There are plenty of reasons to want to expedite the growth rate of your RRSP-based nest egg. You might be nearing retirement and still falling short of the amount you were hoping to have at retirement. Or you simply want to reach a milestone with your retirement funds, so you can divert more funds to other, more short-term financial needs or large-ticket purchases.
Whatever the reason, there are three stocks that may help you achieve desired results.
A powerful growth catalyst
TFI International (TSX: TFII)(NYSE: TFII) has always been a significant growth stock. It grew over 1,000% between 2009 and 2020 and at a very consistent pace. Annualized, that’s over 90% capital appreciation a year — a number many stocks take several years to achieve. But its growth in the last two years has been too explosive to be consistent.
The stock rose over 440% in less than two years, and it’s now normalizing, but at a relatively slow pace. And since it’s quite fairly valued right now is also likely to slow down the correction. The current 17.8% discount is not nearly good enough to consider buying the company now, but you should not wait for the stock to reach or below its pre-pandemic level since its organic growth might prevent that and buy whenever this dip matures.
A real estate company
A slightly more reasonably paced version of TFII’s post-pandemic growth can be seen in the Colliers International Group’s (TSX: CIGI)(NASDAQ: CIGI) growth. The stock also saw an expedited growth phase post-crash but only about twice as fast, and it’s already deep into the recovery phase, with the stock down over 19% from its recent peak.
But if we consider the long-term growth history of the company, the 10-year CAGR of 24.7% doesn’t seem too heavily skewed by the recent rapid growth. Even if we take the rapid growth out, a company growing at about 20% a year will double your capital in half a decade. That kind of growth can have powerful positive implications for your RRSP portfolio, especially if you are decades away from retirement.
A time-tested growth stock
If you are looking for a company that didn’t change its growth pattern much in the last two years and has a long-term and steady growth record, few can match Constellation Software (TSX: CSU). You would have to look past a very high price tag, but if you are amiable with a company you can’t even buy one whole share of with $2,000, you can lock in incredible growth in your portfolio and expedite your nest egg’s growth considerably.
The company comes with a 10-year CAGR of 38.8%, putting it among the most potent growth stocks in the country and one of the few that offer consistency with such growth. Naturally, the stock is relatively overvalued, but that’s a small price to pay for a company that could potentially double your capital every three years.
Foolish takeaway
It’s easy to buy powerful growers in a bull market, but not all of those stocks may offer long-term growth, irrespective of the market dynamics. When you are choosing stocks for your long-term retirement portfolio, the long-term nature of their capital-appreciation potential is one trait you cannot and should not compromise on.
