Finding the right stocks to own today can make the difference between retiring early with a healthy income stream or needing to work for a few extra years. Fortunately, there are some monster stocks on the market that investors can hold now for massive growth over the next decade.
Here’s a look at some of those monster stocks that promise not only growth but, in some cases, an equally monster income stream.
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Option #1: Alimentation Couche-Tard
Most investors are aware of Alimentation Couche-Tard (TSX:ATD). For those unfamiliar with the stock, Couche-Tard is one of the largest convenience store and gas station operators on the planet.
Specifically, Couche-Tard operates in over a dozen countries, with over 2,100 locations in North America alone.
A large reason for that growth in the past decade can be traced back to Couche-Tard’s insatiable appetite for expansion. In addition to that stellar growth potential, Couche-Tard is known for its knack for realizing impressive synergies from those acquisitions.
Those ever-larger acquisitions have led to Couche-Tard’s latest target, which also happens to be the largest convenience chain: 7-Eleven. So far, the Japanese-based owner of the chain has turned down overtures from Couche-Tard.
In other words, prospective investors looking for some monster stocks to hold will not be disappointed with Couche-Tard.
Option #2: Canadian National Railway
Another one of the monster stocks to hold right now is Canadian National Railway (TSX:CNR). Railways provide an increasingly necessary service, serving factories, warehouses and ports across the entire continent.
In the case of Canadian National, the railway boasts one of the largest rail networks on the continent, connecting three coastlines. Canadian National hauls approximately $250 billion worth of goods each year across that network.
This makes the railway one of the most defensive picks on the market. Further to that appeal, Canadian National’s freight is highly diversified. Specifically, that freight can be anything from automotive parts, chemicals and wheat to crude oil, precious metals and raw materials.
Canadian National is also an impressive income investment, offering a respectable dividend. As of the time of writing, Canadian National’s yield works out to an impressive 2.46%.
Between that dividend and the insane defensive appeal of the stock, Canadian National is a monster stock to hold in any portfolio.
Option #3: TD Bank
One final option for investors seeking out those monster stocks to hold now is Toronto-Dominion Bank (TSX:TD). TD Bank is the second largest of Canada’s big bank stocks and boasts an impressive branch network across Canada and the U.S.
That U.S. branch network is both TD’s growth focus and a source of opportunity for investors right now.
TD’s growth in the U.S. is impressive. In the years following the Great Recession, TD acquired several regional players and rebranded them into its current footprint. In total, the bank boasts a network of locations stretching from Maine to Florida along the east coast.
Last year TD’s U.S. growth plans hit a roadblock. U.S. regulators imposed fees and an asset cap on the bank stemming from TD not doing enough to stem money laundering.
The imposed US$3 billion fee and the asset cap have put TD’s otherwise impressive growth plans in the U.S. on hold. More importantly, it caused the bank to push ahead with other changes.
Those changes include selling off its stake in Schwab, which was announced just this week. TD plans to use some of the expected $20 billion on growth opportunities in Canada.
TD is definitely one of the monster stocks to hold now. Investors waiting for that asset cap to be lifted can take solace in TD’s juicy quarterly dividend. As of the time of writing, the dividend pays out an impressive 4.96%.
These really are monster stocks to hold
All of the investments mentioned above offer some defensive appeal in addition to insane long-term growth.
In my opinion, one or all of these stocks should be core holdings in any well-diversified portfolio.
