Wealth building and retirement planning are two of the most common long-term investment goals. But if you pick the right growth stocks, they won’t just help you build wealth over time for your retirement years but can also push your portfolio up in the short term. If you want to boost your portfolio by next year, three stocks should be on your radar.
An insurance company
Canada is home to some of the largest life insurance companies in the world, but if you are looking for adequate growth, it’s the Canadian Property and Casualty (P&C) insurance giant Intact Financial (TSX: IFC) that you should consider buying.
The company currently has 10 brands under its banner, operates in several countries and is among the largest insurance companies (in its category) in Canada, the U.K., and Ireland.
It has also been one of Canada’s most rewarding insurance stocks for some time now. It doubled its investors’ money in the last five years through price appreciation alone, and if you throw in the dividends, the overall returns have become 124%. The numbers are even more impressive if we look at the last decade’s returns.
An alternative financial company
Another financial sector stock that may help you increase your wealth by next year is goeasy (TSX: GSY). It’s an alternative financial company that offers small personal loans and other financial products to people who do not have enough credit scores to qualify for a loan from the bank.
That’s a massive, underserved market in Canada, and goeasy has experienced robust growth over the years by catering to this market.
goeasy has an impressive footprint, with over 400 locations nationwide. It’s also one of the most generous Dividend Aristocrats on the market right now if you consider its dividend growth. However, its capital-appreciation potential is the most impressive factor to consider right now.
In the last 12 months, the stock rose by about 61%, and if it manages to repeat this performance in the coming year, it can give your portfolio a solid boost.
A property management company
FirstService (TSX: FSV) is North America’s largest manager of residential communities, with an impressive portfolio of over 9,000 communities, mainly in the United States. And that’s just one-half of its business. The other complementary half is essential property services like construction, painting, and roofing.
It has been a solid growth stock since the beginning and has grown over 500% since its inception. It’s also a dividend payer, and even though the payout ratio and dividend growth are both impressive, the yield is not. At 0.67%, the yield may not be reason enough to consider this stock, but its capital-appreciation potential is.
Foolish takeaway
The three growth stocks can help you boost your wealth to a certain extent by next year, making them short-term solid picks. But they are also excellent long-term picks, and you can buy and hold them for years, even decades, to slowly build your wealth and your retirement funds.
Even though their yields are not comparable to their growth potential, you can still hold them in your Tax-Free Savings Account (TFSA) if your goal is to start a passive income with these stocks.
