Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

Dividend Investors: These Top Wealth Generators Are on Sale!

Mr. Market is serving up a rare opportunity for investors to buy some of Canada’s best dividend-growth stocks at very attractive prices.

Here are the reasons why I think Royal Bank of Canada (TSX:RY)(NYSE:RY) and Canadian National Railway Company (TSX:CNR)(NYSE:CNI) should be on your radar.

Royal Bank

Royal Bank earned $10 billion in fiscal 2015. That’s a ton of money and it shows exactly why investors should buy stocks with dominant positions in sectors with limited competition.

The ongoing rout in the oil patch and the possible fallout across the broader Canadian economy could slow down the profit machine a little bit in the short term, but Royal Bank is still going to crank out great numbers.

The company is expanding its wealth management operations in the U.S., which should help offset slower times in Canada. Royal Bank is also investing heavily in the FinTech space to ensure it stays ahead of the curve on the mobile-payment revolution.

The quarterly dividend of $0.79 per share that yields about 4.5%. Investors have enjoyed a 10% compound annual growth rate in the distribution over the past 10 years.

A $10,000 investment in Royal Bank 20 years ago would now be worth $150,000 with the dividends reinvested.


Hard times in commodity markets have resulted in lower total shipments for CN, but the railway continues to deliver solid results despite the economic headwinds.

How is that possible?

CN is a very efficient railway. The company reduced its operating ratio from 60.7% in Q4 2014 to 57.2% in the fourth quarter of last year. The metric is critical for rail companies because it indicates the amount of revenue being used to run the business.

The strong U.S. dollar is also helping to support earnings. CN generates a significant portion of its profit south of the border, but reports in Canadian dollars. With the greenback now worth about CAD$1.40, the currency spread is offsetting a slowdown in total shipments.

CN just raised its quarterly dividend by 20% to $0.375 per share. The distribution yields about 2%, which doesn’t look that attractive, but the company has raised the payout by an average of 17% per year for the past two decades, and investors who have owned the stock since it went public in late 1996 are sitting on some serious gains.

In fact, a $10,000 investment in CN at that time would now be worth more than $220,000 with the dividends reinvested.

Just released! One top stock for 2016 and beyond

Exports of liquefied natural gas could be one of the best growth opportunities out there for long-term investors. And, we think we've identified the Canadian company to invest in. It's a global company with operations across nearly 20 countries and 70 locations. We like it so much, we've named it as 1 Top Stock for 2016 and Beyond. To find out why, click here now to learn how to access your FREE copy today!

Fool contributor Andrew Walker has no position in any stocks mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway. Canadian National Railway is a recommendation of Stock Advisor Canada.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

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