Finding that perfect mix of growth stocks to invest in takes time and plenty of patience. The market provides many growth options to choose from, including some stellar options for a volatile market that also boast a small income.
Here are two growth options that you may want to buy right now, irrespective of market volatility.
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Option 1 – as good as gold in a volatile market
When market volatility increases, so too will the demand for gold. Gold and other precious metals have been used as a store of wealth during times of uncertainty for millennia. But there’s an intriguing, less risky option for precious metal-seeking investors to consider.
Wheaton Precious Metals (TSX:WPM)(NYSE:WPM) is a precious metal streamer and not a miner in the traditional sense. What this means is that Wheaton provides upfront financing to traditional miners to setup the mine and begin operations. In exchange for that initial investment, Wheaton is allotted a certain amount of metals from the mine, which can be purchased at a discounted price.
And the discount can be significant. In the case of gold and silver, those prices can be as low as US$400 and US$4.50 per ounce, respectively. By way of comparison, the spot price for gold currently sits just over US$1,750 per ounce, and silver trades at nearly US$19 per ounce.
Speaking of market prices, once Wheaton purchases those metals at a discounted rate, the streamer can then sell them for the going market rate.
When compared to traditional miners, Wheaton’s business model is significantly lower risk. The model also allows the streamer to move on to the next mining opportunity, leaving the day-to-day operations to the traditional miner.
That’s part of the reason why Wheaton has an impressive portfolio of 21 active mines around the world with a further 14 mines in development.
Oh, and let’s not forget Wheaton’s dividend. The company pays out a quarterly dividend, which is based on the cash generated in the trailing four quarters. The next payout, which coincidentally goes ex-dividend tomorrow, will work out to US$0.15 per share or a yield of 1.83%.
This makes Wheaton a solid bet in a volatile market, appealing to growth and income-seeking investors alike.
Option 2- it’s all about convenience
When was the last time you wondered whether the convenience store and gas station combo is a good investment? That likely hasn’t happened, but you may start thinking about it once we talk about Alimentation Couche-Tard (TSX:ATD).
Couche-Tard is one of the largest gas station and convenience store operators on the planet. The company has over 14,000 locations scattered across more than a dozen countries around the world.
Part of the reason for that immense growth is Couche-Tard’s insatiable appetite for strategic acquisitions. Over the years, the company has acquired smaller competitors in new markets, allowing it to stitch together a massive network.
In recent years, growth has also been facilitated by internal shifts. Couche-Tard continues to revamp its menu offerings, adapting to the changing tastes of its customers. The company is also in the process of rolling out an electric vehicle (EV) network, targeting 200 charging stations across the U.S. over the next two years.
That’s a significant and potentially lucrative shift for the company.
First, it pushes Couche-Tard into the coveted and still young market of EV charging. Rising gas prices and a plethora of new EV options are increasingly enticing consumers to go electric. And while EV charging still takes longer than refueling traditional internal combustion engines, this represents another opportunity for Couche-Tard.
Gas stations are not destinations, but rather, interim stops we make on the way to somewhere else. For example, grabbing milk on the way home, or putting some gas in the car before heading out for the evening.
Establishing a solid EV network while continuously improving food options at stations could eventually turn Couche-Tard locations into destinations for customers (while their vehicles charge).
In short, Couche-Tard, like Wheaton, are both stellar options in a volatile market.
