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One of the easiest ways to grow wealth is a simple buy-and-hold strategy that âsets it and forgets itâ. In this strategy, you buy a selection of best-in-class TSX stocks, hold them long term (ideally forever), and watch your nest egg steadily grow. Investment returns tend to compound with dividend growth and reinvestment, and could snowball into a sizeable retirement fund â financially setting you up for life.
An investment in Intact Financial (TSX:IFC) stock today could generate steady capital gains, earn growing quarterly dividend paycheques for a lifetime, and help set you up for a pretty long, worry-free retirement.
Intact Financial stock: A reliable growth engine
Intact Financial, a Canadian insurance giant, has grown into a global financial industry force organically and through strategic acquisitions over the past two decades. It has excelled at generating strong shareholder returns, consistently outperforming market peers. Consequently, its reputation remains intact.
The $43 billion property and casualty insurer was a significantly smaller player in 2009, boasting a market capitalization of just $4.3 billion. Since then, IFC stock has grown tenfold through organic business volume expansion, sustained profitability, and accretive acquisitions. Its proven business strategy positions it well for continued stock price appreciation beyond the next decade.
Intact Financialâs track record speaks for itself. Since going public 20 years ago, IFC stock has generated a staggering 1,288% in total returns for shareholders. A $10,000 investment back in 2004 would be worth over 102,000 today. The stockâs potential for generating wealth is far from exhausted.
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IFC data by YCharts
How will Intact Financial continue to reward investors?
The insurance giantâs focus on strategic acquisitions remains a key growth driver. It opportunistically acquired a United Kingdom-based competitor recently to grow volumes. The company has closed nine accretive acquisitions since 2009.
Further, organic growth in underwritten premiums should remain positive, fueled by healthy economies in Intact Financialâs markets, positive interest rate regimes, strong brand recognition, population growth rates in target markets due to immigration, and Intact Financialâs continuous innovation expanding its market share.
Innovation: The key to unlocking IFC stockâs future growth
Intact Financial has already deployed more than 93 artificial intelligence (AI) models to maintain agility, gain a data-driven competitive edge, control costs, and attract more business from customers.
Investments in operational efficiency and data-driven performance should propel Intact Financial towards achieving its long-term goal of 10% annual growth in net operating income per share (NOIPS) and exceeding industry return on equity (ROE) by 500 basis points.
The company has historically comfortably beaten its long-term targets. Recent management reports show IFC stock delivered a 12% compound annual growth rate in NOIPS and exceeded average industry ROE by 6.8% over the past decade.
Intact Financialâs strong NOIPS growth over the past decade translated into a 15.7% average annual total return on IFC stock. Continued income growth and above-average ROE can attract further investment, fuelling sustained share price appreciation beyond the next decade.
Sustainable dividends enhance shareholder value
Intact Financial offers a quarterly dividend with a 2% annual yield. The dividend yield seems low for new dividend investors today only because the stock price has persistently rallied. Management has raised dividends for 19 consecutive years while IFC stockâs dividend growth averaged 9.6% per annum over the past decade. The dividend is healthy given an earnings payout ratio of 52%.
Growing dividends can significantly compound returns on IFC stock, setting you up for a lifetime of increasing passive income. For example, investors who bought the stock at prices under $29 a share in December 2004 earned $0.163 per share in quarterly dividends ($0.65 annualized). The quarterly payout has grown to $1.21 per share ($4.84 annualized) today. Early investors in 2004 could be earning a 17% dividend yield (on cost) this year. Their dividend âearningsâ have substantially grown. They are well set for a lifetime of passive income.
If you want in on this proven TSX stock that has set others up for life, you can purchase some shares today. The stock appears fairly valued with a forward price-to-earnings (PE) multiple of 15.4 and a price-earnings-to-growth (PEG) ratio of 1.2, which implies IFC stock is appropriately priced considering its strong potential for double-digit earnings growth.
The post 1 TSX Stock That Could Help Set You Up for Life appeared first on The Motley Fool Canada.
