Yahoo Finance 2 Soaring Stocks to Hold for the Next 20 Years
Written by Christopher Liew, CFA at The Motley Fool Canada
There’s no rule on how long you should hold a stock. In Canada, the Big Five banks have paid dividends for more than 100 years. Given the payout records, passive income investors can buy and hold the bank stocks forever. If you’re a long-term investor, two soaring stocks today could zoom higher and deliver healthy returns in the next 20 years or more.
AtkinsRéalis Group (TSX:ATRL) and MDA Space (TSX:MDA) don’t have lengthy dividend payment records but are screaming buys. The former is an established engineering and construction firm, while the latter belongs to the fast-growing aerospace and defence industry. Both companies have favourable business outlooks and visible growth prospects.
Deliver excellence and drive growth
AtkinsRéalis, formerly SNC-Lavalin, provides engineering, procurement, and construction services to vital industries such as environment and water, infrastructure, clean energy, and nuclear. The $11.2 billion company continues to secure landmark projects globally.
At $65 per share, ATRL is up 52.5% year-to-date and pays a modest 0.13% dividend. In the first half of 2024, total revenues and net income climbed 10.2% and 27.8% year-over-year respectively to $4.6 billion and $127.7 million. At $65 per share, ATRL is up 52.5% year-to-date.
As of June 30, 2024, the backlog was $15.2 billion, 19.4% higher than a year ago. “We continue to see robust demand for our engineering services business, and the market remains strong, as witnessed by our record backlog,” said Ian L. Edwards, President and CEO of AtkinsRéalis.
Management said the company has entered the next phase of its growth journey. The theme of its business strategy from 2025 to 2027 is “Delivering Excellence, Driving Growth.” AtkinsRéalis plans to reinvest in the business while seeking accretive acquisitions and investments to enhance its global footprint.
The primary objective is to make AtkinsRéalis simple and focused on engineering services and nuclear. AtkinsRéalis will capitalize on opportunities in fast-growing markets, replace infrastructure, and provide new and needed infrastructure worldwide.
Early this month, the UK’s largest listed water company, United Utilities, chose AtkinsRéalis as one of three design and development partners (DDP). The major environmental program, an 11-year contract, is worth up to US$117 million for each DDP.
High-growth technology investment
MDA, a space mission partner, is an attractive investment option because of the rapidly expanding global space industry. The 55-year-old $2.5 billion company designs and manufactures communications satellites and space and exploration infrastructure, and observes Earth and space.
As of this writing, the share price is $21.57. Current investors enjoy an 87.2% year-to-date gain. Had you invested $5,000 at year-end 2023, your money would be $9,361.97 today. The stock’s performance reflects the rising net income in the last two years ($35.6 million average).
In Q2 2024, revenues and adjusted net income increased 23.5% and 6.4% respectively to $242 million and $23.4 million versus Q2 2023. MDA has the makings of a high-growth stock due to its next-generation space technologies, space mission expertise, and leadership position in the space industry.
Excellent holdings
AtkinsRéalis and MDA Space are excellent choices for investors seeking further diversification. Moreover, you can stay invested for years because the respective businesses are here to stay.
The post 2 Soaring Stocks to Hold for the Next 20 Years appeared first on The Motley Fool Canada.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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