3 Unstoppable Growth Stocks Headed for Ultimate Returns in 2022

If you want growth stocks, these can provide it not just for this year, but perhaps years and decades to come. And each still offers dividends!

money cash dividends

Image source: Getty Images

Growth stocks have gotten a bad rap in the beginning of 2022. Many fell to 52-week lows as Motley Fool investors and others looked for stable returns from passive income stocks. However, not all growth stocks are created equal.

In fact, this year there are growth stocks that should see massive returns in 2022. So let’s look at three you may want to consider today.

Waste Connections

Waste Connections (TSX:WCN)(NYSE:WCN) recently received a boost from one analyst recommending the company for solid performance in 2022. There were several reasons behind this. Waste Connections isn’t affected by inflation or supply-chain risks, it was durable even during the pandemic, and it continues to grow through acquisitions and investments.

Therefore, Waste Connections is a safe, solid company among growth stocks for Motley Fool investors. Furthermore, it offers a dividend of 0.67% as of writing. While I wouldn’t call it valuable at these levels, it certainly is bound for more growth as a protection against inflation. Especially with a consensus target price of $191 as of writing.

Shares are up 25% in the last year, compared to 13% for the TSX.

DRI Healthcare Trust

Another research report came out for DRI Healthcare Trust (TSX:DHT.UN), touting the company as a strong buy for both passive income and among growth stocks. While other health care companies focus in on biotech or pharma, which come with risk, DRI instead acquires royalties on medical products that have “significant life-saving potential.”

It’s the diversified portfolio as well that allows the company to offer such a strong dividend and growth trajectory for Motley Fool investors. It can provide consistent cash flow, while still looking for further opportunities to bring in more royalties. All while receiving a 4.37% dividend yield, with analysts projecting the company to perhaps double in the next year.

Shares are down 24% in the last year.

BRP

Finally, analysts are also bullish about the future of BRP (TSX:DOO)(NASDAQ:DOOO), and believe it’s one of the growth stocks that could double in the future. This could happen if it merely returned to its historical performance. This comes from a variety of catalysts coming together to create the potential compound annual growth rate (CAGR) of between 7% to 10% in the next few years.

A new See-Doo Switch could generate $600 million in revenue per year in the next few years, management stated recently. Furthermore, its Ghost boating project once unveiled this spring should hep the company reach its $1 billion in revenue target for 2025. Finally, entering the motorcycle segment should result in $500 million in annual revenue. Yet it remains at a discount compared to this growth potential, trading at 11.2 times earnings, with a $137 target.

Shares of BRP are down 5% in the last year, compared to the 13% among growth stocks on the TSX.

Foolish takeaway

These three growth stocks have substantial opportunity in the next year, and beyond. Each is in an industry with sustainable growth, with analysts boosting targets across the board. For Motley Fool investors wanting growth in their portfolio, I would certainly consider these.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Stocks for Beginners

money cash dividends
Stocks for Beginners

Got $1,000 to Invest in Stocks? Put It in This Index Fund

This low-cost beginner-friendly ETF is a great way to invest $1,000.

Read more »

money cash dividends
Dividend Stocks

Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

Want some absurdly cheap stocks for your portfolio? Here are two options trading at a huge discount right now.

Read more »

Happy Retirement” on a road
Dividend Stocks

Get Out of Debt Once and for All, And Turn It Into $12,592.38 in Your TFSA

By astutely managing your budget and paying down debt, you can free up more money to invest in your retirement.

Read more »

TFSA and coins
Stocks for Beginners

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would personally invest a $7,000 TFSA contribution.

Read more »

Man holding magnifying glass over a document
Stocks for Beginners

Watching This 1 Key Metric Could Help You Beat the Stock Market

This data marker can tell you exactly what you can expect from the future of companies, and whether that's a…

Read more »

gold stocks gold mining
Stocks for Beginners

Agnico Eagle Mines Stock Soars Higher on 10.5% Increase in Gold Reserves

AEM stock (TSX:AEM) posted strong earnings, bringing the share price back up after falling 15% so far in 2024. And…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Tech Stocks

Topicus Stock Jumps 16% on Killer Full-Year Earnings

Topicus (TSXV:TOI) reported strong earnings after revenues surged higher, and with a volatile market this is exactly what you want…

Read more »

Economic Turbulence
Dividend Stocks

Intact Financial Climbs to All-Time High on Buybacks, With an 11% Dividend Increase

Intact stock (TSX:IFC) rose after the company reported a difficult year, but managed to increase buybacks and its dividend.

Read more »