If you have enough dividend stocks under your belt, you may want to look at some growth stocks to diversify your portfolio. Alimentation Couche-Tard, Quebecor, and CAE are three companies that are trading at under $40 per share at the time of writing. If you had bought into these companies just five years ago, your investment would have doubled by now.
It might still not be too late. All three companies have strong fundamentals and may present a great buying opportunity if there is a market crash. If you manage to buy the dip, the companies may double your investment even before the next five-year mark.
A convenience store chain
With over 15,000 stores all across the world, Couche-Tard has a market cap of $44.57 billion. The company is currently trading at $39.50 per share, which is a 105% growth in market value in the past five years. The company has a good return on equity of 21.52%, and though it’s paltry compared to others in the market, Couche-Tard gives out dividends at a current yield of 0.64%.
The company’s diversified operations, globally expanded portfolio, and core operations gives it a solid footing and recession resistance. Given the company’s historical performance, if it stays on the same path, the company may significantly increase your capital gains in the course of a few years.
A communication company
Quebecor is a telecommunication company that chiefly operates in Quebec. Still, it owns the fifth-largest wireless carrier in the country, Videotron. Currently, the company is trading at $30.62 per share. It’s a 108.5% increase in the market value from the past five years. The company has an incredibly high return on equity of almost 210% and a decent diluted EPS of 2.51. Just this quarter, Quebecor has grown its earnings by 233%.
The company’s core focuses are telecom, media, sports, and entertainment. Another important feature of the company is that it is well integrated into the community, giving it a loyal consumer base. The company is well on its way to growth, but even if it keeps the same pace, you may double your investments in the next five years. The current dividend yield is 1.47%.
A company up in the air
CAE is a decade old player in the airline business. The company builds flight simulators, trains commercial and fighter pilots, and operates in healthcare. CAE is considered a worldwide leader in the training business, something that isn’t getting old anytime soon. The company is engaged in a stable business with a dependable client pool.
As for growth, CAE has increased its market value by 123% in the past five years. The present market value of the company is $33 per share, and the dividend yield stands at 1.32%. Even if this yield is not too much, CAE is a Dividend Aristocrat with 11 years of dividend increases.
Even if you didn’t invest five years ago, you still stand a chance of doubling your investment in the next five years or even sooner. The companies currently look stable enough to keep up their growth rate. Or you can wait for the looming recession to cause a serious dip in the market value before you make your move.
- Canada Revenue Agency: 80% of Canadians Are Making This TFSA Mistake
- TFSA 101: How Retirees Can Earn an Extra $635 Per Month in Tax-Free Pension Income
- Turn a $63,500 TFSA Into $1,000,000 by Doing This
- TFSA Users: $10,000 in This 12.58% Dividend Stock Pays $1,258/Year
- Top stocks for 2019
- Two New Stock Picks Every Month!
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends ALIMENTATION COUCHE-TARD INC.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019