2 Stocks That Could Turn $100,000 Into $1 Million

Two stocks and an income-and-growth strategy could turn $100,000 into a seven-figure fortune over time.

| More on:
Key Points
  • A 50/50 split of Enbridge (ENB) and Hammond Power Solutions (HPS.A) is pitched as a simple two‑stock strategy to grow $100,000 toward $1 million by pairing steady dividend compounding with outsized capital gains.
  • Enbridge is the defensive income compounder — large regulated cash flows, multi‑decade dividend growth (≈31 years), a ~5% yield, and ~$40–50B of project/backlog visibility supporting stable payouts.
  • Hammond Power is the growth engine — back‑to‑back TSX30 winner with massive recent returns driven by demand for dry‑type transformers, data‑centre/AI and grid modernization, though past performance isn’t a guarantee.

Average onlookers will see it as absolutely ridiculous to turn $100,000 into $1 million through stock investing. However, what they perceive as pure fantasy happens in reality. The truth is, a million-dollar portfolio is achievable with only two stocks and a well-defined investment strategy.   

An income-and-growth investing strategy should help accelerate the accumulation of capital to a seven-figure fortune. The approach combines rock-solid dividend income for reinvestment with exponential capital growth.

Enbridge (TSX: ENB) and Hammond Power Solutions (TSX: HPS.A) are two powerful levers that could work in tandem. In a 50/50 allocation ($50,000 each), the former provides a defensive cash cushion, while the latter increases capital through price appreciation during market upswings.   

dividends grow over time

Source: Getty Images

Income compounder

Enbridge is not only a defensive anchor but also the ultimate income compounder. At $76.13 per share (+19% year to date), the dividend yield is 5.1%. A $50,000 position will grow to $177,347.40 in 25 years, including dividend reinvesting (quarterly). The final balance is based on a flat price and constant-yield assumption.

ENB, a large-cap stock, has recorded 31 consecutive years of dividend increases. The $166.2 billion energy infrastructure company operates a vast crude oil and liquids transportation system and an expansive natural gas utility network across North America.

About 95% of the company’s cash flows come from long-term contracts or are under regulated rate structures. The setup insulates the business from volatile commodity prices. Four core franchises form the diversified business mix.

All segments, from Gas Transmission and Liquids Pipelines to Gas Distribution & Storage and Renewable Power, have visible growth potential. The total opportunities through 2030 are around $50 billion.

In the first quarter (Q1) of 2026, Adjusted earnings declined 5% year over year to $2.1 billion, while distributable cash flow (DCF) increased 2% to $3.8 billion from a year ago. According to Greg Ebel, president and CEO of Enbridge, the global energy sector experienced the most volatile and complex conditions in the past several months. He said Enbridge’s secured capital backlog stands at $40 billion, and will actively advance approximately $50 billion of unsanctioned opportunities.

Millionaire maker

Given its performance, Hammond Power Solutions is a millionaire maker. As a backdrop, the industrial stock is a back-to-back TSX30 winner, the annual ranking of Canada’s 30 top-performing stocks. It ranked first in 2024 and placed third in 2025.

HPS.A trades at $336.69, up 111.43% year to date with a total five-year return of +3,469.46%. Assuming the historic performance repeats, the initial $50,000 investment will be over $1.7 million in only five years. Past performance is never a guarantee of future returns, but the multi-decade tailwinds for the business are strong.   

The $4 billion company manufactures dry-type transformers and power-quality products essential to electrical equipment and systems. In addition to surging demand for dry-type transformers, the growth drivers include the buildout of data centres & AI and grid modernization. Hammond Power achieved record quarterly sales of $265 million in Q1 2026, supported by a 4.1% backlog growth from year-end 2025.

Financial engine

Dividing $100,000 evenly between Enbridge and Hammond Power is a good start to $1 million. The timeline might take longer, but you have a balanced financial engine throughout the wealth-building journey.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

More on Dividend Stocks

ETF stands for Exchange Traded Fund
Dividend Stocks

Before You Buy a Covered-Call ETF, Check These 3 Numbers

A covered-call ETF’s big “yield” can hide return-of-capital and capped upside, so check the numbers that show what you’re really…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

Which Canadian Dividend ETFs Pay the Most Right Now?

Hamilton Utilities Yield Maximizer ETF (TSX:UMAX) could be the ultimate passive-income play to outpace inflation and a lower-yield world.

Read more »

dividend stocks are a good way to earn passive income
Dividend Stocks

This Dividend Stock Is One I’ll Never Sell — Here’s Why

Fortis (TSX:FTS) stock stands out as a dividend-paying, sleep-easy kind of name to buy and never sell.

Read more »

rising arrow with flames
Dividend Stocks

Income Investors: 3 Dividend Stocks That Keep Raising Their Payouts

These stocks have delivered annual dividend growth for decades.

Read more »

woman holding steering wheel is nervous about the future
Dividend Stocks

The Market Won’t Wait for You to Feel Ready: Here’s Where I’d Put $1,000 Today

Put $1,000 to work now instead of waiting for perfect timing, using Nutrien as a starter stock you can add…

Read more »

Person holds banknotes of Canadian dollars
Dividend Stocks

4 Canadian Stocks I’d Load Into My TFSA Without Hesitation

These Canadian stocks offer reliable income and have the potential to deliver solid capital gains, making them to bets to…

Read more »

earn passive income by investing in dividend paying stocks
Dividend Stocks

The Dividend Stocks That Pay You While You Sleep

Are you looking for stocks that you can depend on for predictable passive income. These three dividend stocks are safe…

Read more »

coins jump into piggy bank
Dividend Stocks

This TSX Stock Yields More Than the Average Savings Account Today

Income-focused investors can start researching Enbridge stock on this dip for a potential buy for higher income for long-term capital.

Read more »