A lot of people think that if they weren’t born rich or they don’t have the one-in-a-million high IQ, becoming a millionaire is extremely difficult, if not impossible. And they are partially right. But if you have enough savings, enough time, and you are able to take advantage of certain opportunities, the stars don’t have to align to make you a millionaire.
And these opportunities are plentiful in market volatility. So, if you believe a market correction or crash is in the cards for 2021, you might consider investing in two millionaire-maker stocks.
An industrial stock Toromont Industries (TSX:TIH) is an evergreen growth stock and one of the oldest aristocrats in the country. It has been raising its dividends for over three decades. From a capital growth angle, the stock offers a 10-year CAGR of 19.5%. $15,000 growing at this rate for two decades can turn into half-a-million dollars. That’s what you might be able to achieve, even if you buy the stock outside a market crash.
But a stock like this is usually overvalued, and with good reason. But a market correction or crash can change that and allow you to buy this stock near or below the fair price at a discount. In the last crash, the stock dropped by about 25%, and if you can hit that sweet spot, you might be able to reach your millionaire goal with this stock much faster.
A financial aristocrat There are plenty of aristocrats in the financial sector, but few of them offer the capital growth opportunity to rival goeasy (TSX:GSY). It is a relatively new aristocrat, but its dividend growth has been more than generous. Since 2016, it has grown its payouts by 260%.
That kind of dividend growth is hard to sustain, but even if the company keeps growing its payouts like this for a couple of more years, you might enjoy a healthy dividend payout. But even if you discard that, considering the growth prospects with a 10-year dividend-adjusted CAGR of 31.6%, the company can make you half-a-million dollars in about 13 years with a $15,000 investment.
And you can aggressively fast-track this growth by buying during market volatility. In the last crash, the stock fell by about 63%. If you buy this company when it hits rock bottom and hold on to it for about a decade, it might have the potential of making you a millionaire all by itself (if it can continue to keep growing at its current pace).
Foolish takeaway With just $30,000 invested, these two stocks might have the potential to make you a millionaire in about two decades. You can find more such growth stocks and diversify further for the safety of your capital. But your best bet to become a self-made millionaire is buying amazing companies when they are trading low and hold on to them for the long term.
The post Become a Self-Made Millionaire if the Market Corrects in 2021 appeared first on The Motley Fool Canada.
Fool contributor Adam Othman has no position in any of the stocks mentioned.
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