3 Growth Stocks That Could Make You a Millionaire by 2030

It could take a major investment, but if you’re serious about making $1 million by 2030, this is how I would do it with these growth stocks.

| More on:
funds, money, nest egg

Image source: Getty Images

The TSX is still down by 9.5% year to date, and, in fact, has sunk 6% since the beginning of December. But in my view, this just gives you even more of an opportunity to buy cheap growth stocks if you’re hoping to reach millionaire status — even by 2030. It would take an investment of about $150,000, but if you’re serious about reaching $1 million, here’s how I’d do it.

WELL Health

I’m going to recommend the baby of the bunch. WELL Health Technologies (TSX:WELL) is a strong choice for investors wanting a lot from their growth stocks in the next few years. The company boomed during the pandemic, because of its telehealth offerings. Yet while investors have slowed down their purchases, the company hasn’t.

WELL stock is one of the growth stocks continuing to grow through acquisitions. However, most recently, it hit record results, reaching revenue that beat out records through organic growth as well. So, with shares at just $2.70, and only 46.65% of equity needed to cover all debts, it’s a safe buy I’d hold for even longer than seven years.

goeasy stock

goeasy (TSX:GSY) has just been in the wrong industry at the wrong time. It didn’t seem that way a year or two ago. Since 1990, it’s expanded to loans of all kinds and seen record results during its most recent quarter.

But because it’s classified as a tech stock, investors dropped it like a hot potato. That’s provided investors with an opportunity to buy up growth stocks like this one while it trades at just 11.18 times earnings as of writing. Plus, you get access to a 3.42% dividend!

CIBC

Not all companies have to be tech stocks to be considered growth stocks. In fact, we could see a lot of growth from Canadian Imperial Bank of Commerce (TSX:CM) in the next seven years. It’s had an overhaul recently, really focusing in on customer satisfaction, and that’s created more interest in this Big Six bank.

Even more interesting is that it’s one of the cheapest of the bunch. Shares trade at just 8.25 times earnings, and after a stock split are the cheapest by price at $55.11 as of writing. You can also gain a 6.13% dividend yield — by far the highest of the Big Six as well.

Making a million

To reach $1 million by 2030, that means each of these growth stocks need to make $333,333 in the next seven years. First, we’ll look at these three stocks reaching 52-week highs in the next year. For WELL Health stock, that’s a 110% upside; for goeasy stock, it’s 71% upside; and for CIBC stock, it’s 54% upside. Then we consider the average compound annual growth rate (CAGR) over the following six years. This comes to 68% for WELL Health, 29.3% for goeasy stock and 5.76% for CIBC stock.

StockYearShares OwnedAnnual Dividend Per ShareAnnual DividendAfter DRIP ValueYear End Shares OwnedYear End Stock PriceNew Balance
WELL12650C$0.00C$0.00C$7,128.502650C$5.64C$14,946.00
WELL22650C$0.00C$0.00C$14,946.002650C$9.48C$25,109.28
WELL32650C$0.00C$0.00C$25,109.282650C$15.92C$42,183.59
WELL42650C$0.00C$0.00C$42,183.592650C$26.74C$70,868.43
WELL52650C$0.00C$0.00C$70,868.432650C$44.93C$119,058.97
WELL62650C$0.00C$0.00C$119,058.972650C$75.48C$200,019.06
WELL72650C$0.00C$0.00C$200,019.062650C$126.80C$336,032.02
GSY1348C$3.66C$1,273.47C$38,525.90355.05C$182.97C$64,963.46
GSY2355C$6.21C$2,202.86C$66,642.48364.51C$234.60C$85,514.96
GSY3364.51C$6.52C$2,374.97C$87,914.78372.42C$303.34C$112,970.66
GSY4372.42C$6.84C$2,547.85C$115,540.14378.97C$392.22C$148,640.55
GSY5378.97C$7.18C$2,722.30C$151,381.60384.38C$507.14C$194,933.28
GSY6384.38C$7.54C$2,899.18C$197,848.67388.82C$655.73C$254,964.12
GSY7388.82C$7.92C$3,079.35C$258,057.44392.47C$847.86C$332,761.93
CM11922C$3.36C$6,458.88C$112,318.382000.02C$84.70C$169,401.78
CM22000C$5.19C$10,387.00C$180,627.422118.22C$89.90C$190,419.42
CM32118.22C$5.51C$11,661.03C$202,350.992243.72C$95.07C$213,319.15
CM42243.72C$5.84C$13,093.02C$226,716.622376.96C$100.55C$239,003.80
CM52376.96C$6.19C$14,702.77C$254,049.242518.44C$106.34C$267,815.86
CM62518.44C$6.56C$16,512.59C$284,714.182668.69C$112.47C$300,140.38
CM72668.69C$6.95C$18,547.60C$319,122.242828.28C$118.95C$336,410.32

Then by 2030, you will have a total of $1,005,204.27 from an initial investment of $150,240.43 based on today’s prices.

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 positions in Canadian Imperial Bank Of Commerce, Goeasy, and Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

A shopper makes purchases from an online store.
Tech Stocks

Better Buy: Shopify Stock or Amazon?

Let's see which e-commerce stock is a better buy between Shopify and Amazon in 2023 and beyond.

Read more »

Growth from coins
Stocks for Beginners

Got $5,000? These 2 Growth Stocks Are Smart Buys

Are you looking for some smart buys for your portfolio? Here are two great options to buy now while you…

Read more »

stock research, analyze data
Bank Stocks

Better Buy: TD Stock or Bank of Nova Scotia?

TD Bank and Bank of Nova Scotia still look cheap. Is one a good buy today?

Read more »

Dial moving from 4G to 5G
Dividend Stocks

Down by 15%: Is BCE Stock a Good Investment in January 2023?

Few companies are truly “too big to fail,” but most market leaders are far more resilient against market headwinds or…

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

Looking for $200/Month in Alternative Income? Buy 530 Shares of This Stock

Do you want to earn $200 monthly alternative income for the next few years? Then accelerate your investments in this…

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

Deadline Coming: 3 TFSA Stocks to Buy Now Before Dividend Payouts

Invest in RNW stock and 2 other TFSA friendly names before this fast-approaching deadline to get the full 2023 dividend.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Passive Income: How to Earn Nearly $367 Per Month in Your TFSA Portfolio

Top TSX dividend stocks now trade at discounted prices for TFSA investors seeking passive income.

Read more »

Businessman looking at a red arrow crashing through the floor
Tech Stocks

3 Growth Stocks Down Over 50% That Are Screaming Buys in January 2023

Given their healthy growth prospects and discounted stock prices, these three growth stocks could deliver superior returns over the next…

Read more »