3 Beginner Stocks to Kickstart Portfolio Growth
One of the most coveted traits of beginner stocks is predictability, which, from a growth stock perspective, usually means linear growth patterns. And even though past performance does not promise growth in the future, that’s as strong a predictor as any, and most investors (regardless of whether they are a novice or seasoned) feel comfortable with stocks that have proven their mettle time and time again.
And if you are looking for beginner stocks that can really kickstart portfolio appreciation and start growing your savings at a considerable pace, three stocks should be on your radar.
A heavy equipment company
Another “beloved” trait of beginner investors is a unique competitive advantage, and it’s a box Toromont Industries (TSX:TIH) definitely checks, along with a time-tested growth history. Toromont has an extensive equipment group, one of the two business segments, and outshines the other (CIMCO refrigeration) by a massive margin.
Under the equipment banner, Toromont stands out as one of the world’s largest Caterpillar equipment dealers and a significant player in brand-name rental space. The dealership business alone makes up over 70% of the revenue stream, which might not be great from a diversification perspective but is a strong endorsement of its competitive edge.
As for its growth, it has been quite linear for more than a decade, and the stock has returned almost 396% to its investors in the last decade through price appreciation alone.
A P&C insurance giant
If industry leadership is a trait you prefer in your beginner stocks, Intact Financial (TSX:IFC) is an intelligent pick. It’s the largest property and casualty (P&C) insurance company in the country (and gaining significant ground in the U.S.) and controls roughly 21% of the market. It also has a decent off-continent presence and a sizeable client base in U.K. and Ireland (through RSA).
It operates through at least 14 well-known brands, most of which operate in the country, but a fair number are active in Europe. This dominance comes with a compelling stock track record. It has been one of the most consistent growers of the last decade (apart from the pandemic) and returned roughly 179% to its investors. You can also lock in a 2.2% yield if you buy now.
A solid-waste management company
Waste Connections (TSX:WCN)(NYSE:WCN) offers more than predictable growth. It is one of the largest publicly traded waste management companies in the world (and the third-largest solid waste management company on the continent). It also offers an essential service to a massive client base in the U.S. and Canada.
And though it’s not the company’s focus yet, its presence and infrastructure might also allow it to become a significant recycling/major disposal partner for corporate clients like EV manufacturers (for their batteries). As for the stock, the growth has been relatively stable, and it has grown by over 90% in the last five years alone.
The three stocks are not just worth considering when learning how to invest in Canada. They are time tested, powerful growers, and are equally potent in the portfolios of more seasoned investors as well. All three are aristocrats, but the growth and stock appreciation tend to keep the yield down.
Before you consider Waste Connections, we think you’ll want to hear this.
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* Returns as of 4/14/22
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends INTACT FINANCIAL CORPORATION.
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