North American markets have soared over the past decade, but the prospects for Canadian savers have dimmed over this same period. In early November, I discussed why investors should avoid using their TFSA solely as a savings account. However, there is a bigger problem for a significant number of Canadians who are struggling to stow away any cash at all.
A recent survey from Sun Life revealed that among Canadians in the workforce, 47% believe there is a serious risk that they will outlive their retirement savings. Another 44% believed that they will still be working full-time until the age of 66.
Investor who have failed to save anything into their middle-age should not wave the white flag. There is still plenty of time to take advantage of the kind of opportunities the market offers. Today I want to look at two stocks that can provide a boost in the form of growth and some income. These stocks are also poised for further gains into the 2020s.
Goeasy
In the spring of 2018, I discussed why Goeasy (TSX:GSY) was a fantastic stock to hold for the long term. Alternative lenders have increased in popularity over the past decade, especially as more and more Canadians are feeling the credit pinch. Canada has some of the highest debt-to-income ratios in the developed world. Goeasy provides financial services to customers to own furniture, electronics, computers, and appliances. Shares have climbed 95% in 2019 as of late afternoon trading on December 12. The stock has achieved average annual returns of 24% over the past 10 years.
Goeasy released its third-quarter 2019 results on November 4. It was another record quarter as Goeasy saw its loan portfolio grow 38% year over year to $1.04 billion. Revenue rose 20% from Q3 2018 to $156 million, and net income increased 38% to $14.3 million. Total application volume increased 25% at easyfinancial and its secured loan portfolio more than doubled to $101 million. Its easyhome segment posted same store revenue growth of 2.4%.
Investors will be paying a premium for Goeasy stock right now as it is trading near its 52-week high. However, it still possesses a price-to-earnings ratio of 14 and a price-to-book value of 2.9 at the time of this writing. I love its value as a long-term play, and the stock also pays out a quarterly dividend of $0.31 per share. This represents a 1.8% yield.
Badger Daylighting
Badger Daylighting (TSX:BAD) is another top growth stock that provides nondestructive hydrovac excavation services based on its core technology. The stock has climbed 14.6% in 2019 so far. However, shares have dropped 12.8% over the past three months. This presents a nice opportunity for investors to buy on the dip, especially in a broader market that is highly valued right now.
In the third quarter, Badger saw revenue rise 9% year over year to $183.7 million. However, adjusted EBITDA dropped marginally to $50.1 million compared to $50.9 million in Q3 2018. The company faced headwinds due to a slowdown in the Western Canadian oil and gas sector as the Alberta government instituted production cuts. Its growth was still strong in Eastern Canada. In the year-to-date period revenue has increased to $491 million over $431 million for the same period in 2018. Badger did reduce its adjusted EBITDA guidance for the full year in the range of $155 million to $170 million, compared to the range of $170 million to $190 million it provided in Q2 2019.
Shares of Badger possess a P/E ratio of 19 and a P/B value of 3.8 at the time of this writing. The stock is trading at the low end of its 52-week range. This is another stock that provides a nice boon in addition to its capital growth. Badger pays a monthly dividend of $0.0475 per share, which represents a 1.5% yield.
