The stock market never loses its appeal as the top investing ground. Many people became wealthy from this market after staying invested in a handful of good stock picks for years. A diverse portfolio would deliver a big payoff over the long term. But there are success stories of individuals who became rich from a single stock.
Financial advisors seldom recommend a single stock investment today. Diversification, they say, is the better strategy. However, some experts in the investing world still recognize that some companies are one-hit wonders. It means the stock can bring investment success on its own. And you can retire rich.
Industry dominance
One such stock is BCE (TSX: BCE)(NYSE: BCE). If youâre Canadian, you should be familiar with the name. In case the name doesnât ring a bell, BCE is the largest telecommunications and media company in Canada. BCE provides all the communication needs of consumers, businesses, and government customers.
This $57.6 billion company has the most reliable and secure internet services. About 8.3 million homes and businesses enjoy the fastest internet speeds. BCEâs broadband fibre-optic network is also the largest in Canada.
Aside from the internet and related services, BCE is also the leading digital television provider. Through the same broadband fibre-optic network, 2.7 million customers delight in the stunning HD and audio quality, which is the best in the world.
BCEâs business internet service helps small businesses thrive in Canadaâs vibrant economy. The companyâs fast, stable, and scalable internet speeds enable small business owners to maintain their competitiveness and ensure profitable growth.
Another feather to BCEâs cap is its leadership position in the wireless segment. The company is already using LTE Advanced, the worldâs fastest wireless technology, in select communities in Canada.
Likewise, medium to large private businesses as well as government institutions avail of BCEâs information and communications technology (ICT) solutions. The company is the designer, builder, and operator of the infrastructures that power many of the countryâs networked organizations.
Strengths in multiple areas
The primary segments of BCE, namely, Bell Wireless, Bell Wireline, and Bell Media, hold industry-leading positions. All three contribute to the company’s revenue growth, expanding profit margins, sustainable cash flow from operations, and high return on equity.
The stock might not be a perennial top performer, but the dividend payments would be eternal. Retirees could amass substantial wealth from the 4.87% yield in a period of 20-25 years. Once youâve reached actual retirement, quarterly dividends are lifelong and sufficient to fund your retirement lifestyle.
Strike it rich
I donât buy the idea that youâre taking a huge risk by investing in a single stock rather than diversifying with several stocks. BCE is arguably one of the stocks suitable for long-term investors and wealth builders on a standalone basis.
BCE has a strong financial foundation, a proven business model, and the most dominant company in an industry that is practically a monopoly. If BCE rakes in billions of dollars year in and year out, you could generate millions and retire with the riches you deserve.
