Finding that perfect mix of growth and income-producing stocks can make all the difference in your portfolio. Fortunately, there’s no shortage of great growth stocks on the market right now.
Here’s a look at some great growth stocks that every Canadian investor should own for the long haul.
First, let’s talk about convenience (stores)
Alimentation Couche-Tard (TSX:ATD) is one of the largest convenience store and gas station operators on the planet. The company owns over 14,000 locations spread out across over two-dozen countries.
While it doesn’t seem that way, Couche-Tard and its growing network of gas stations and convenience stores is an incredibly defensive business. Apart from the necessity of purchasing fuel, the company’s efforts to build out its private-label brand and offer compelling value-based products are impressive.
That’s not even mentioning Couche-Tard’s somewhat insatiable appetite for growth. The company has notched off a series of impressive acquisitions over the past decade, allowing it to grow into the behemoth it is today.
Collectively, it’s that defensive appeal coupled with stellar growth potential and strong results that make Couche-Tard one of the growth stocks every Canadian should own. That can also be attributed to the impressive 23% gain the stock has seen year to date.
If that’s not enough, Couche-Tard even manages to dish out a dividend with a yield of 0.85%. That’s not enough to retire on, but it can provide additional growth from reinvestments over time.
Invest in one of the largest retailers in Canada
Most Canadians are aware of Dollarama (TSX:DOL) as a massive Dollar store retail stock. In fact, Dollarama’s network is very impressive, with over 1,500 locations in Canada.
Few investors may realize it, but Dollarama also enjoys a growing international presence outside of Canada. The company has a significant interest in Dollar City, a value retailer located throughout Latin America.
Specifically, Dollarama’s international presence includes over 500 stores in El Salvador, Guatemala, Peru, and Colombia. Last month, Dollarama also announced it would be expanding Dollar City to include Mexico.
Dollar stores like Dollarama are incredibly defensive investments. When consumer budgets become stretched, they turn to more value-oriented options like Dollarama. Part of that appeal also comes from Dollarama’s fixed-price system and bundling of lower-priced items.
Given the rampant inflation we’ve seen over the past years, it’s of no coincidence that Dollarama’s stock price has taken off. As of the time of writing, Dollarama is up a whopping 37% year to date.
And despite those impressive gains, Dollarama continues to be a strong option for investors looking for growth stocks to buy. In fact, in the most recent quarterly update, the company reported an impressive 8.6% increase in sales over the prior period.
Dollarama also offers investors a quarterly dividend, but like Couche-Tard, Dollarama’s dividend shouldn’t be seen as a source of income. As of the time of writing, Dollarama’s dividend pays out a paltry yield of 0.28%, which is more of a rounding error.
Sill, Dollarama continues to provide investors with generous annual upticks to that dividend which just adds to the overall appeal.
Growth stocks are superb options
Growth stocks like Dollarama and Couche-Tard can provide years, if not decades, of superior growth potential. Interestingly, both also boast considerable defensive appeal.
In my opinion, one or both of these growth stocks should be core holdings in any well-diversified portfolio.
Buy them today, hold them for decades, and watch them grow.
