Stock market corrections, though unsettling, are often prime buying opportunities. Millionaire investors recognize this and opt for growth stocks with stable business models that pay dividends, in their wealth-building portfolios. In times of uncertainty and volatility, dividend-paying companies with clear and consistent profitability and a clear growth trajectory shine.
It’s never too early to build with stocks to become a millionaire. Regardless of market conditions, opportunities always exist. In a bull market, consider overlooked safe stocks; in today’s tough market, grab discounted growth stocks. While some struggle, their long-term potential remains bright. Now is the time to acquire these opportunities at lower costs. Here are three excellent growth stocks that can aid your journey to wealth.
Restaurant Brands (QSR)
Restaurant Brands (NYSE:QSR) owns fast-food giants like Tim Horton’s, Burger King, Popeye’s, and Firehouse Subs. These world-class banners have driven impressive growth, supporting a 3.3% dividend yield. Under former Domino’s (NYSE:DPZ) exec Patrick Doyle, the company achieved a 9.7% revenue increase this past quarter, 10% global sales growth, and a 15.6% EBITDA surge to $588 million.
In August, Restaurant Brands revealed a 10% increase in Q2 sales compared to the previous year. The company reported earnings per share of 85 cents, surpassing Wall Street’s expected 77 cents. Revenue reached $1.78 billion, exceeding analysts’ $1.75 billion forecast. Burger King, recently rebranded, achieved remarkable Q2 same-store sales growth of 10.2%, nearly double the forecasted 5.3%.
QSR stock has risen 14% in the past year and has plenty of room to run higher here due to its favorable valuation.
PepsiCo (PEP)
PepsiCo’s (NASDAQ:PEP) expanding portfolio and market dominance offset the general slowdown in the beverages market. While PepsiCo and Coca-Cola (NYSE:KO) outperform competitors, PepsiCo achieves higher quarterly revenues due to its broader product range.
However, Pepsi’s pricing power is weaker in non-beverage segments, leading to lower gross margins. Cost-cutting measures, including layoffs, have helped counter rising operating expenses driven by labor, transportation, and raw material costs, ultimately benefiting the bottom line.
Sales grew in all segments and regions last quarter, boosting total revenue to $22.3 billion, a 10% year-over-year increase. This drove a 12% rise in adjusted earnings to $2.09 per share, with a 13% increase in organic revenue. These results exceeded expectations, reflecting the company’s consistent performance over a decade, even during the pandemic.
Microsoft (MSFT)
Microsoft Corp (NASDAQ:MSFT) stands out with robust growth and a focus on quantum computing, aiming to build a quantum supercomputer within a decade. Azure Quantum Elements and improvements in the Azure Quantum Development Kit demonstrate their commitment to quantum technology leadership.
With a year-to-date return of 30%, Microsoft inspires investor confidence. In Q4 2023, it reported a $20.08 billion net income, up 20%, and $56.19 billion in revenue, an 8% year-over-year increase, surpassing earnings expectations with a 5.59% earnings surprise.
Microsoft’s strong push into artificial intelligence (AI), highlighted by a $10 billion investment in OpenAI, the creator of ChatGPT, enhances its growth story. Integrating generative AI into Bing and various applications demonstrates technological synergy across domains, from cloud storage to gaming. MSFT stock’s impressive double-digit year-to-date increase reflects the tech giant’s thriving journey.
On the date of publication, Chris MacDonald has a LONG position in QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
