Alert: These 2 Millionaire-Maker Stocks Would Look Great in Any Portfolio

Great long-term stocks like Saputo (TSX:SAP) and Richelieu Hardware (TSX:RCH) have the potential to make you very wealthy. They might even make you a millionaire.

| More on:

Image source: Getty Images.

What exactly is a “millionaire-maker” stock, anyway?

The big thing is, it must be a stock that has the potential to grow significantly. While it’s nice to find a stock with the kind of organic growth potential to really matter, usually, you’ll find that companies consolidating a fragmented industry will come with a more reasonable valuation.

Next, I like to look for an organization with a history of creating shareholder value. You want to invest in a company that has a fantastic long-term stock chart. Consistent dividend growth is also an attractive feature to look for.

Finally, for a stock to make a huge difference in your portfolio, it must be held for a long time. We’re talking decades here. So, pick stocks you can be excited about owning for a while in industries you like.

Here are two millionaire-maker stocks you should be buying today.


Saputo (TSX:SAP) has quietly been one of the best growth stocks on the TSX over the last couple decades. The maker of milk, cheese, yogurt, and other dairy products has emerged as one of Canada’s largest companies and is one of the world’s top 10 dairy processors.

It has made a plethora of acquisitions over the years and now owns significant assets here in Canada, a large U.S. business, as well as sizable operations in Europe, Argentina, and Australia. The company’s most recent acquisition was in the United Kingdom.

Thanks to the impact of the U.K. acquisitions, Saputo is now projected to generate some $15 billion in revenue in its fiscal 2020, with net earnings coming in at $1.77 per share. Investors should note that analysts project earnings will grow to $1.97 per share in fiscal 2021, as the latest prize really starts adding to the bottom line.

The company’s long-term growth has been nothing short of extraordinary. Shares debuted on the TSX back in 1997 at a split-adjusted level of $2.10 each. The current share price is in the $40 range. Including reinvested dividends, that works out to a 14.89% annual return. That’s enough to turn a $10,000 initial investment into something worth more than $215,000.

The future looks good, too. There are still dozens of potential acquisition opportunities around the world, and the company’s management has proven they know how to make these deals work. The controlling family is still a big shareholder as well, owning approximately a third of the company. You’ve got to like that confidence.

Richelieu Hardware

Richelieu Hardware (TSX:RCH) is an importer, distributor, and manufacturer of specialty hardware and other complementary products. Customers include various types of contractors, specialty manufacturers, and even big-box retail stores.

Like Saputo, Richelieu is a relentless acquirer. Instead of making one big acquisition every couple of years, Richelieu takes a different approach. It’s constantly adding smaller companies, using cash on hand to fund these acquisitions. So far in 2019, the company has made four acquisitions, which deliver annual sales of approximately $23 million. That doesn’t seem like a lot for a company with a market cap of $1.5 billion, but they do add up over time. Additionally, Richelieu does make larger acquisitions every now and again.

Investors should note that the company has a mere $7 million in debt — an amount that is offset completely by cash on hand. It’s remarkable to see such an aggressive acquirer with virtually zero debt. You don’t have to worry about some nervous banker calling in loans during the next recession.

If you thought Saputo’s long-term results were impressive, then you’re in for a treat. Richelieu has performed even better since its 1996 IPO, giving patient investors a gain of 4,838% if they’d reinvested their dividends. That translates into a 17.96% annual return, which is enough to turn a $10,000 initial investment into something worth nearly $500,000 today.

The bottom line

Both Saputo and Richelieu have a few important qualities in common. They have a history of delivering excellent returns, yet both still have ample growth potential. They’re both run by excellent management teams. And each company posts consistent dividend growth.

Don’t delay; add both of these companies to your portfolio today, before they inevitably rocket higher.

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 Nelson Smith has no position in any of the stocks mentioned. The Motley Fool recommends SAPUTO INC.

More on Dividend Stocks

Specialty Brands faces higher raw materials costs.
Dividend Stocks

What’s Next for Premium Brands Stock?

Shares of the specialty food production and distribution company have fallen about 25% since last October.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

2 Interesting Buys in Any Market

Here are two intriguing buys in any market climate that offer defensive appeal as well as growth and income earning…

Read more »

Dividend Stocks

TFSA Investors: 3 TSX Stocks for Tax-Free Passive Income

These Canadian corporations have strong visibility over future earnings and dividend payouts.

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Dividend Stocks

Lazy Landlords: 3 Cheap Canadian REITs to Buy in May 2022

You can become a passive landlord today by investing in Canadian REITs. Here are three cheap REITs to consider this…

Read more »

Target. Stand out from the crowd
Dividend Stocks

4 High-Yield TSX Stocks to Buy Ahead of Their Ex-Dividend Dates

If you have some cash lying idle, consider these high-yielding TSX stocks.

Read more »

growing plant shoots on stacked coins
Dividend Stocks

Passive Income: 3 TSX Stocks With Rapidly Growing Dividends

Worried about inflation? Here are three passive-income stocks to buy that pay rapidly growing dividends.

Read more »

Family relationship with bond and care
Dividend Stocks

Retirees: 4 Safe Stocks to Buy for Decent Passive Income

Retirees can offset the impact of runaway inflation by buying safe dividend stocks to create more cash flows.

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

3 Canadian Energy Stocks to Buy for Reliable Passive Income

Canadian energy stocks are gushing cash. Here's three top stocks that are perfect buys for reliable passive income.

Read more »