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3 TSX Stocks That Can Turn Retirement Dreams Into Reality

The Motley Fool ·  08/15 21:00

For those looking to build an incredible retirement, investing today can provide the income and growth one will need to sell assets when it comes time to do so. Accordingly, finding top TSX stocks that can grow faster than inflation and provide some level of income should be the top priority for millions of investors.

Those who find themselves in such a boat may want to consider the following three TSX-listed stocks. These are the companies I think can provide a long-term portfolio with the growth and dividends one will need to retire comfortably.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) is one of the largest corporations in Canada, operating a convenience store network in North America and Europe. The company provides a range of food, non-food items, and transportation fuels. Alimentation Couche-Tard distributes products through independent operators, merchandising, and franchisees; and offers carwash services. Over the last 10 years, Alimentation Couche-Tard has been a top performer on the Toronto Stock Exchange and offered consistent growth to its shareholders.

The recent expansion of Alimentation Couche-Tard on the European market through the Total Energies deal showcases its strategic acquisitions to enhance its operations. Alimentation Couche-Tard has seen impressive growth in 2023, reporting a revenue increase of 14.4% to $71.9 billion. Furthermore, its adjusted earnings per share and revenue increased at a CAGR of 15.2% and 6.2%, respectively. All these factors enabled the company to deliver 495% returns to shareholders over the past 10 years at an annualized rate of 19.5%.

Boyd Group Services

Boyd Group Services (TSX:BYD) is one of the largest automotive companies in Canada. It operates under the Boyd Autobody & Glass and Assured Automotive banner in Canada, and Gerber Collision & Glass in the United States. The company is one of the largest operators of non-franchised collision repair centres in North America and a major retail auto glass operator in the United States.

In the first quarter of 2024, Boyd Group Services Inc. reported adjusted EBITDA of US$81.7 million on sales of US$786.5 million. The net earnings were US$8.4 million for the period, and the total sales increased by 10% year-over-year, with an increase in same-store sales by 2.2%. Hence, Boyd Group Services Inc. can increase its cash flow, which will result in a higher stock valuation of its shares in the future.

Shopify

Shopify (TSX:SHOP) is one of the largest e-commerce giants in the world, offering a platform to small and medium-scale businesses to sell their products and services. The company generates revenue by charging companies to use its platform to list their services and products. As a brand, Shopify Inc. operates in more than 175 countries to provide customized, reliable, secure, and speedy services to online customers through its platform.

In the second financial quarter of 2024, Shopify's gross merchandise value increased by 22% to US$67.2 billion and revenue by 21% to US$ 2 billion. Furthermore, the company reported 25% growth in its revenue year-over-year after adjusting the sale of logistics businesses. Hence, it showcases Shopify Inc.'s dominance in the e-commerce industry and its capacity to become the best e-commerce platform for small and medium-scale businesses worldwide.

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