The Motley Fool

Double Your Money in 2020 With 2 Simple Strategies

Image source: Getty Images

Making more money or multiplying your cash could be your aim in 2020. There are many ways to help you improve your financial situation, and they’re not the get-rich-quick schemes.

Two simple strategies will let you discover the power of growing money and double its value at the same time. Besides, who would pass up on extra income opportunities?

Stock investing

Stock investing is one of the best ways to produce money from money. You can create a passive-income stream from the stock market. Even with little capital, investing in dividend stocks like Bridgemarq (TSX:BRE) can make a big difference. You have to start somewhere to reach your financial objective.

Bridgemarq is a small-cap stock that’s been in existence since 2003. This $141.7 million company is a leading provider of services to residential real estate brokers. It has a network of 18,000-strong realtors operating in Canada.

The attractive feature of this real estate stock is its 9% dividend. Seed capital of $5,000 will already produce $450 in annual income. As you increase your exposure, the higher your earnings will be. Any amount of investment you’re putting in will double in eight years.

Bridgemarq derives recurring revenue from fixed franchise fees that are protected through long-term franchising agreements. With this revenue structure, Bridgemarq generates stable and long-term cash flows, which allow for the payment of growing dividends.

Dividend reinvesting

Dividend reinvesting complements stock investing. You can choose to reinvest dividends to purchase more stocks. In case the company consistently raises its dividends, you will realize the power of dividend-growth compounding.

Pizza Pizza (TSX:PZA) is a $231.91 royalty company that pays a 9% dividend like Bridgemarq. Likewise, over the last decade, the dividend has been stable. It indicates that the business has consistent earnings power.

If you reinvest the dividends from Pizza, you can add small amounts to your exposure. Dividend reinvesting is the most efficient way to grow your money, as the number of shares and dividends grow in tandem.

The 52-year-old trusted brand and leader in the food service industry has 750 restaurants under its wings. But since consolidation is happening in the retail food space, Pizza Pizza is feeling the impact. It would need a positive catalyst to reclaim its dominant market position. Still, pizza never goes out of style, and people will crave it.

Time is of the essence if you are saving for the future. The earlier you can start the process, the better. Beginning next year, the best gifts you can give yourself are noteworthy dividend stocks like Bridgemarq and Pizza Pizza.

You can’t delay saving and start investing at a later age. Otherwise, if you start at age 45, you have to set aside three times as much as you would if you had started at 20-something.

Prosperous new year

There are countless and less-risky ways to double your money, but it will take longer to achieve your goal — if you do at all. The two simple strategies are the best legitimate and profitable options you can find to make 2020 a prosperous year.

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of PIZZA PIZZA ROYALTY CORP.

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.