At this point, my portfolio is pretty fleshed out with more then 20 stocks. This means that I’m at the point where I don’t really see a lot of value in adding too many new companies. However, there are very specific companies that I’ve been eyeing for years that I still haven’t pulled the trigger on. There’s a chance I might go ahead and buy these stocks for the reasons I’ll state below. If I do decide to add new stocks to my portfolio, I’ll most likely do it by buying these three companies.
A proven winner
There are so few stocks that have been able to post the same growth rate as Constellation Software (TSX:CSU) since its IPO. As of this writing, Constellation Software stock has managed to grow at a CAGR of nearly 37% since October 2006. That represents over 15 years of market-beating performance. This stock may have created many stock market millionaires over that period. If you had invested $10,000 into Constellation stock in October 2007, your position would be worth more than $1.1 million today.
Despite its large size, Constellation stock seems to have been able to sustain a very high growth rate. Over the past year, Constellation stock has gained almost 40%. This may be attributed to the company’s dedication to growth. In 2017, Mark Leonard, Constellation’s president, stated that he would be ceasing his annual shareholder letters as a way of discouraging copycat competitors. However, he did state earlier this year that Constellation will finally start targeting large VMS companies. It’s an exciting time to be invested in Constellation Software.
This stock has provided investors with steady growth
Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is another company that I’ve been eyeing for years. With a portfolio of more than $625 billion, it is one of the largest alternative asset management firms in the world. Brookfield has exposure to the utility, real estate, infrastructure, and private equity markets. Since August 1995, Brookfield stock has grown at a CAGR of 16%. That’s more than double the performance of the TSX, which has posted a CAGR of 6% over the same period.
Earlier year this year, Brookfield announced that it entered an agreement to develop a large-scale sustainable neighbourhood in the U.S. alongside Tesla. If that development turns out successful, it could be a major catalyst for Brookfield stock. That development, plus the leadership of world-renowned CEO Bruce Flatt, keep this stock at the top of my watchlist.
One of the top dividend companies on the TSX
I don’t currently own any shares of Fortis (TSX:FTS)(NYSE:FTS), but I did back in 2019. The reason I decided to drop it from my portfolio in December 2019, was because I wanted to move towards a growth-oriented portfolio. Taking advantage of the wild gains made in 2020, I may decide to shift some capital back towards the low-volatility utility stock.
Fortis is also an excellent dividend-paying company that appeals to me. Like many other investors, I hope to create a source of passive income by investing in dividend companies. A quick look at the list of Canadian Dividend Aristocrats shows Fortis at the number two spot. Having increased its dividend in each of the past 47 years, few companies in North America, and only one in Canada, can claim a longer dividend-growth streak. This is a top stock that I would be happy to hold in the future.