The Motley Fool

3 TSX Stocks You Wish You’d Owned in 1995

Image source: Getty Images

These three stocks have all outperformed the Toronto Stock Exchange since January 1995.

Stella-Jones (TSX:SJ), Methanex (TSX:MX), and Nutrien (TSX:NTR)(NYSE:NTR) have provided Canadian retirees with outsized capital gains plus regular dividends in the past 25 years.

Methanex

If you had invested in Methanex in 1995, you would have most likely paid $20.88 per share. Today, the stock trades for $45.55 per share — giving you a capital gain of over 118% from your initial purchase.

Moreover, you would have also collected regular (and steadily growing) dividends since 2002 when the stock began issuing dividends. The current dividend is $0.476 per share at an annual yield of 4.28% at its current price.

While the past is not necessarily a good indicator of the future, the trend toward renewable energy only galvanizes demand for methanol. Methanex is one of the methanol producers investing in renewable methanol and promoting this chemical as an environmentally friendly alternative to traditional fuel.

Methanol is a highly toxic and flammable alcohol used primarily for organic synthesis in fuels, solvents, and antifreeze, including biodiesel. Biodiesel is an alternative fuel produced from vegetable oil. Biodiesel gained substantial popularity in 2009 when oil prices exploded because it was a cheaper alternative to gasoline.

Stella-Jones

In 1995, Stella-Jones traded for $0.55 per share. If you had invested in this stock at that price, you would be sitting on a capital gain of 6,840%. Even better: the stock has reliably paid out dividends to shareholders since 1999!

The corporation first issued a dividend payment in March 1999 at $0.0045 per share. Today, shareholders enjoy a dividend payment of $0.14 at a yield of 1.48%. Imagine the luxurious retirement a 100-share investment in Stella Jones would have given you.

Founded in 1992, Stella-Jones manufactures and sells railroad ties and wood products in Canada. Telecommunications is one of its most profitable industries. The big telecom companies rely on Stella-Jones to install utility poles.

Stella-Jones should benefit in the next year, as Telus expands broadband internet access, and the other telecom giants complete the required 5G equipment upgrades.

Nutrien

Canadians undoubtedly want to add this power player to their retirement portfolios. Long-time Nutrien shareholders (formerly known as Potash Corp and Agrium) earned an 884% return over the past 25 years. In 1995, shares of the now merged Potash Corp and Agrium sold for $6.74 each. Today, the stock trades for $66.29.

The downside for Nutrien investors all these years is the lack of dividends. Unlike Stella-Jones, Nutrien only began to issue dividends in 2018. Today, shareholders in Nutrien earn an annual 3.66% interest in dividend payments at the current share price.

Nutrien formed after Agrium and Potash Corp merged in 2016. The companies adopted the name of Nutrien post-merger and disbanded former TSX symbols. As a result, the companies’ revenue shot up to over $19 million from less than $5 million in 2017.

Nutrien now earns a gross profit of over $5.4 million per year. Together, they can afford to give shareholders an excellent annual return.

Foolish takeaway

Long-term investing pays off. These three stocks prove that there are great profit opportunities for Canadian savers.

Out of these three stocks, Nutrien is probably the best stock to add to your Tax-Free Savings Account. Because it is a new dividend payer and a corporation reaping the benefits from a successful merger, Canadians can’t go wrong by adding this top performer to their retirement portfolios.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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 Debra Ray has no position in any of the stocks mentioned. Nutrien is a recommendation of Stock Advisor Canada.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.