The possibility of retiring early has been a topic of discussion much more in recent years than it was in the past. The age of 65 has become synonymous with retirement. In reality, if you’re willing to put in the time and make sacrifices, retiring well before the age of 65 could be a possibility for you.
The stock market provides middle-class individuals with the chance of creating enough wealth to retire early. It takes years, though, for compound interest to work its magic. So, the earlier your start, the earlier you can potentially step away from your desk job.
Canadian investors have no shortage of options for investing in the stock market. Investing in individual stocks may seem intimidating at first or even too risky for your liking. But gradually, you’ll build a diversified portfolio that you can feel good about holding for the long term.
Whether you’re new to stocks or a seasoned investor, here’s a list of three top Canadian stocks to add to your watch list this month.
Canadian stock #1: Brookfield Asset Management
Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is one of my top picks for new investors. I have no issue recommending it to someone who’s been investing for years, but the diversification that the Canadian stock provides its shareholders is why it’s a great pick for anyone in the process of building a portfolio from scratch.
The $110 billion asset management company invests in all types of businesses across the globe. Real estate, energy, and infrastructure are three of the main areas of focus for Brookfield Asset Management.
As diversified as the Canadian stock is, it has had no problem outperforming the market’s returns. Shares are up a market-crushing 125% over the past five years, and it’s close to a five-bagger over the past decade.
The stock is also reasonably priced considering what it can bring to a portfolio. It’s trading at a forward price-to-earnings ratio below 20 right now. There aren’t many companies on the TSX priced that low with that kind of market-beating growth track record.
Canadian stock #2: Constellation Software
This tech stock might be one of the best-kept secrets on the TSX over the past 10 years.
Constellation Software (TSX:CSU) stock is up more than 2,500% since late 2011. Shares have understandably cooled off in recent years, but there’s no reason to believe it will start lagging the market anytime soon.
Now nearing a market cap of $50 billion, the Canadian stock is relying more heavily on acquisitions to help fuel revenue growth. It’s certainly not shy about putting its capital to use, which is why I’m continuing to bet on the company.
At a price tag of $2,000 per share, it’s not exactly a cheap stock for new investors. But at least from a valuation perspective, it’s a bargain compared to the other high-growth tech stocks on the TSX.
Canadian stock #3: goeasy
goeasy’s (TSX:GSY) $3 billion market cap makes it by far the smallest company on this list. It would also be my pick to be the top performer amongst the three over the next five- and 10-year periods.
The Canadian stock is a consumer-facing financial services provider. Canadians can take out all kinds of loans from goeasy, with home and auto being two of the company’s largest categories.
Shares are up more than 600% over the past five years. It’s been an incredible run as of late, but that growth might not be slowing down anytime soon.
The country’s reopening could lead to a spike in consumer spending. If that does happen, goeasy could see a massive increase in demand for its services.