3 top-notch stocks on my radar
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During times of market uncertainty, growth stocks tend to be hit hard. This is often because growth stocks carry a lot more risk than mature companies. For this reason, holding blue-chip stocks in a higher proportion during times of market uncertainty can provide your portfolio with additional stability. That’s not to say that there aren’t some blue chip stocks that can offer the potential to beat the market. In this article, I’ll discuss three top stocks on my radar!
A stock that made millionaires on the stock market
If you had the chance to invest $ 10,000 in Constellation Software (TSX: CSU) in or before October 2007, that position would be worth over $ 1 million today. Since its IPO, the Constellation Software share has generated a return of over 11,600%! This represents a compound annual growth rate of approximately 36%. Impressively, Constellation Software’s stock has shown no signs of slowing down. Over the past year, the stock has gained around 32%.
One of the reasons for the continued performance of the company may be due to the continued dedication of the Constellation leadership team. In 2017, Constellation president and founder Mark Leonard announced he would stop writing annual letters to shareholders due to a growing number of competing copycats.
In 2021, he broke his silence to announce that the company would finally start targeting large software companies in the vertical market. This could be the catalyst that will push Constellation Software stock to continue to outperform the market over the next decade.
A proven winner
There are few stocks that manage to produce similar returns to Constellation Software. However, Brookfield Asset Management (TSX: BAM.A) (NYSE: BAM) was certainly very impressive in itself. Since its IPO in August 1995, Brookfield has managed to earn over 4,500%. This represents a CAGR of 15.3%. While this return is roughly half of what Constellation Software delivered in a shorter time frame, it is still roughly three times better than the average return in the wider market.
With more than $ 625 billion in assets under management, Brookfield is one of the largest alternative asset management companies in the world. The company is exposed to the real estate, infrastructure and utilities sectors. In July, Brookfield announced that it would partner with You’re here to develop a large-scale sustainable neighborhood in Austin, Texas. If successful, it could spark major interest in an already popular blue chip company.
This is a high dividend share
Stepping away from growth, here’s some top-notch stock for dividend investors. Canadian National Railway (TSX: CNR) (NYSE: CNI) claims a 25-year dividend growth streak. This gives the company the 10th longest streak of active dividend growth in Canada. However, Canadian National’s dividend growth rate is even more impressive than its growth streak. Over the past five years, its dividend has grown at a CAGR of over 10%. This keeps it well ahead of the average inflation rate, providing investors with a reliable source of passive income.
Currently, there is no viable alternative to the rail industry when it comes to transporting goods over long distances. This means that rail companies will continue to be in high demand over the next few years. With its extensive network of tracks across North America, expect Canadian National to continue to be one of the top dividend-paying stocks over the next decade.