Many rich people did not have a large inheritance but made their fortune in the stock market. These self-made millionaires started with little and built their wealth over time by saving and investing. Stocks are more volatile than other investments, although they can deliver the highest possible returns.
If you have a long-term financial goal, there are four standout, must-buy Canadian stocks today. Accumulate shares if finances allow, hold them in a Tax-Free Savings Account (TFSA), and be your way to becoming a millionaire.
Big bank
Bank of Nova Scotia (TSX: BNS), Canada’s fourth-largest bank, is a proven millionaire-maker owing to its 192-year dividend track record. This $90.76 billion financial institution also pays the highest dividend among the Big Six banks. At $72.86 per share (+18.62% year to date), the dividend yield is 5.78%.
Management’s new strategy announced in December 2023 is to allocate more capital in North America. BNS will allocate more for the domestic market and recycle some in Latin America and U.S. businesses. The top priority is to generate new business in underpenetrated markets like Quebec and British Columbia.
Energy major
TC Energy (TSX: TRP) will soon mark a significant milestone and concentrate on natural gas and power businesses. The $48.58 billion energy infrastructure company expects to complete the spinoff of its liquids pipeline business next month. It will give rise to SouthBow, a new standalone oil infrastructure company.
In post-spinoff, TC Energy will maintain the regulated, low-risk and utility-like natural gas and power portfolio. Management will offer competitive services to meet the ever-growing energy demand. The resulting sustainable cash flow will enable TC Energy to capitalize on large-scale opportunities.
At $63.62 per share, the large-cap stock outperforms the TSX year to date at +27.42% versus +14.01%. Current investors partake in the 6% dividend. Furthermore, TC Energy has raised its dividends annually since 2000.
Dividend grower
Emera (TSX: EMA) is a Dividend Aristocrat like TC Energy. This $15.14 billion energy and services company provides essential services, including transmission and distribution of electric power and sells natural gas. Besides Canada and the U.S., it operates in Barbados, Dominica, and the Bahamas.
On September 18, 2024, Emera announced a board-approved 1% dividend hike, the 18th consecutive year of dividend growth. If you invest today, the share price is $52.62 (+9.4% year to date), while the dividend yield is 5.47%. The top-tier utility firm has an annual dividend-growth guidance of 4-5% through 2026.
Prolific operations
Headwater Exploration (TSX: HWX) is a $1.56 billion oil and gas exploration and development company. Thus far in 2024, the energy stock is up 7.32% year to date. Also, at less than $10 per share ($6.53), the dividend offer is a lucrative 6.11%. The financial results in the first half of 2024 indicate a thriving business.
In the six months ending June 30, 2024, total sales and net income climbed 37% and 50% year over year to $284.4 million and $91.49 million. Headwater boasts high-quality oil production, reserves, and lands in Alberta, as well as low-decline natural gas production and reserves near New Brunswick.
Rock-solid, long-term returns
BNS, TC Energy, Emera, and Headwater Exploration are millionaire-makers. Each company has powerful competitive advantages that can provide rock-solid, long-term returns.
