It can seem almost impossible to think about stocks making you a millionaire during today. A market rebound seems incredibly far off while we’re in the midst of this market crash. But there are a few basic investor rules that everyone should remember at a time like this. One of those rules is to invest for the long term.
If that’s your strategy, it can be incredibly easy to make it to a million dollars at today’s stock prices. What investors should remember is that when we go through a market rebound, that means stocks should make it back to pre-crash levels, or at the very least, fair value prices.
In that case, there are a few great options out there. I’m not saying that you should buy up a bunch of risky stocks either. In fact, during a market crash, you should be looking for relatively safe options that should bounce back quickly during a market rebound. So here are two to consider.
A perfect, safe option to buy up right now is Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA). Pipelines have been unfairly valued during today’s market crash. In reality, these pipelines are needed more than ever to prevent a glut in the oil and gas industry that we’ve been facing as a country.
Pembina is one of the pipelines with multiple projects underway that should bring in an incredible amount of long term cash after the market rebound.
So let me throw some numbers at you. Pembina has $5.6 billion in remaining projects underway after the success of its Peace pipeline project. It is also supported by long-term contracts that will keep cash coming in for decades, including its substantial dividend. Pembina currently offers a whopping 12.38% dividend as of writing, which comes out to $2.52 per share per year.
An investor could reinvest dividends and reach $540,558.02 in 18 years if you invest $35,000 at today’s prices, and the stock reaches fair value within a year’s time.
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One stock that has the potential to shoot up in share price in a market rebound is Lightspeed POS Inc. (TSX:LSPD). Lightspeed had the biggest initial public offering (IPO) in the tech industry since 2009. That’s left many analysts, including the Motley Fool, recommending the stock and buying up shares as well.
The reason? Lightspeed is in an industry that is shooting up into the stratosphere. The point-of-sale system is only in the beginning stages, with the chance to boom as the rest of the industry becomes even larger.
The company is expected to be one of the fastest-growing companies in the industry, with average annual earnings growth around 50% for the next few years at least.
Yet right now, the company trades below IPO pricing at around $14 as of writing. So again, if we reach fair value in just one year, by investing $34,500 today (to max out your Tax-Free Savings Account), you could reach $512,421.44 in just 19 years.
So in under 20 years, by choosing these two strong stocks, you could have $1,052,979.46 if you buy at today’s prices. A market rebound could happen sooner than you think, so now is a great time to buy up these great stocks for super cheap.
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 Amy Legate-Wolfe owns shares of Lightspeed POS Inc and PEMBINA PIPELINE CORPORATION. The Motley Fool owns shares of Lightspeed POS Inc. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.