2 Stocks That Can Help You to Get Richer in the Next 3 to 5 Years

2 Stocks That Can Help You to Get Richer in the Next 3 to 5 Years

Some companies have a knack for enriching their investors. They operate highly profitable businesses, giving them enough cash to fund their growth while returning money to investors.

Brookfield Renewable Energy (NYSE:BEPC)(NYSE:BEP) And Prologue (NYSE:PLD) are proven wealth creators. They are in a great position to continue to enrich their investors in the future. Which does These are great stocks to buy for those looking to grow their wealth over the next three to five years.

A powerful creator of wealth

Brookfield Renewable generated an average annual return of 15.8% total return over the last 20 years. This far exceeded the S&P500The average annual total return of 10.3%. In other words, the renewable energy producer turned a $10,000 investment made 20 years ago into more than $187,000. That’s $100,000 more than a similar investment in a S&P500 index fund.

Brookfield’s ability to grow its earnings and dividends at healthy rates has fueled these strong returns. The company increased its funds from operations (FFO) at a compound annual rate of 12% since 2016. At the same time, it has increased its dividend at a compound annual rate of 6% since 2001.

The company is in an excellent position to continue to grow shareholder value over the coming years. Brookfield Renewable expects a trio of organic growth drivers (inflation-indexed rate increases, margin improvement activities and development projects) to drive 7% to 12% annual growth in FFO per share until 2028. It recently improved its Already strong in the long term organic growth rate by signing a long-term power deal with tech titan Microsoft. Additionally, mergers and acquisition activity adds to its annual FFO per share growth rate, pushing it into double digits.

Brookfield Renewable’s growing profits should give it the power to continue increasing its high-yielding dividend (recently around 4.5%). The company aims to increase its payout by 5% to 9% per year over the long term.

This growing dividend offer to investors a good income stream and basic return. Add to that a double-digit earnings growth rate and Brookfield Renewable could produce total returns of around 15% over the next five years.

Lots of growth still to come

Prologis has also done an excellent job of enriching its investors over the years. THE Industrial REIT has generated an average annual total return of 13.6% over the past decade. This exceeded the S&P 500’s average annual total return of 13% during this period.

The REIT has experienced rapid growth, especially over the past five years. Prologis has grown its basic FFO per share at an annual rate of 12% over the past five years, significantly faster than the 7% earnings growth rate of the S&P 500. It has benefited from strong rental growth , value-creating development projects and accretive acquisitions. At the same time, the REIT has increased its dividend at a compound annual rate of 13% during this period, more than double the 5% dividend growth rate of S&P 500 companies.

The leader in industrial REITs plans to continue its growth has strong pace over the next few years. Prologis sees organic growth drivers such as rising rents, development projects, expansion of third-party investment management and energy installations, driving 9-11% annual growth in its core FFO per year. stock through 2026. This does not include the effect of acquisitions, which have historically improved its per-share growth rate.

These strong growth prospects place Prologis in a solid position to continue to increase its dividend at approximately a double-digit annual rate. With a current yield of 3.5% (more than double the S&P 500’s 1.4% yield), Prologis can provide a strong, rapidly growing revenue stream and core yield. Add in its earnings growth and it could generate total annual returns of between 15% and 15% over the next few years.

Proven wealth creators

Brookfield Renewable and Prologis have a long history of making their investors rich. They have grown their profits and dividends at above-average rates, and this is expected to continue in the future. Because of this, they are in strong positions to make their investors even more richer over the next three to five years. This makes them great stocks to buy now to build your wealth in the years to come.

Should you invest $1,000 in Brookfield Renewable right now?

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Matt DiLallo holds positions in Brookfield Renewable, Brookfield Renewable Partners and Prologis. The Motley Fool ranks and recommends Brookfield Renewable, Microsoft and Prologis. The Motley Fool recommends Brookfield Renewable Partners and recommends the following options: long January 2026 $395 calls on Microsoft, long January 2026 $90 calls on Prologis, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

2 Stocks That Can Help You Get Richer in the Next 3-5 Years was originally published by The Motley Fool

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