For many investors, retiring as a millionaire is the ultimate goal. In fact, many Canadians believe that $1.7 million is now needed for a comfortable retirement. Whether that’s true for you is left to be determined since that figure changes quite drastically depending on the lifestyle you hope to live in retirement. In this article, I aim to help set you on the right path. I’ll discuss three stocks that could help you retire as a millionaire.
I would choose this stock over any other
If I could only choose one stock that could help you retire as a millionaire, it would be Constellation Software (TSX:CSU). This company acquires vertical market software (VMS) businesses. Upon acquisition, Constellation Software provides the resources necessary to turn those businesses into exceptional business units. For most of its history, Constellation Software has focused on small- and medium-sized VMS businesses.
In 2021, the company announced that it would begin targeting large VMS businesses for acquisition. We’ve seen this come to fruition in recent years, as Constellation Software has undergone spinoffs in order to complete those transactions. It seems as though whatever Constellation Software touches turns to gold as the company’s stock continues to soar even after having gained so much since its initial public offering. Over the past year alone, it has gained about 60%.
A great growth stock for your portfolio
If you hope to retire as a millionaire, then focusing on growth stocks is imperative. With that said, Shopify (TSX:SHOP) is a great company to consider. It’s a global leader in the e-commerce space, providing a platform and many of the tools necessary to operate online stores. Shopify’s product offering is so widely ranging that the company is able to cater to everyone from first-time entrepreneurs to large-cap enterprises. That’s a feat that I’m sure many investors seem to forget at times.
It’s because of that global impact that Shopify’s stock has been able to grow so much in such a short time. Since listing on the TSX in May 2015, the stock has gained nearly 3,000%. Of course, it hasn’t been an easy ride up the entire way. In fact, the stock still sits about 50% lower than its all-time high. However, I strongly believe the ecommerce industry could continue to grow for years, if not decades, to come. And with Shopify holding such a strong leadership position, its stock could grow alongside the industry.
Another stock worth buying today
Finally, investors should consider buying shares of Alimentation Couche-Tard (TSX:ATD) if they hope to retire as a millionaire. This may be one of the most underappreciated stocks in Canada simply because its business isn’t exciting. Alimentation Couche-Tard operates convenience stores. All considered, it has more than 14,000 locations across 25 countries and territories.
Alimentation Couche-Tard stock has greatly outperformed the TSX over the past year. It has gained more than 32% over that period. To put that into perspective, consider that the TSX has gained only 5% over the same period. Over the past five years, Alimentation Couche-Tard has gained more than 120%. That means you would’ve more than doubled your money in just five years. Consider the kinds of gains you could be seeing over a couple of decades of investment.
