Canadian Stock Investors: Want to Become a Millionaire?

Regarding the portion of the world’s millionaires that live in Canada, the country ranks 8th ,with 3% of the world’s millionaires living there.

| More on:

Image source: Getty Images

According to the Global Wealth Report 2021, published by the Credit Suisse Research Institute, total global wealth grew 7.4% in 2020.

For the first time in history, more than 1% of global adults are millionaires. Most of this wealth is concentrated in just three countries: the U.S., China, and Japan. These countries contain over 50% of the world’s millionaires.

Canada’s rankings

Regarding the portion of the world’s millionaires that live in Canada, the country ranks 8th, with 3% of the world’s millionaires living in the Great White North.

The U.S. far outranks any other country, with 39.1% of all of the world’s millionaires. China and Japan rank a distant 2nd and 3rd, with 9.4% and 6.5% respectively. In the report, millionaires are defined as individuals with a personal wealth of over US$1 million.

When considering millionaires as a portion of a country’s population, Switzerland, Australia, and the United States are at the top.

In these countries, 14.9%, 9.4%, and 8.8% of the population respectively, have personal wealth over $US1 million. Although China holds nearly 10% of the globe’s wealthy individuals, its vast population makes millionaires a rarity in the country.

Canada is in the top 10 spot with millionaires as a portion of its population. Of its population, 5.6% have personal wealth over $US1 million.

Coronavirus exacerbates global wealth inequality

As expected, the devastating effect of the COVID-19 pandemic exacerbated the inequality of wealth around the world.

According to the authors of the Credit Suisse report, “The verdict is unanimous – the indices all agree that global wealth inequality rose in 2020 by a substantial amount. The share of wealth held by the top 10% increased, as did the share of the top 1%.”

As home prices continued to soar, even during the pandemic, so did the wealth of homeowners. This certainly benefited the population of wealthier nations, like those in North America. The same applies to the booming equities market. Again, the number of gains in the stock market disproportionately affected the net worth of individuals in wealthy countries.

Stocks contribute to wealth

As history has shown, long-term investments in high-quality equities have proven to be an excellent way to accumulate wealth.

If you are searching for high-quality, buy-and-hold stocks to add to your portfolio, consider a stock like Fortis (TSX:FTS)(NYSE:FTS).

As one of the largest utilities on the continent, Fortis makes for a stable investment. Most of Fortis’ business stems from regulated assets bound by long-term contracts. Those contracts, known as power-purchase agreements (PPAs) provide Fortis with a stable and recurring source of revenue. These PPA contracts typically span one or more decades in duration.

Currently, Fortis operates in 10 regions across Canada, the U.S., and the Caribbean. When combined, these areas provide the company with approximately 3.4 million customers across its electric and gas segments.

Growth in the company comes not only through acquisitions but through an aggressive capital improvement campaign. As the world turns toward renewable energy, Fortis is at the forefront.

Fortis currently has a market cap of nearly $26 billion. With shares trading at $54.90 as of writing, the dividend yield is 3.6%.

Stable dividend payments are a great tool for building personal wealth. Fortis has maintained its dividend increases for 47 consecutive years. The company also plans to maintain that pace until at least 2025 with an average annual bump of 6%.

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.

The Motley Fool recommends FORTIS INC. Cindy Dye owns shares of FORTIS.

More on Dividend Stocks

Silver coins fall into a piggy bank.
Dividend Stocks

How I’d Invest $1,000 in October to Generate Passive Income for Life

You can earn reliable passive income each year by investing $1,000 in this Canadian dividend stock right now.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

TFSA: Invest $45,000 in These 3 Stocks and Get $2,392 in Passive Income

Here are three of the best Canadian dividend stocks TFSA investors can consider buying right now to earn handsome passive…

Read more »

Modern buildings in business district
Dividend Stocks

3 REITs Offer a Good Mix of Growth Potential and Dividends

The real estate sector in Canada is still heading downwards, and the stocks are mimicking the pattern, so you can…

Read more »

potted green plant grows up in arrow shape
Dividend Stocks

2 of the Best Dividend Stocks to Buy for Growing Passive Income

If you're building a long-term portfolio, these two dividend stocks are some of the best investments to buy for growing…

Read more »

edit Woman calculating figures next to a laptop
Dividend Stocks

Create $500 in Tax-Free Passive Income With $0 in the Bank

Even if you don't have a cent to invest, you can start creating passive income to allow you to create…

Read more »

Dividend Stocks

Passive Income: 2 Dependable Dividend Stocks to Buy Today and Own Forever

Now’s a great time to think about building a passive-income stream. Here are two dividend stocks to have on your…

Read more »

Dividend Stocks

3 Dirt-Cheap TSX Stocks (With +5% Yields) to Buy Right Now

Here are three dirt-cheap TSX stocks that trade with elevated dividend yields and solid growth prospects ahead.

Read more »

sale discount best price
Dividend Stocks

TFSA Investors: 2 Cheap TSX Stocks to Buy Now for Passive Income

Top TSX dividend stocks are now on sale for TFSA investors seeking passive income.

Read more »