%. Part of the reason InterRent has achieved such impressive growth is due to the residential real estate industry in Canada being on fire lately.

However, that’s not enough to get the stock to grow by over 800%. The biggest factor in InterRent’s growth is the fund itself and its incredible strategy. For years it’s been expanding its portfolio and upgrading its existing assets, which massively increases the fund’s net asset value.

It also allows InterRent to grow its revenue quickly as well, which is why the stock has been such an impressive performer. The most attractive factor of InterRent’s business, in my view though, is that its strategy is straightforward and repeatable.

So you can expect the Canadian growth stock to continue looking for high potential opportunities to invest in and grow its business. And while the stock does pay a dividend and increases it every year, the yield is just 1.8%. But because it can grow its portfolio so rapidly, having a low yield is actually more beneficial, in my opinion, as it allows the company to reinvest more cash and grow the fund even quicker.

So if you’re looking for a high-quality company that can help grow your portfolio for years, InterRent is one of the top choices for Canadian investors today.

A top Canadian infrastructure stock Another excellent Canadian stock to buy and hold for years of stable and consistent growth is Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP).

Brookfield is an excellent growth stock to buy for the long term because it consistently sees cash flow growth and constantly recycles capital to invest in new businesses. However, it’s also a highly robust stock since the industries it invests in are so defensive.

The company owns crucial pieces of infrastructure, such as pipelines, utility businesses, telecom towers, and even railroads. Furthermore, these are spread out all over the world, making the stock one of the most diversified businesses you can buy.

Because the company is consistently looking for new, high-potential deals and targets to grow the fund by up to 15% annually, it’s a Canadian growth stock that could power your portfolio for decades. It even returns capital to investors and is currently paying a dividend that yields roughly 3.6%.

So if you’re looking for a high-quality Canadian growth stock that you can own for years, Brookfield has several qualities that make it one of the best to consider.

The post 2 Canadian Growth Stocks That Could Carry Your Portfolio for Years appeared first on The Motley Fool Canada.

Fool contributor Daniel Da Costa owns shares of Brookfield Infra Partners LP Units and INTERRENT REAL ESTATE INVESTMENT TRUST. The Motley Fool recommends Brookfield Infra Partners LP Units and Brookfield Infrastructure Partners.

This Article Was First Published on The Motley Fool

2 Canadian Growth Stocks That Could Carry Your Portfolio for Years
 

Related Articles

My Top 4 Canadian Stock Picks for December 2021
My Top 4 Canadian Stock Picks for December 2021 By The Motley Fool - Nov 26, 2021

Canada reported its highest inflation in 18 years of 4.7% in October, as the world grapples with the energy crisis. The month of December could see energy prices peak as the United...

Canada Housing Is on Fire: 3 TSX Stocks to Buy Today
Canada Housing Is on Fire: 3 TSX Stocks to Buy Today By The Motley Fool - Nov 26, 2021

When this year started, I’d discussed why the Canada housing bull market was well positioned to press on due to strong fundamentals and favourable monetary policy. Canadian...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email