The High-Growth Stock Every Portfolio Needs

A significant portion of your capital diverted to the right growth stock(s) can help you expedite the growth of your nest egg.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Growth is more difficult to predict than dividends, which is why many conservative investors prefer the latter. Dividends offer better predictability of returns, and any capital appreciation over the established dividend income can be considered a bonus. It’s a valid investment strategy that has worked for numerous Canadian investors over the decades.

But it’s a relatively long-term strategy, and even if you hold the stocks that offer a good mix of growth and dividends, this portfolio can only take you so far. You need the right growth stock to expedite the pace of your portfolio’s growth. Even though there are hundreds of options that might be the right fit for many different investor profiles, there is one that may deserve a place in every portfolio.

The company

Montreal-based WSP Global (TSX:WSP) has been around for over a century, in the form of at least one of the companies that merged to form the WSP Global we know today. It’s one of the most promising large-cap stocks in Canada, especially when it comes to capital appreciation potential.

The company has an interesting history and roots in at least three countries – Canada, the UK, and the US. The individual businesses that merged to form WSP Global have long and proud histories, as well as some great projects to their names.

It’s basically an engineering solutions company with a comprehensive portfolio of services, including transportation, construction, energy, industry, and water management. The professional engineering consultancy has worked on major projects all across the world. But the main edge of the company has to be its drive to stay ahead of the curve. WSP has an immense network of expert professionals at its disposal and an impressive global presence.

The stock

WSP is a powerful growth stock. It has risen over 400% in the last nine years, and even though the growth hasn’t been perfectly uniform, it was quite consistent, at least until the 2020 crash. However, the stock handled the crash better than most other stocks on the TSX and has almost recovered from the post-pandemic correction phase.

Created with Highcharts 11.4.3WSP Global PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

If we average out its growth over the nine-year span, that comes out to about 44.4% a year. But even if the stock falls short of this mark and grows roughly 20% a year almost consistently, you can double your capital in just five years. You also get modest dividends on top of the growth.

If the company can maintain its high growth pace, you can expect to double your capital in just three years. And if you can hold the stock in your portfolio for decades, the long-term returns can be substantial for your portfolio.

Apart from a strong business model, diversified revenue sources, and an impressive footprint, another strength worth considering is its low debt. Combined with its steady revenues, this makes it a financially healthy stock option that you can hold long-term in your portfolio.

Foolish takeaway

As one of the top stocks in Canada offering reliable and consistent growth along with sustainable dividends, WSP Global is one of the best growth stocks you can add to your portfolio. The business model and healthy financials also make it an easily palatable choice for almost all types of investors.

Should you invest $1,000 in Sierra Metals Inc. right now?

Before you buy stock in Sierra Metals Inc., consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Sierra Metals Inc. wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends WSP Global. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

ETF chart stocks
Dividend Stocks

Investing $7,000 in Your TFSA? Consider These 2 Canadian ETFs for Retirement

Turn $7,000 into tax-free wealth! 2 top ETFs for 4%+ dividends and retirement growth to max your TFSA this May!

Read more »

Muscles Drawn On Black board
Dividend Stocks

The Smartest Canadian Stock to Buy With $5,000 Right Now

This smartest Canadian stock can convert your $5,000 investment to about $30,595 in 10 years, more than six times your…

Read more »

happy woman throws cash
Dividend Stocks

How I’d Turn $14,000 in My TFSA into a Money-Making Machine

Investing over time in a diversified Canadian dividend ETF like the VDY is one way to make a money-making machine…

Read more »

stocks climbing green bull market
Dividend Stocks

The Smartest Canadian Stock to Buy With $3,000 Right Now

Alimentation Couche-Tard Inc (TSX:ATD) is a good TSX stock.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How I’d Invest $50,000 of TFSA Cash as Canada-US Trade Uncertainty Expands

We're all uncertain about how this trade war will shake out, so here are some top stocks to keep your…

Read more »

data analyze research
Dividend Stocks

An Ideal 8.3% Dividend Stock Paying Cash Every Month as Trade Tensions Heighten

Trade tensions continue to trouble investors, but this dividend stock could certainly help smooth things over.

Read more »

exchange traded funds
Dividend Stocks

I’d Invest $15,000 in These High-Yielding Dividend ETFs for Passive Income

iShares S&P/TSX Composite High Dividend Index ETF (TSX:XEI) has a very high yield.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How I’d Structure My TFSA With $14,000 for Consistent Monthly Income

If you want some consistent dividend passive income in your TFSA, these are the top choices I'd go with.

Read more »