The TSX today is a volatile place, filled with stocks that no longer seem like a sure thing compared to a year ago. Tech stocks in particular have been hammered the last month, with only a slight recovery happening this week. But there are still growth stocks out there that could continue to do well. In fact, some offer dividends.
Today, I’m going to focus in on two growth stocks I would consider for Motley Fool investors. Each has a promising growth path, along with stable income for those wanting long-term holds. So, let’s get right to it.
Brookfield Infrastructure
Brookfield Infrastructure Partners (TSX: BIP.UN)(NYSE: BIP) owns and operates “quality, long-life assets that generate stable cash flows,” according to the company website. The idea is to create long-term value, acquiring infrastructure assets around the world.
Of course, that’s what makes it one of the growth stocks to discuss today. Infrastructure companies with low maintenance and high barriers to entry is exactly what investors want these days. The assets it holds are mainly in utilities and energy, with long-term contracts to look forward to. It’s these strong, stable payments that make it a great buy in today’s volatile market.
Brookfield Infrastructure is up 14% in the last year, and it certainly hasn’t seen the crash that other companies experienced over the last month. Furthermore, management seems confident in the stock’s future, recently announcing the closing of $300 million worth of subordinated notes in a public offering.
Finally, Motley Fool investors get a great dividend on the TSX today. As of writing, that dividend sits at a yield of 3.46%. Sure, it’s not the highest yield. But coupled with such strong growth, this is a winning stock for your portfolio.
Canadian Net REIT
Canadian Net Real Estate Investment Trust (TSXV: NET.UN) is another of the strong growth stocks to consider — especially if we start seeing more and more people return to somewhat normal lives. The pandemic should have done Canadian Net REIT in, as it mainly owns fast-food chains, oil and gas companies, retailers, and convenience stores. But it’s quite the contrary; it grew as steady as ever.
In fact, it recently impressed Desjardins Securities analyst Kyle Stanley, who rated the REIT as a “buy” this week. Stanley wrote that the company delivered 15% compound annual funds from operations growth since 2017, leading the industry. He believes this should continue, especially as it continues to expand throughout Quebec, Ontario, and Nova Scotia.
While its choice of tenants may make investors wary right now, these are long-term agreements that make it one of the growth stocks you want. These agreements create stable, long-term cash flow, which is how it sustains a strong dividend yield of 4.33% as of writing.
Shares of Canadian Net REIT are up 22% in the last year, with analysts pegging it at a target price of $9.10. That’s a potential upside of 13% as of writing. So, again, there’s not that much dividend, but when coupled with solid share movement, it’s one of the growth stocks you practically have to have.
