The previous decade has brought about fascinating changes in the global economy that few could have predicted at the turn of the century.
The financial crisis that gripped the world from 2007 to 2009 ushered in a period of historically low interest rates and gargantuan asset purchasing programs from central banks in much of the developed world. This has ballooned stock valuations and has powered one of the longest bull runs in history, but the recovery has been tepid in comparison to past rebounds. It has also failed to touch many working people, which has sparked a new era of political instability.
Today, we are going to look at four stocks that are poised to record positive growth over the next decade. This is due to corporate strength and because of external factors that will provide a boost. Investors should consider these stocks for their TFSA or RRSP today.
Royal Bank stock was in negative territory in 2018 as of close on July 19, but the stock was still up 6.8% year over year. Shares have increased 126% over the past decade. However, Royal Bank has firmly established itself as a premier bank in Canada, routinely swapping spots with Toronto-Dominion Bank with regards to total assets. In late 2017, it was added by the Swiss-based Financial Stability Board to the list of 30 globally systemically important banks that are considered “too big to fail.”
In the second quarter of 2018, Royal Bank saw net income rise 9% year over year to $3.06 billion, while diluted earnings per share climbed 11% to $2.06. The stock also offers a quarterly dividend of $0.94 per share, representing a 3.5% dividend yield.
TMX Group Ltd. (TSX:X)
TMX Group stock had climbed 147% over the past decade as of close on July 19. The company operates cash and derivatives markets for a variety of assets classes. Volumes have steadily risen for major markets over the past decade, and the TSX and TSX Venture exchanges are no different.
TMX Group has also not been afraid to dip into exciting, new technologies. It announced this year that it would launch a cryptocurrency exchange that would seek to absorb roughly 5% of global volumes to start off. In the first quarter of 2018, diluted earnings per share were up 33% from Q1 2017 to $1.13.
Lithium Americas stock has climbed 96% over a 10-year period. In this time the demand for lithium-ion batteries has surged first through demand in consumer electronics and now crucially in the electric vehicle industry. Lithium Americas stock has tapered off in 2018 with the lithium price wavering and competition heating up, but experts forecast that prices will start to gain momentum again in the beginning of the next decade. The electric vehicle market is set to explode in the coming decades, which makes lithium producers an attractive target.
Exco Technologies Ltd. (TSX:XTC)
Exco Technologies stock has soared over 230% over the past decade. This company also stands to gain from trends in the automotive industry. Exco is a designer, manufacturer, and developer of auto parts and has operations around the globe. Vehicles are seeing rising demand for lightweight aluminum in order to increase fuel efficiency. Exco stock also offers a quarterly dividend of $0.085 per share, representing a 3.3% dividend yield.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned.