Stocks are profitable investments if you can buy low and sell high. This strategy works for people who want to earn quick bucks in a relatively short period. But if you won’t need the money anytime soon, you can hold stocks long-term. Your money could then double or triple in three years, even if the company pays zero dividends.
On the TSX, Capital Power (TSX:CPX), StorageVault Canada (TSX:SVI), and Capstone Copper (TSX:CS) have rewarded investors with significant gains through price appreciation. Can these stocks repeat history and do it again? The answer is most likely yes.
Capital Power has been a steady performer in 2022, notwithstanding heightened market volatility. The $5.74 billion company builds, owns, and operates high-quality, utility-scale generation facilities, including renewables and thermal. Investors are up 28.23% year-to-date and enjoy a hefty 4.7% dividend.
The current share price is $49.33 or nearly double the $24.80 it was three years ago. Capital Power is a solid pick because it’s also a dividend aristocrat. Management has raised its dividends for eight consecutive years. On July 29, 2022, the Board of Directors approved a 6% increase in the annual dividend.
In the first half of 2022, revenues and net income increased 29% and 66% respectively versus the same period in 2021. Capital Power’s President and CEO, Brian Vaasjo, said, “We continue to execute on our strategy of acquiring mid-life contracted natural gas assets that are strategically positioned within their power markets.”
The latest news is that Capital Power, in partnership with Manulife Investment Management, will acquire Midland Cogeneration, America’s largest gas-fired cogeneration plant.
Fastest-growing storage company
StorageVault flies under the radar but the nature of its business is enduring. The $2.55 billion company is 15 years old and is Canada’s fastest-growing storage company. Today, the stock trades at $6.73 per share (-6.58% year-to-date) from $2.83 on August 5, 2019. The company recently increased its quarterly dividend by 0.5% beginning Q3 2022 to $0.002803 per common share.
The company owns, manages, and rents self-storage and portable storage spaces. Individual and commercial clients trust StorageVault to take care of their belongings. Service offerings for businesses, healthcare institutions, and government sectors include document storage, data management, and shredding. Over the past few years, the company has gained popularity and experienced growth due to the rise in e-commerce.
FlexSpace Logistics, its leading brand, is at the forefront of the evolving last-mile delivery space. Management expects the new partnership with Pickups, an innovative on-demand last-mile delivery service platform, to be the next growth driver.
Multi-functional red metal
Capstone Copper trades at only $2.68, which is a bargain and a good entry point. This mining stock is a TSX30 2021 winner (ranked no. 5) but it is down 51.97% year-to-date. Three years ago, its share price was only $0.51.
The $1.85 billion copper-silver producer has producing mines in the U.S., Mexico, and Chile. Management is confident that its district-approach to Capstone’s asset base will create transformational near-term growth. While there are sustainability challenges, demand for the red metal is significantly increasing as the world transitions to cleaner energy.
Roughly 25 million metric tons of refined copper was consumed in 2020, and over the next 10 years, worldwide demand is expected to rise by 31%. Considering that 72% of copper consumption comes from the power, utilities, and electrical products sector, there are many reasons behind the surge in demand, but it mainly comes down to the global commitment to fight climate change.
Worth the wait
Capital Power, StorageVault, and Capstone Copper have visible growth runways. Taking positions in these stocks and holding them for three years isn’t a bad proposition, particularly when considering the potential windfall in a short time period.