There are several ways of building up your investment portfolio. If you are seeking fast culmination of wealth, even if it comes with considerable risk, your portfolio might be full of growth stocks.
If you prefer to play it safe and depend on time and compounding to build your wealth, you might have a safe portfolio, filled with blue chip dividend stocks.
But most investors seek a combination of both types and they prefer to choose stocks various sectors to minimize the risk of overexposure.
This seems a safer way to venture out of your circle of competence. Boyd Group stock (TSX:BYD.UN), IGM Financial (TSX:IGM), and Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) are three stocks you might consider for a combination of growth and dividends.
Collision repair centres king
Boyd Group is one of the largest operators of collision repair shops in the country. The company is also a glass retail operator, working in 34 states in the U.S.
The Boyd Group Income Fund is an open-ended mutual fund, with the majority of its share in the Boyd Group and its subsidiaries.
This company has had a terrific growth spurt. The market value of the company has grown by about 320% in the past five years. This year has been especially rewarding to its investors, with a growth of almost 84%.
Currently, the company is trading at almost $198 per share at writing. If it continues with its five-year growth pace and expands by 64% a year, Boyd Group can double your investment in less than two years.
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An asset management company
IGM Financial is one of the leading asset management companies in the country. The company oversees assets worth approximately $163 billion. The company is efficient in its business, with a return-on-equity of 16.4% and a profit margin of almost 22%.
But a better number than these is IGM’s dividend yield: a juicy 5.8%. The company hasn’t cut dividends in the past five years and it’s unlikely to slash dividends in the future given the company’s stability and continual growth.
The market value of the company is $38.74 per share at the time of writing — a 16% increase from the same time last year.
Renewable asset managers
Brookfield Renewable Partners is another asset manager in renewable properties. The company owns 2,000 assets in 30 countries worldwide. These renewable energy assets have excellent growth potential in the future of sustainability. The company provides a good mixture of growth and dividends.
The company has grown its market value by almost 67% in the past five years. This year has been especially fantastic for the company’s growth, as it increased its market value by 62%.
Right now, the company is trading at around $60 per share at writing. The dividend yield is also a decent 4.5%. This investment will give you a chance to grow your wealth on two fronts: via dividends as well as capital gains.
A well-balanced portfolio will grow your wealth at a decent pace without suffering too much from the economic downturns. It’s a subtle ratio to maintain between volatility and growth.
If it’s done right, however, your investment portfolio can create a dependable passive income, as well as a strong safety net for you to fall on in case your primary income gets cut off for any reason.
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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners. Brookfield Renewable Partners is a recommendation of Dividend Investor Canada.