These 3 Stocks Could Grow (at Least 5X) in the Next Decade if They Repeat History

Three stocks could soar by least five times more if they repeat history with the return of a bull market.

| More on:
grow dividends

Image source: Getty Images

Investors can’t make the past performance of stocks the basis for their buying decisions today, because it doesn’t guarantee future results. If you go back 10 years, or to 2013, TFI International (TSX:TFII), Pollard Banknote (TSX:PBL), and Ballard Power Systems (TSX:BLDP) have delivered astronomical returns to shareholders.

Their share prices could grow five times more in the next decade if they repeat history. Otherwise, you’d be imagining a dream scenario. In reality, you’d invest in these stocks in 2023, because they outperform the broader market year to date.

Fast-growing network

TFI trades at $154.26 per share (+13.75% year to date) and pays a 1.23% dividend. Today’s stock price is 794.3% higher than it was 10 years ago ($17.25 per share). The $13.37 billion company is a well-established transportation and logistics company in North America. Its network of wholly owned operating subsidiaries is fast growing.

For the full-year 2022, total revenue and net income climbed 22% and 9.1% to $8.81 billion and $823.2 million versus the full-year 2021. According to its chairman, president, and chief executive officer (CEO), Alain Bédard, the unique positioning of TFI produces remarkable success during turbulent times.

TFI’s competitive advantages include business line diversity and exposure to attractive niche markets. Management’s several self-help initiatives also contribute to business growth. Bédard added that the relative stability, margin expansion, and free cash flow of TFI reflect the team’s tireless efforts.

The net cash flow from operations increased 14% year over year to $971.6 million. Also, in the fourth quarter (Q4) of 2022, the board approved and declared a 30% increase in the quarterly dividend.

Brisk business

Pollard Banknote also had stellar returns (+890.6%) in 10 years, given that the stock price was only $2.13 then. As of this writing, you can purchase the stock at $21.10 per share and partake in the 0.76% dividend. The $567.96 million company provides products and solutions to lottery and charitable gaming industries globally.

The business thrives, as evidenced by the record revenue last year. In 2022, the top line grew 5.1% year over year to $482.3 million, although net income declined slightly by 2% to $19.3 million. Management said that consumer demand in most lines of business remains strong. Also, Pollard expects to realize the positive impact of new selling prices in the latter part of 2023 and into 2024.

Growth stock

Ballard Power Systems was a perennial TSX30 winner from 2019 to 2021 but missed joining the list in 2022. At $7.21 per share, the growth stock is up 11.27% year to date. Also, the current stock price is 567.7% higher than it was in March 2013.  

The $2.15 billion manufactures proton exchange membrane fuel cells that enables the electrification of mobility. The fuel cells are for buses, commercial trucks, trains, marine vessels, and stationary power. Management is confident that Ballard will soon be on the path to profitability.

Ballard’s president and CEO Randy MacEwen said, “With an increasingly constructive policy landscape for hydrogen globally, we are excited by the growing end customer interest to decarbonize mobility and stationary power applications with fuel cells.”

Bull market gains

The market is very uncertain, although many investors still hope for better things ahead. If ever the bull market returns, the stocks in focus might deliver gains comparable to their 10-year returns.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Pollard Banknote. The Motley Fool has a disclosure policy.

More on Dividend Stocks

calculate and analyze stock
Dividend Stocks

4 Fabulous Dividend Stocks to Buy in July

Are you looking for long-term income? These four dividend stocks should not only provide you with value in July but…

Read more »

financial freedom sign
Dividend Stocks

5 Steps to Financial Freedom for Canadian Millennials

Follow these steps and nothing can stop Canadian millennials from achieving their early retirement dreams.

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

We’re Only Getting Older: A Top TSX Stock That Benefits From an Aging Population

For a bet on the aging population, consider this small-cap stock with growth potential.

Read more »

Growing plant shoots on coins
Dividend Stocks

Yield Today, Growth Tomorrow: 3 Stocks to Keep Building Your Wealth

For investors seeking yield today and growth tomorrow, these top Canadian dividend stocks are certainly worth considering right now.

Read more »

Payday ringed on a calendar
Dividend Stocks

This 10.72% Dividend Stock Pays Cash Every Month

This dividend stock remains a consistent, defensive dividend producer that will give up over 10% in income each and every…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA Investors: 2 Standout Domestic Stocks With 7% Yields

These top dividend-growth stocks look oversold.

Read more »

Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Despite their recent declines, the long-term growth outlook of these two top dividend stocks remains strong, which could help their…

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Growth Stocks vs. Value Stocks: Which Should You Choose?

There are growth stocks and value stocks, but there are also growing value stocks that fit into both sides of…

Read more »