The year thus far has already been one hell of a ride for investors. People who had portfolios heavily dependent upon airline and energy would have found the year rough. On the contrary, investors who had a lot of liquidity, which they put to use during the crash, cherry-picking amazing companies and bargain prices, might have expedited their portfolio’s growth exponentially.
But the year isn’t over yet — far from it. We still have six months of 2020 left — and to find out what this highly eventful year still has in store for us. It’s also an excellent time to take a look at some of the stocks that could continue to thrive and growing in the second half of the year.
Granite REIT (TSX:GRT.UN) doesn’t offer explosive growth, but it does offer stability. As a growth and dividend stocks, Granite adds value to both avenues of your investment portfolio. It’s also one of the swiftest recovering REITs since the March crash, and it’s likely to continue with its growth pattern.
The company has a very strong balance sheet, and its operating income and profits only suffered minimal damage in the first quarter of 2020.
Granite has a globally diversified portfolio of properties, though the bulk of its assets are at home or in the U.S. As of the first quarter, the company owned and operated about 91 properties: 26 in Canada, 34 in the U.S. and the rest in Europe, mostly in Austria and Germany.
One of the reasons for the company’s impressive cash flow is its 99% occupancy. It’s offering a yield of 4.15% and has a five-year CAGR of 16.76%.
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A logistics company
TFI International (TSX:TFII) isn’t nearly as consistent about its growth as is Granite, but its five-year growth is still decent enough. It’s also a nine-year-old Dividend Aristocrat that currently offers a digestible yield of 2.18%.
The company recovered very swiftly from its massive 48% fall in March and is currently trading 2.7% higher than its pre-crash value. This rapid growth, a decent return on equity, and a solid balance sheet indicate that TFII may do really well in the next half of the year.
The company has over 390 facilities and 80 operating companies. It’s always looking to strengthen its position and reach by acquiring companies that operate in the same sphere both here and in the U.S. With the increased importance of logistics coupled with TFI’s strategic placement and locations, the company seems well poised for another long spell of growth.
A cargo company
Even though Cargojet (TSX:CJT) is significantly oversold than the other two stocks on this list, there is little doubt that this growth monster will see two more strong quarters. The company’s 10-year yield is 42.9%. Another decade like this can convert half of a fully stocked TFSA ($35,000) into a million-dollar in just a decade.
The company will likely enjoy continued growth along with the online retail market (which still has years of expansion potential left), thanks to Amazon’s interest in the company.
The three stocks can be a powerful addition to your portfolio for both dividends and capital growth. Only one of the three stocks is currently overvalued, and even that can be justified.
The second half’s dominance can be strengthened even further if another market crash comes and you manage to buy these stocks when they have a discount tag on.
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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 owns shares of and recommends CARGOJET INC.