Stock markets are approaching all-time highs once again. This can make it hard to imagine greater upside for stocks this year. Yet despite this, you might be sitting on $3,000 of investable cash that you are still eager to deploy.
Well, if you have a long, patient investment horizon, here are three unique stocks that should have real capacity to create a fortune over the next 10 years.
This safety stock still has long upside
The first stock is Brookfield Infrastructure Partners (TSX:BIP-UN)(NYSE:BIP). If you’d bought BIP a decade ago at $12.23/share, you’d have received $15.80/share in dividends and end with a price of $57.31/share today. That’s a total combined return of 497%! You’d have more than doubled your investment just from dividends alone!
Today, this stock still trades at an attractive valuation and pays a nice 4.5% dividend yield. While it may not replicate its past returns, it could come close to a repeat in the next 10 years. Just like in 2009, the world faces some serious economic challenges. In the same way, BIP will likely take advantage of tough economic conditions to acquire high-quality assets at distressed prices.
BIP has the balance sheet, the geographic scale, and the management expertise to purchase and operate infrastructure assets across the globe. As a result, I think it will eventually execute on some very transformational deals in the very near-term. It’s currently is growing organically by 6-9% a year. Add in acquisitions and investors could enjoy 12-15% (or better) annual returns for many year to come.
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This health stock has a major opportunity now
The second stock to buy and hold for the next decade is Viemed Healthcare (TSX:VMD). It is a provider of ventilators and respiratory therapies in the U.S. Obviously, due to the COVID-19 crisis, its services and products are experiencing extremely high demand. In fact, hospitals and healthcare providers are increasingly looking to Viemed as a key partner in optimizing ventilators to help treat COVID-19.
As a result, 2020 could be a pivotal growth year for Viemed. I like this stock as a long-term play for two main reasons. First, it will benefit from the aging baby-boomer population, who increasingly need respiratory therapy to treat ailments like COPD.
Second, it’s using various technological verticals (telemedicine) to further broaden its customer base, scope, and range. Combined, Viemed has both temporary and secular growth tailwinds that should propel long-term growth.
A history and a future of top investor returns
The last stock to buy for the next decade is Constellation Software (TSX:CSU). It is one of the best-performing stocks on the TSX over the past decade. It earned shareholders a total return of 3,875%! While that rate of return is not likely over the next decade, it still has strong potential to grow investors wealth.
Constellation is an expert at consolidating niche Software-as-a-Service (SaaS) business across the world. It takes good businesses, makes them into great cash flow machines, and then reinvests the cash into new acquisitions. It has a true expertise at compounding investor capital.
Over 70% of its revenues are reoccurring, so it has a very stable business. Yet, it also has a large opportunity to continue growth through consolidation. The digitization of society and business continue to accelerate, so Constellation’s business should continue to see strong operational fundamentals.
Constellation is simply one of Canada’s best quality tech companies. Combine a stable operating platform and hundreds of consolidation opportunities, Constellation has strong potential to keep making investors a fortune over this decade as well.
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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 Robin Brown owns shares of Brookfield Infrastructure Partners and Viemed Healthcare Inc. The Motley Fool owns shares of and recommends Constellation Software and Viemed Healthcare Inc. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS and Brookfield Infrastructure Partners.