Many American companies have broken well past the $1 trillion mark over the past decade. Many more will get there, even as the current recession and bear market set stocks back a few steps. To put it simply, this bear market will not last forever. The bull that follows could render today’s market pullback as just another blip on the journey to a wealthy retirement.
Looking to 2042 for significant gains
Now, it’s not easy to invest in bear markets unless you’re a long-term investor who can see past the next year or even the next decade. Looking to 2040 (the expected retirement date for many of today’s young investors), it’s the well-known blue-chip stocks that could make a move for that $1 trillion market cap milestone.
It’s no easy feat, and there are sure to be many more market corrections and crashes along the way. However, for those looking to retire in 2040 (or beyond), the Canadian stock I’m about to discuss can help you achieve your financial goals over the decades.
Undoubtedly, the recent bout of turbulence is a concern for many. But if you expand your investment horizon, the recent market dip seems more like an opportunity to make money rather than a derailer of your retirement plans.
Now, the largest company in Canada sports a more than $178 billion market cap. It would need to be a nearly six-bagger to hit the $1 trillion milestone. Such returns may be out of the question for the next decade. However, over the next 20 years, I do think various firms will make a run for the $1 trillion mark. Indeed, they’ll trail their U.S. counterparts by a few decades, but for Canadians, I do think the following mega-cap is more than worth holding onto.
CN Rail: A trillion-dollar company in the making?
CN Rail (TSX: CNR)(NYSE: CNI) is Canada’s fourth-largest company, with a $106.3 billion market cap. Indeed, it’ll take some time before the company can hit the trillion-dollar mark. Still, I believe it’s well on its way and it’s just a matter of time. Looking at the long-term chart, you’ll see it’s been on a steady upward climb over the years. Since 2022, CNR stock has clocked in 1,000% in gains.
Indeed, CNR has been a huge winner over the past 20 years. Still, it’s unlikely to gain attention from meme stock investors who want huge gains now. If you’ve got a 20-year horizon, I’d urge investors to look no further than the wide-moat rail kingpin. Keep in mind that CNR has also grown its dividend every year. With dividends included, CNR stock is more than a 10-bagger in 20 years.
With a growing 1.9% dividend yield (on the historically high-end) and a new, capable management team led by Tracy Robinson, I’d argue that CNR’s exponential historical growth will continue over the next couple of decades. Plus, the stock is in a strong position to weather short-term macro conditions considering its recent quarterly beat of $1.93 earnings-per-share (EPS) versus the $1.75 consensus target. You just need to be patient, and the strong returns will come.
Personally, I think CNR will become the first $1 trillion Canadian company.
