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If you are investing in stocks to create a large retirement corpus, consider buying the shares of the companies growing their businesses rapidly and having multiple growth catalysts to fuel future growth. This article will focus on three such stocks with multiple growth vectors and will likely beat the benchmark index in the long term.
goeasy (TSX:GSY) is the first stock on my list. I am bullish on this subprime lender because of its ability to deliver profitable growth. For context, goeasy’s revenues have a CAGR of about 13% since 2001. Moreover, its adjusted net income has grown at a CAGR of 31% during the same period.
While goeasy is well positioned to benefit from the increase in its loan originations and higher ticket size, it has multiple catalysts that would accelerate its growth rate and drive its stock price higher. Besides volumes growth, I expect goeasy’s revenue to get a boost from new product launches, channel and geographic expansion, large addressable market, and strategic acquisitions.
Meanwhile, higher sales and operating leverage will drive double-digit growth in its bottom line and support higher dividend payments. It’s worth noting that goeasy’s profitable growth has led the company to consistently enhance its shareholders’ value. It has been paying a regular dividend for 17 years. Its dividend has had a CAGR of 34% in the last seven years.
Overall, goeasy strong growth prospects and solid dividends make it a top stock to create a significant amount of wealth in the long term.
Shopify (TSX:SHOP)(NYSE:SHOP) stock has created a massive amount of wealth for its shareholders since listing on the exchange. Moreover, the recent correction in its price represents a solid buying opportunity at current levels.
Though difficult comparisons and reopening of retail locations will likely limit its growth rate in the near term, I am upbeat about Shopify’s long-term prospects. Shopify continues to gain market share, which is encouraging. Moreover, the ongoing shift towards omnichannel platforms, increased penetration of its payments solutions, and investments in fulfillment networks provide a multi-year growth opportunity for Shopify.
Overall, Shopify’s growing footprint, expansion of sales and marketing channels, growing merchant solutions, diversified subscription solutions revenues, and operating leverage augur well for growth.
Telus (TSX:T)(NYSE:TU) is the final stock on this list. This telecom company’s ability to consistently deliver profitable growth and solid shareholders’ returns support my bullish view.
Telus’s diversified revenue base, improved sales mix, and focus on optimization of costs augur well for growth. Moreover, the continued growth in its subscriber base and higher average revenue per user will likely drive its financials and, in turn, its share price. Also, Telus’s strategic capital-allocation strategy, expansion of PureFibre and 5G will likely accelerate its growth rate.
Thanks to its high-quality earnings base, Telus has consistently boosted its shareholders’ returns through increased dividend payments and share buybacks. Notably, Telus has paid $15 billion worth of dividends in the past 17 years and targets 7-10% growth in its future dividends annually.