There’s a reason why investing in the stock market is so important for the personal finances of all Canadians. In addition to helping you save for retirement, and outpace inflation, investing in markets allows anyone who can save capital the ability to invest in the growth of the economy. Better still, they can do so through a wide range of stocks with a tonne of potential to ultimately build generational wealth.
Generational wealth is the ability to pass down capital through generations, offering families the opportunity to provide better futures for their successors.
So by investing in the stock market early on and taking advantage of compound interest, you can not only achieve financial freedom yourself, you can also continue to grow your money and build significant wealth for years to come.
That’s why it’s essential to focus on finding the highest-quality companies in Canada. These are businesses that dominate their industries and have significant competitive advantages, and therefore years of growth potential.
So with that in mind, if you’ve got cash to invest and are looking to find top-notch businesses that you can have confidence buying now and holding for the long haul, here are two top Canadian growth stocks that can help you build generational wealth.
An impressive green energy stock to buy and hold for decades
When you consider how much growth potential renewable energy has, especially as we continue to see significant natural disasters as a result of climate change, there’s no question that a top green energy company can be one of the best growth stocks to help you build generational wealth.
And there’s no question that of all the green energy stocks you can buy, Brookfield Renewable Partners (TSX:BEP.UN) is one of the very best.
Brookfield has a massive portfolio of renewable energy assets located in countries all over the world. Its massive reach gives it plenty of diversification, helping to mitigate risk.
This is especially important for green energy stocks, which rely on natural elements like wind and sun. These resources can be unpredictable, leading to variable energy production.
So by diversifying its assets, Brookfield can help mitigate these fluctuations, ensuring more consistent overall performance.
In addition, Brookfield’s global reach also allows it to find assets trading undervalued all over the world, one of the main reasons why it can consistently expand its portfolio.
This has led to consistent growth for Brookfield. For example, in just the last three years, revenue has grown by 58%.
Plus, in addition to the growth potential Brookfield offers, it also returns a tonne of capital to investors. Right now, its distribution has a yield of roughly 5.3%. Further, Brookfield aims to increase that distribution by 5% to 9% annually.
So if you’re looking for top Canadian growth stocks that can help you build generational wealth, Brookfield is certainly a top choice.
A top long-term growth stock that can help build generational wealth
In addition to Brookfield, Canadian Apartment Properties REIT (TSX:CAR.UN) is another high-quality stock that you can buy now and hold for years.
What’s most compelling about CAPREIT is that it’s a highly defensive stock, considering it’s a residential REIT and the largest in Canada. That means its revenues are highly robust and predictable since housing is essential, and CAPREIT’s properties are diversified all across the country.
Besides its defensive nature, CAPREIT is also consistently expanding its portfolio and growing its business.
In just the last three years, CAPREIT’s revenue has increased by 29%. Furthermore, over that stretch, its adjusted funds from operations have increased by over 20%. That’s impressive growth for such a short period of time, especially when you consider the significant inflation we’ve seen over the last few years.
And just like Brookfield, CAPREIT is also consistently increasing its distribution, and is also on the Canadian dividend aristocrats list. Plus, right now, it offers a yield of roughly 3%.
So if you’re looking for high-quality Canadian growth stocks to buy now, CAPREIT is certainly one of the best long-term investments you can make.