A well-balanced, self-directed investment portfolio should boast plenty of high-quality stocks you can bank on as an investor. Defensive assets that mitigate losses during turbulent markets are ideal in ensuring capital preservation. However, risk-averse investors can find Canadian growth stocks that do not pose a significant capital risk.
As we inch closer to 2022, the seasonal volatility on the TSX has started picking up the pace right in time for the holiday season. Many investors might be scrambling to find high-quality defensive picks due to the turbulence. However, it could be the right time to pick up shares of Canadian growth stocks that pose a low risk and immense long-term upside potential.
Today, I will discuss two such growth stocks that you can consider if you are a risk-averse investor looking for long-term wealth-growth opportunities.
Dollarama (TSX:DOL) stock could be an excellent play for risk-averse investors who want growth stocks. Rising inflation rates mean that the price for just about everything is soaring these days, only to get higher every day. Household products and food are two items that have been weighing on consumer wallets, forcing many people to look for price-friendly alternatives to expensive shopping locations.
This is where Dollarama could be perfect. Consumers initially drawn to the company’s stores due to lower prices might continue shopping at its locations after conditions improve. The conditions might be ripe for the company to attract more customers and retain them for a long time. At writing, Dollarama stock is trading for $60.96 per share, and its share prices are up by 16.74% year to date. It could be the right time to pick up its shares.
Restaurant Brands International (TSX:QSR)(NYSE:QSR) is another asset that could be worth adding to your portfolio if you are a risk-averse investor seeking growth stocks. As prices keep rising higher, consumers might opt for cheaper alternatives to more expensive food items they usually eat. The result is better business for fast-food chains, and Restaurant Brands International now owns four names under its belt.
Restaurant Brands boasts Burger King, Tim Hortons, and Popeyes Louisiana Kitchen in its portfolio. Amid the chaos caused by the pandemic, RBI also acquired a fourth brand: Firehouse Subs. The $1 billion deal could transform the chain into something massive in the coming years, thanks to the experience that RBI brings in. At writing, Restaurant Brands International stock is trading for $73.77 per share, and it is down by 2.87% year to date.
It is crucial to remember that there is no way for you to invest in the stock market with zero risk. However, some companies can provide you with more growth potential than others based on how external factors impacting their performance shape up. If you are a low-risk investor looking for relatively safer wealth-growth opportunities in the stock market, Restaurant Brands International stock and Dollarama stock could be ideal investments to consider.