When investors think of companies that have the potential to give them market-beating returns, more often than not, they will give you a list comprised of the latest hot growth stocks. For instance, Shopify has seen an incredible run this year, increasing more than 145%. However, if you look in the right places, you may be able to find strong dividend companies that are just as impressive.
In this article, I will provide two companies that have performed just as well as, if not better than, Shopify in the past six months.
This has been one of the most important industries for the past century
As of this writing, Shopify stock has gained 35% over the past six months. Canadian Pacific Railway (TSX: CP)(NYSE: CP) is one of the last companies that I would have expected to rival that performance. This company has been one of the most important companies in Canada for over a century. Founded in 1881, the railway industry was crucial in building Canada to the country it is today.
Currently, the company has approximately 20,100 km of rail spanning from Vancouver to Montreal. The company’s rail network also stretches into the northern United States as far south as Kansas City.
This past year, Canadian Pacific has shown a commitment to investing for growth and for the future. In early August, the company announced that it had acquired rail in the Atlantic region. The company’s management believes that this gives Canadian Pacific an opportunity for generational growth.
Regarding the claim in which I stated the company has been investing for the future, Canadian Pacific announced that it had begun work in installing a solar energy farm at its corporate headquarters. The company believes that it will eventually be able to generate more power than is used annually at Canadian Pacific’s headquarters. This shows that the company’s management is forward-thinking, as it moves away from traditional energy sources.
Over the past six months, Canadian Pacific stock has increased 34% as of this writing. This is an impressive feat considering railway companies are often regarded as reliable, slow-growing companies. Currently, Canadian Pacific stock pays a dividend with a forward yield of 0.90%.
The renewable energy industry is only going to grow in the future
One of my favourite industries for the next decade is the renewable energy industry. Utility companies are often seen as recession-proof since people will keep using, and paying for, electricity regardless of economic condition. With that said, my favourite company in this industry is Brookfield Renewable Partners (TSX: BEP.UN)(NYSE: BEP). As an added bonus, this company has shown incredible growth over the past few months.
Brookfield Renewable Partners is a subsidiary of Brookfield Asset Management. Because of this, investors can rest assured that its management is top notch. Brookfield companies are renowned for their excellent capital allocation. Currently, Brookfield Renewable is one of the largest renewable energy generators in the world. The company has a portfolio of diversified assets, capable of generating 19,300 MW of capacity.
As of this writing, Brookfield Renewable stock has gained 41% over the past six months. This is very impressive as many investors expected the stock to cool off after a red-hot 2019 that saw it grow 75% over the course of the year. Currently, the company pays a dividend with a forward yield of 3.08%.
Foolish takeaway
Often, investors turn to growth stocks to look for market-beating growth. In some cases, you will be able to find more defensive companies that also give outstanding price appreciation. Canadian Pacific and Brookfield Renewable stocks have rivalled Shopify’s growth over the past six months. You do not need to own a portfolio of high-risk growth companies to see great returns.
