Got $3,000? These Stocks Could Double Your Money by 2030

Here are three top Canadian stock ideas that could easily turn $3,000 into $6,000 or more by 2030.

| More on:
Profit dial turned up to maximum

Image source: Getty Images

Doubling your money by investing in stocks may not be as difficult as you think. In fact, if you invest $3,000 today, you could potentially turn it into $6,000 or more by 2030 by picking the right stocks. The year 2030 is only seven years away.

If you apply the Rule of 72, you will only need a 10.3% total annual return to double your money by 2030. Now, a 10% average annual return is certainly optimistic, but it isn’t impossible. In fact, if you are looking to double your $3,000, here are three Canadian stocks that could do that or even better.

A top Canadian retail stock

Alimentation Couche-Tard (TSX:ATD) stock is up 91.8% over the past five years. That equals a 13.9% compound annual growth rate (CAGR), or 14.9% if you include its dividend.

It operates one of the largest convenience and gas station portfolio in the world. You might be familiar with its Circle K, Couche-Tard, and Ingo stores in North America, Europe, and Asia.

While it is a bit of a boring business, Couche-Tard has done a wonderful job growing the business by making smart acquisitions and profitable internal investments. The convenience store space is very fragmented, so it still has plenty of acquisition opportunities to grow.

The company generates a lot of excess cash, so it has consistently increased its dividend and bought back stock. Since 2020, it has bought back nearly 9% of its stock. This could set the stock to generate even better returns going forward. Today, it trades at a reasonable valuation of only 16 times earnings.

A leading consulting firm

WSP Global (TSX:WSP) stock is up 178% over the past five years. That equals a 22.7% CAGR, or 22.9% if you include its minuscule 0.88% dividend.

WSP has become one of the largest consulting, engineering, design, and project management firms in the world. Like Couche-Tard, it has grown by acquiring and consolidating smaller consulting firms under its umbrella. It has completed nearly 200 acquisitions over its company history.

Over the past couple of years, WSP has made a couple of large +$1 billion deals in the environmental space. This is a fast-growing segment, and WSP is now a leader in the space. This should help fuel some attractive long-term growth opportunities.

WSP stock is not cheap at 27 times earnings. However, for a company with a great track record of execution, a strong balance sheet, and multiple avenues to grow, WSP might be worth holding for the long term.

A top consumer discretionary stock

Another stock that has thoroughly beaten the 10% return threshold is BRP (TSX:DOO). Over the past five years, its stock has risen 126%. That equals a 17.8% CAGR.

BRP sells some of the most innovative recreational vehicles in the world. Its brands, Ski-Doo, Sea-Doo, and Can-Am, are leaders in their categories. Not only is BRP gaining market share across its brands, but it is also creating new categories (like the hydrofoil or the Sea-Doo Switch) that are attracting very high demand.

Despite BRP’s success, the stock only trades for 12 times earnings. The market has been worried about the effects of a recession on its sales. However, so far, none of these worries have materialized.

BRP generates a lot of free cash flow, and it has been using that to aggressively buy back stock. Since 2020, it has bought back near 13% of its stock. A continuation of shareholder-friendly moves are expected to come in the years ahead.

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 Robin Brown has positions in Brp and WSP Global. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Brp and WSP Global. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

calculate and analyze stock
Stocks for Beginners

The Top 3 Most Shorted Stocks in Canada Today

These TSX stocks may be up now, but short-sellers are betting they're about to tumble in the next few weeks.

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 »

Young woman sat at laptop by a window
Stocks for Beginners

3 Stocks Beginners Can Buy in 2023 and Hold for Decades

Are you looking for a simple portfolio to get started as an investor? These three stocks are top performers and…

Read more »

railroad
Dividend Stocks

Slow and Steady: Buy this Railroad Stock Now to Win the Race

Investors looking for a solid and growing income should pick up shares in this railroad.

Read more »

A brown bear sitting on a rock
Stocks for Beginners

Where to Invest $10,000 in a Bearish Market

Here are some great options for low-risk and high-risk investors alike.

Read more »

retirees and finances
Dividend Stocks

RRSP Investors: Should You be Worried During a Recession?

RRSP savers might feel like gagging as they watch their investments fall, but stay strong! Especially with these TSX stocks.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Stocks for Beginners

How I’d Build a TFSA if I Had to Start Over

Are you looking to start a TFSA? Here’s how I would build one if I had to start over.

Read more »

Stocks for Beginners

3 Top Stocks to Buy Now in a Once-in-a-Decade Opportunity

Don't wait. These three top stocks are the perfect additions to your portfolio and aren't likely to remain at these…

Read more »