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增加財富的最簡單方法之一是簡單的 “買入並持有” 策略,該策略會先調整財富然後忘記財富。在此策略中,您可以購買精選的多倫多證券交易所一流股票,長揸(最好是永久持有),然後看着您的儲備金穩步增長。投資回報往往會與股息增長和再投資相結合,並可能滾雪般湧入一個規模龐大的退休基金,爲你的人生做好財務準備。
今天對Intact Financial(多倫多證券交易所股票代碼:IFC)股票的投資可以產生穩定的資本收益,終身賺取不斷增長的季度股息支票,並幫助您爲漫長、無憂的退休生活做好準備。
完好無損的金融股:可靠的增長引擎
加拿大保險巨頭Intact Financial在過去二十年中通過戰略收購有機發展成爲全球金融業的力量。它擅長創造豐厚的股東回報,表現一直優於市場同行。因此,其聲譽保持不變。
這家價值430億美元的財產和意外傷害保險公司在2009年規模要小得多,市值僅爲43億美元。從那時起,通過業務量的有機擴張、持續的盈利能力和增值收購,國際金融公司的股票增長了十倍。其久經考驗的商業戰略爲其在未來十年之後的持續股價上漲做好了準備。
完好無損的Financiala的往績不言自明。自20年前上市以來,國際金融公司的股票爲股東創造了驚人的1,288%的總回報。早在2004年,一筆1萬美元的投資今天的價值將超過10.2萬美元。股票創造財富的潛力遠未耗盡。
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YCharts 提供的 IFC 數據
Intact Financial將如何繼續獎勵投資者?
這家保險巨頭對戰略收購的關注仍然是關鍵的增長動力。它最近機會性地收購了一家總部位於英國的競爭對手,以增加銷量。自2009年以來,該公司已經完成了九次增值收購。
此外,在Intact Financiala's市場的健康經濟、正利率制度、強勁的品牌知名度、移民導致的目標市場人口增長率以及Intact Financiala不斷創新擴大其市場份額的推動下,承保保費的有機增長應保持正增長。
創新:解鎖國際金融公司股票未來增長的關鍵
Intact Financial已經部署了超過93種人工智能(AI)模型,以保持靈活性,獲得數據驅動的競爭優勢,控制成本並吸引更多客戶的業務。
對運營效率和數據驅動績效的投資應推動Intact Financial實現其長期目標,即每股淨營業收入(NOIPS)年增長10%,超過行業股本回報率(ROE)500個點子。
該公司歷來輕鬆實現其長期目標。最近的管理報告顯示,在過去十年中,國際金融公司股票的NOIPS複合年增長率爲12%,超過行業平均投資回報率6.8%。
Intact Financiala在過去十年中NOIPS的強勁增長轉化爲國際金融公司股票的平均年總回報率爲15.7%。持續的收入增長和高於平均水平的投資回報率可以吸引更多的投資,從而推動未來十年股價的持續升值。
可持續分紅提高股東價值
Intact Financial提供季度股息,年收益率爲2%。對於今天的新股息投資者來說,股息收益率似乎很低,這僅僅是因爲股價持續上漲。管理層已連續19年提高股息,而在過去十年中,國際金融公司股票的股息平均每年增長9.6%。鑑於收益支付率爲52%,股息是健康的。
不斷增長的股息可以顯著增加國際金融公司股票的回報,爲您終身增加被動收入做好準備。例如,在2004年12月以低於每股29美元的價格購買股票的投資者每股可獲得0.163美元的季度股息(按年計算爲0.65美元)。今天,季度派息已增長至每股1.21美元(按年計算爲4.84美元)。2004年的早期投資者今年可能獲得17%的股息收益率(按成本計算)。他們的股息收益大幅增長。他們爲終身的被動收入做好了充分的準備。
如果您想購買這隻久經考驗的TSX股票,這使其他人終身受益,則可以立即購買一些股票。該股看似估值合理,遠期市盈率(PE)倍數爲15.4,市盈率(PEG)爲1.2,這意味着考慮到其兩位數收益增長的強大潛力,IFC股票的定價是適當的。
《一隻可以幫助你爲生活做好準備的多倫多證券交易所股票》一文首次出現在《加拿大Motley Fool》上。