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.
One such stock is BCE (TSX:BCE)(NYSE:BCE). If you’re Canadian, you should be familiar with the name. In case the name doesn’t 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. BCE’s 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.
BCE’s business internet service helps small businesses thrive in Canada’s vibrant economy. The company’s fast, stable, and scalable internet speeds enable small business owners to maintain their competitiveness and ensure profitable growth.
Another feather to BCE’s cap is its leadership position in the wireless segment. The company is already using LTE Advanced, the world’s fastest wireless technology, in select communities in Canada.
Likewise, medium to large private businesses as well as government institutions avail of BCE’s information and communications technology (ICT) solutions. The company is the designer, builder, and operator of the infrastructures that power many of the country’s 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 you’ve reached actual retirement, quarterly dividends are lifelong and sufficient to fund your retirement lifestyle.
Strike it rich
I don’t buy the idea that you’re 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.
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 Christopher Liew has no position in any of the stocks mentioned.