Investors are often told of the benefits of investing in stocks that provide handsome dividends, as well as those that provide growth. But what about stocks that can cater to both income and growth? Fortunately, investors hungry for growth have plenty of options to consider.
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Let’s go shopping for some superb investments
Now that the official start to the holiday shopping season has started, it seems right to do some shopping in your portfolio too. For investors who are hungry for growth (and income) stocks, there are plenty of options to consider.
The first such option is Restaurant Brands International (TSX:QSR)(NYSE:QSR). Restaurant Brands is the name behind some of the most popular fast-food brands on the market. That list currently includes Burger King, Tim Hortons, and Popeyes.
The reason I say currently is that Restaurant Brands recently announced an acquisition to add to its three existing brands. U.S.-based FireHouse Subs, a sandwich shop with 1,200 locations across the U.S., Canada, and Puerto Rico will become that fourth brand.
The all-cash deal for FireHouse Subs is valued at US$1 billion.
Apart from the expected long-term growth from its latest acquisition, there’s much more to love about the stock. Investors hungry for growth will also appreciate the appetizing quarterly dividend.
In the case of Restaurant Brands’ dividend, the juicy 3.53% yield is a great way to augment long-term growth potential. Turning to the company’s quarterly results, Restaurant Brands CEO José Cil noted that all product categories are nearly all back to pre-pandemic levels or better.
In other words, investors hungry for growth can expect Restaurant Brands to be a stellar performer in the next year.
Where to go every week when you need food?
The best investments are those with which we interact on a daily basis and take for granted. That includes both defensive stock picks like utilities and telecoms, but also extends to some less obvious members.
Grocery stores are perfect examples of that. They perform a necessary service yet are often overlooked as the stellar investments that they are. And the grocery stock that investors should be hungry for today is Metro (TSX:MRU).
Metro is one of the largest grocers in the country, with a network of over 900 grocery and pharmacy locations. Those locations are predominately located across Quebec and Ontario.
The appeal of Metro surged during the pandemic when grocery stores were deemed necessary. This led to a huge surge in sales for the company.
Now that the pandemic is nearing its end, we may see sales numbers from prior quarters begin to drop. That being said, the appeal of a grocery stock as a core part of your portfolio remains.
One more reason why investors that are hungry for growth will love Metro is for the dividend. The current 1.60% yield is a decent return, but hardly the highest yield on the market. What Metro lacks in yield it more than makes up for in its consistency.
Metro has provided investors with a handsome annual uptick to that dividend for well over a decade. This makes the stock an appealing option for not only investors hungry for growth, but income-seeking investors too.
Are you hungry for growth stocks like these?
In my opinion, both stocks offer investors a superb path for long-term growth. Both stocks also provide an opportunity for investors to establish a growing income stream too. That makes them intriguing candidates to include in any well-balanced portfolio.
Buy them, hold them and watch them grow.
