Canadians seeking out millionaire-making stocks have one key piece of information to consider. Where are the stocks that have done it before? What’s more, where are the companies that could do this all over again?
Today, we’re going to look at just that: two companies (one of which is a spinoff) that have already made Canadians $1 million from a $100,000 investment over time. What’s more, they look poised to do it all over again. So, let’s get into it.
goeasy
The first company that we want to look into is goeasy (TSX:GSY). This company has grown steadily over the not just years but decades. Coming on the scene in 1990, goeasy stock started out as a home appliance and furniture loaning business. But that has grown to be so much more.
Now, the company has multiple loan operations. What’s more, it’s been seeing record loan originations quarter after quarter. The reason I like this is we’re seeing momentum, not just growth year over year.
In this case, the second quarter saw loan originations at $667 million, with diluted earnings per share (EPS) of $3.26. This increased to $722 million in loan originations in the third quarter, with diluted EPS at $3.87. By the fourth quarter, loan originations did come back down slightly to $705 million, diluted EPS surged to $4.34. Overall, the company also saw a climb in revenue quarter after quarter, showing that it can still continue to grow its loan portfolio even in these trying times.
So, if you had purchased 6,250 shares of goeasy stock at $16 per share back in September 2015, today, you would have exactly $1 million at $160 per share! And that’s without including a dividend, currently at 2.91% as of writing.
Topicus
Now granted, Topicus (TSXV:TOI) is actually quite a new company. However, instead of talking about this company and its recent success, we’re going to look at its parent company, Constellation Software (TSX:CSU).
CSU stock has had so much success because, as with goeasy stock, it came on the market at the right time. Also coming on the scene in the 1990s, management identified niche, essential software that companies will need no matter what. Think of the software needed to run subway services, library catalogues, all of it. CSU stock identifies these valuable options and snatches them up.
Again, the company hasn’t only proven that it can do well year after year and quarter after quarter but decade after decade — even during high interest rates, inflation, and recessions! Yet, at $3,600 per share, it’s not exactly easy to buy. Nor does it look like there will be more growth at such high levels.
That being said, let’s consider its spinoff, Topicus stock. This company came on the market very recently in 2021. Since then, shares have risen steadily higher and higher, again with very few downturns, even in this economic environment. That comes from doing exactly what CSU stock did but in Europe. So, if you want to get in on the same millionaire-making option as CSU stock, simply consider Topicus stock instead!
