If you have an unexpected windfall of $10,000, it would be tempting to spend it on a vacation or something else you enjoy. However, did you know that if you invested it wisely, you could make another $10,000 down the road?
To double your money in five years, you would need to invest and achieve a total return of exactly 14.87% per year. That is a high target but not unachievable. Here are a couple of stocks that may be able to help you make another $10,000.
Brookfield
Brookfield (TSX:BN) is a global wealth manager of alternative assets in more than 30 countries for institutional and retail investors. The complex company consists of three core businesses:
A leading Asset Management business with approximately US$850 billion of assets under management, including about half that is fee-bearing capital .
An Insurance Solutions business that predominantly provides annuity-based reinsurance products.
An Operating Businesses in renewable power, infrastructure, private equity, and real estate that largely generate substantial cash flows.
BN data by YCharts
The stock is down about 3% over the last 12 months. Actually, as the above graph shows, the stock has been disappointing over the last three years for buy-and-hold investors. Primarily, the stock solid off because the market is worried about the impact of higher interest rates on the company — particularly on its commercial real estate portfolio.
At $46.48 per share at writing, the stock offers tremendous value for its double-digit growth prospects. In fact, it could potentially double investors’ money over the next three to five years.
The top TSX stock was one of Brian Madden’s top picks on BNN Bloomberg this week. (Madden is the chief investment officer at First Avenue Investment Counsel.) He noted there’s great demand in its offerings, as represented by fund flows into alternative assets outstripping funds into stocks and bonds, even with these interest rates. As well, he highlighted that Brookfield’s shareholder returns have been 15% compounded over the last 25 years, including dividends, which means $1 in 1998 is worth about $33 today.
Although Brookfield’s dividend yield is less than 1%, it has increased its dividend for longer than a decade. Its 10-year dividend-growth rate is solid at about 8.6%.
Brookfield Infrastructure Partners
Stocks are volatile. In today’s higher interest rate and relatively high inflationary environment, investors may feel more comfortable holding stocks that pay more income. In that case, you could consider putting your surprise fortune into one of Brookfield’s subsidiaries, Brookfield Infrastructure Partners (TSX:BIP.UN).
The limited partnership owns and operates a diverse portfolio of global infrastructure assets in utilities, midstream, transport, and data operations. Just like its parent, Brookfield Infrastructure has the potential to double investors’ money over the next five years as it trades at a substantial discount — it trades at about two-thirds of its intrinsic value! To make things better for investors, the top utility stock pays out a nice cash distribution, yielding almost 5.8% while having that potential.
Investors should only invest their long-term capital in stocks. If you’re just starting out, don’t put all your eggs in one basket, no matter how enticing an opportunity appears to be. Aim to build a diversified portfolio for the long term.
If you expect to use your windfall within a year or two, it would be much safer to put it in a high-interest savings account or Guaranteed Investment Certificate to ensure the safe return of your capital while earning decent interest income.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
