If this year has taught investors anything, it’s that stocks fall in value from time to time. Although it can be unsettling to see your positions decrease in value, that actually creates massive opportunities for investors. It allows you to accumulate shares at attractive discounts. In this article, I’ll discuss three stocks that I own and would buy more of if they continue to fall.
My top growth stock
If I could only buy one stock, it would be Shopify (TSX: SHOP)(NYSE:SHOP). That’s why I would welcome any opportunity to buy shares at a discount. A company that needs no introduction, Shopify is known around the world for its e-commerce platform. This company helps retailers by providing many of the tools necessary to operate online stores. Shopify’s inclusive business offers solutions that can help a merchant of any size. This includes first-time entrepreneurs and large-cap enterprises alike.
In terms of an investment, Shopify checks off a lot of boxes for me. First, it leads an important and growing industry. Second, its business model relies on recurring payments. Finally, the company is led by a founder that holds a large ownership stake in the company. When I look for growth stocks, these are three characteristics that I look for. As long as Shopify meets these criteria, I will continue to remain confident in the company, regardless of the volatility that may come in the short term.
An excellent mid-cap stock
Topicus.com (TSXV: TOI) is another company that I would consider buying if it fell in value. This company acquires vertical market software businesses in Europe. If that business model sounds familiar, it’s because it was once a subsidiary of Constellation Software, a very popular and successful Canadian tech company. Despite now operating as its own entity, Topicus still finds itself in a unique position.
First, it maintains close ties with its former parent company. Six members of Topicus’s board of directors are executives from Constellation Software. This includes Constellation’s founder and president, Mark Leonard. If Topicus can lean on this wealth of experience, it could avoid many of the pitfalls that hinder smaller companies from growing.
A company that could power your portfolio
Finally, I would strongly consider buying more shares of Brookfield Renewable Partners (TSX: BEP.UN)(NYSE: BEP) should it fall in price. This company is one of the largest producers of renewable utilities in the world. Its facilities have a generation capacity of 21 GW. Upon the completion of its current construction projects, Brookfield estimates that it will more than double its current generation capacity. That would solidify its position atop the emerging renewable utility industry.
In terms of its stock, Brookfield Renewable is attractive from a growth and dividend point of view. Since its inception, Brookfield Renewable stock has generated an annualized return of 17%. In addition, the stock has grown its dividend over the past 11 years, at a CAGR of 6%. With characteristics that make this an appealing stock for growth and dividend investors alike, I can see myself adding more shares in the future.
