3 Stocks That Could Double Your Money in May 2021

Which three stocks would I peg as potential big winners this month?

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If 2021 has taught investors anything, it should be that choosing winners in the stock market isn’t as easy as 2020 made many believe. A lot of very good companies have faltered so far this year. A lot of it not seemingly due to any real negative aspect of the company. However, that shouldn’t deter investors from holding stocks and continue to keep looking for those potential companies that can help bring them that much closer to financial independence. In this article, I will discuss three stocks that could double your money in 2021.

One of my top picks

Since writing my first article covering goeasy (TSX:GSY), the stock has been on an absolute tear. Goeasy stock has gained 180% since that article and many investors are now starting to realize this company could be a market beater. For those that are unfamiliar, goeasy has two distinct business segments. Its easyfinancial business provides high-interest loans to subprime borrowers and easyhome sells furniture and other durable home goods on a rent-to-own basis.

Goeasy first caught my eye because of its strong dividend growth. Having grown its dividend each year since 2015, goeasy has made it onto the list of Canadian Dividend All-Stars. More impressively, the quarterly dividend has grown more than six-fold since then increasing from $0.10 to $0.66 per share. Goeasy’s dividend payout ratio is also a very modest 20.55%, which suggests the company is more than capable of increasing this distribution in the coming years. With an excellent dividend and market outperformance, how can you not like goeasy?

The top growth stock in Canada

When it comes to doubling your money, one obvious place to look would be at the top growth stocks. In Canada, there is no growth stock more appealing than Shopify (TSX:SHOP)(NYSE:SHOP). The company is an internationally recognized enabler of ecommerce, providing merchants of all sizes an opportunity to operate online stores. Shopify made headlines in 2020 when it became the largest company in Canada by market cap.

Shopify’s recent earnings report should have impressed any current or potential shareholder. The company reported nearly US$3 billion in sales for 2020, which was good for an 86% year over year growth in revenue. Shopify’s Q1 2021 revenue was also 110% greater than in Q1 2020, suggesting that the company’s strong growth has been continuing even after the pandemic. Shopify continues to defeat the odds, however its stock is still being punished. It’s only a matter of time until investors start buying into this stock heavily again.

One of the big market winners in 2020

Last year, investors fell in love with Goodfood Market (TSX:FOOD) for its convenience during the pandemic. The company is one of the largest providers of online grocery and meal kits in Canada. Currently, Goodfood has more than 1.4 million monthly website visits. This places the company in the top 5 among all Canadian online grocery providers.

Goodfood Market has continued to grow its customer base even after the pandemic, which bodes well for shareholders. However, the stock has fallen more than 44% since reaching its peak earlier this year.  When excellent companies are punished like that for no good reason, it’s not unheard of to see them dramatically shoot up in value. When that will happen? It’s hard to say. However, Goodfood Market has just a good chance as any stock to pull that off.

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 Jed Lloren owns shares of Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool recommends Goodfood Market.

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