Written by Demetris Afxentiou at The Motley Fool Canada
Mixing growth and income stocks can help diversify your portfolio over the longer term. Finding these growth stocks can be a daunting task for some investors. Fortunately, the market gives us plenty of growth stocks to buy.
Here are two options for your portfolio.
This company wants to fly higher
When bombardier (TSX:BBD.B) sold its various parts a few years ago, leaving many pundits wondering about the future of the company. Finally, Bombardier sold its successful rail business as well as its commercial airline business. This left Bombardier with only the operation of smaller business aircraft.
And what a decision.
The company also weathered the pandemic, flirting with bankruptcy, government bailouts and the fallout from staff relocation by spinning off some of its operations.
Fortunately, today’s Bombardier is very different. The revamp of the Challenger and Global Express lines of jets has given the company a massive backlog of over $14.5 billion.
How is Bombardier doing now? The company is now paying off its debt. So far this year, Bombardier has paid out $773 million. Bombardier is also generating cash now — last quarter it earned $514 in free cash.
The popular Global 7500 has broken multiple speed and distance records, and the first-to-market customer Challenger 3500 shipped just this week.
In my opinion, Bombardier is a great growth stock to consider a small position in as part of a much larger, diversified portfolio.
Another growth stock to consider
Bombardier isn’t the only growth stock making waves. Restaurant Brands International (TSX:QSR)(NYSE:QSR) also deserves a look.
Restaurant Brands is the name behind the brands Burger King, Tim Hortons, Popeyes and most recently Firehouse Subs. The company has taken an aggressive approach to expanding its network, both domestically and internationally.
In particular, Restaurant Brands has taken the successful franchise model that helped Burger King expand to over 100 markets and applied it to its other brands.
In recent years this has helped Tim Hortons expand into international markets such as Spain, Mexico, the Philippines and the UK
So what exactly makes Restaurant Brands a great growth stock to consider? There are two compelling reasons investors should consider.
First, Restaurant Brands continues to expand and modernize. Tim Hortons’ international expansion coincides with an effort to bring the brand back to its core in Canada, where it has struggled in recent years.
These efforts are finally showing some growth that’s dovetailing well with post-COVID reopening efforts. In terms of results, that underscores an impressive 14% year-over-year revenue growth. It is expected that these numbers will continue to rise over the long term.
Alongside that growth potential is Restaurant Brands’ outstanding dividend. The stock offers a quarterly dividend that yields 3.70%. Reinvesting that income until the income is needed can boost long-term growth even more.
Long-term growth is also possible in a volatile market. The two growth stocks mentioned above offer long-term appeal and should be part of a much larger, well-diversified portfolio.
The post, “2 Growth Stocks to Buy Today” appeared first on The Motley Fool Germany.
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Stupid contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International Inc. The Motley Fool has a disclosure policy.