The Canadian stock market has been on a solid run for most of 2021. Most Canadian stocks trading on the TSX have continued the strong momentum since recovering from the market downturn in February and March 2020. The S&P/TSX Composite Index is at the 20,705.27 mark at writing — up by 18.13% on a year-to-date basis.
With the Canadian benchmark index at or near new all-time highs, growth-seeking investors might find it challenging to identify high-quality equity securities that can continue delivering stellar shareholder returns through capital gains. It is still possible to find high-quality growth stocks that still have upside potential.
Today, I will discuss two Canadian growth stocks that you should have on your radar if you are interested in investing in growth stocks.
goeasy
goeasy (TSX:GSY) is an excellent stock to have on your radar if you’re looking for a growth stock that also provides you with reliable income through shareholder dividends. The subprime lending firm has consistently delivered terrific top- and bottom-line growth while providing its shareholders with reliable payouts.
At writing, the stock is trading for $212.04 per share, and it pays a 1.25% dividend yield to its shareholders. GSY stock is up by 232% year over year, and it could have plenty of room to grow. As the economic expansion continues, the company’s launch of new products, channel expansion, and strategic acquisitions can combine with higher credit offtake to boost its revenues.
It might be the right time to purchase the stock at this price so that you can lock in a decent dividend yield and capture profits through significant capital gains.
Lightspeed
Lightspeed (TSX:LSPD)(NYSE:LSPD) has only headed upwards since its listing on the TSX just a few years ago. The company faced challenges in the first few weeks of pandemic-induced lockdowns, as most of its clients were forced to shut down to curb the spread of COVID-19. However, the company rapidly pivoted and made new offerings that helped its customers continue doing business amid the changing operating landscape.
The omnichannel platform provider is trading for $157.01 per share at writing, and it is up by almost 275% year over year. The company’s expansion from being a POS provider into different industry verticals through strategic acquisitions has fueled its growth. As Lightspeed continues to expand into new markets, the opportunities for further growth are becoming better and better for the company.
Despite being at all-time highs right now, I believe that the stock has much more to deliver in terms of capital gains, and it could be an attractive buy at today’s prices.
Foolish takeaway
Suppose you are looking for virtually flawless stocks that can continue to deliver stellar shareholder returns through capital gains. In that case, it is possible to find high-quality companies that can help you achieve your financial goals.
Lightspeed stock and goeasy stock have gained a reputation for delivering exceptional returns. I believe that the favourable industry trends can continue to provide these companies the tailwinds necessary to provide you with substantial upside potential.
