Become a Self-Made Millionaire if the Market Corrects in 2021

Market corrections or crashes can be ideal for making a fortune. If you think that market volatility is coming in 2021, it might be your chance to start a millionaire-maker portfolio.

| More on:
Profit dial turned up to maximum

Image source: Getty Images

A lot of people think that if they weren’t born rich or they don’t have the one-in-a-million high IQ, becoming a millionaire is extremely difficult, if not impossible. And they are partially right. But if you have enough savings, enough time, and you are able to take advantage of certain opportunities, the stars don’t have to align to make you a millionaire.

And these opportunities are plentiful in market volatility. So, if you believe a market correction or crash is in the cards for 2021, you might consider investing in two millionaire-maker stocks.

An industrial stock

Toromont Industries (TSX:TIH) is an evergreen growth stock and one of the oldest aristocrats in the country. It has been raising its dividends for over three decades. From a capital growth angle, the stock offers a 10-year CAGR of 19.5%. $15,000 growing at this rate for two decades can turn into half-a-million dollars. That’s what you might be able to achieve, even if you buy the stock outside a market crash.

But a stock like this is usually overvalued, and with good reason. But a market correction or crash can change that and allow you to buy this stock near or below the fair price at a discount. In the last crash, the stock dropped by about 25%, and if you can hit that sweet spot, you might be able to reach your millionaire goal with this stock much faster.

A financial aristocrat

There are plenty of aristocrats in the financial sector, but few of them offer the capital growth opportunity to rival goeasy (TSX:GSY). It is a relatively new aristocrat, but its dividend growth has been more than generous. Since 2016, it has grown its payouts by 260%.

That kind of dividend growth is hard to sustain, but even if the company keeps growing its payouts like this for a couple of more years, you might enjoy a healthy dividend payout. But even if you discard that, considering the growth prospects with a 10-year dividend-adjusted CAGR of 31.6%, the company can make you half-a-million dollars in about 13 years with a $15,000 investment.

And you can aggressively fast-track this growth by buying during market volatility. In the last crash, the stock fell by about 63%. If you buy this company when it hits rock bottom and hold on to it for about a decade, it might have the potential of making you a millionaire all by itself (if it can continue to keep growing at its current pace).

Foolish takeaway

With just $30,000 invested, these two stocks might have the potential to make you a millionaire in about two decades. You can find more such growth stocks and diversify further for the safety of your capital. But your best bet to become a self-made millionaire is buying amazing companies when they are trading low and hold on to them for the long term.

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.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »