When it comes to Canadian stocks that the average investor ought to consider hanging onto for the long haul, shares of Shopify (TSX:SHOP) and Alimentation Couche-Tard (TSX:ATD) ought to come at or around the top of the list. Shares of both companies have been exceptional performers over the past five years.
Of course, Shopify stock suffered a massive crash of more than 80% during the brutal tech selloff that took place last year. Still, if you held five years ago, you’d still be up pretty big, as shares of Shopify are up 279% over the last five years at the time of writing.
Meanwhile, Couche-Tard stock surged 125% over the past five years without suffering such a catastrophic plunge. Indeed, there were notable dips along the way, especially during the 2020 stock market crash. That said, Couche-Tard shares got back on their feet very quickly and proceeded to march even higher on the back of solid quarterly earnings results.
Shopify and Couche-Tard stocks could keep surging higher from here
Today, the markets are feeling hopeful again. And SHOP and ATD stock have both been doing quite well so far this year. Though Shopify is a scarier, growthier ride suitable for brave and young investors, I think it’s still worth watching anytime it slips substantially.
As for Couche, I think it’s a stock that one should just stash in their Tax-Free Savings Account or Registered Retirement Savings Plan and just forget about for years! The company has terrific managers who know how to drive growth like few others in the convenience store business. The past performance shows that boring businesses can be very profitable and perhaps deliver better results than some of the hot, bid-up artificial intelligence (AI) stocks that everyone seems to want to talk about these days!
Let’s check out two names that you may wish to consider picking up going into the September season.
Shopify
Shopify is the Canadian e-commerce company that may be the most innovative play on the entire TSX Index. The stock has been anything but a smooth ride, though. Though the vicious plunge of last year is in the books, one must not expect volatility to subside. The stock is off 20% from its 2023 high hit back in mid-July. Indeed, the broader tech sector has taken a breather of late. Though Shopify stock has gotten pricier since the final quarter of 2022, I don’t think investors should hit the panic button.
The company still has a lot going for it. And you can bet it has skin in the AI race! As the company invests more deliberately, I’m not so sure you can keep Shopify stock down and out for too long. Personally, I’d inch my way into a full position, given the choppiness of today’s market waters.
In five years, I think the dust will settle, and Shopify will have a front-row seat to new corners of e-commerce. Whether digital stores of the near future are in the metaverse or someplace else, I’m a bull on SHOP stock!
Alimentation Couche-Tard
Couche-Tard may be the growth stock to own if you’re looking for a more comfortable sleep at night. The convenience store giant has a 0.91 beta (slightly less correlation to the TSX) and has been steadily growing earnings via same-store sales growth and smart acquisitions. With a strong balance sheet and a hunger for value-rich deals in the industry, I’d not count ATD stock out, even when it dips.
Today, the yield sits at 0.85%. Though unremarkable to most, the dividend is well positioned to grow over the next five years and beyond. Who knows? Couche-Tard may be Canada’s next dividend-growth hero!
