Some companies seem unstoppable. They have the investment opportunities and financial capacity to steadily expand their business and consistently grow their earnings. This unstoppable growth enables them to produce excellent returns for their investors over the long haul.
Three stocks that appear to have unstoppable growth ahead are Brookfield Infrastructure (BIPC 1.21%) (BIP 0.36%), Fiverr (FVRR 4.07%), Paycom (PAYC 0.74%), and Realty Income (O 0.11%). Here's why investors with $1,000 available should consider spreading that money across this quartet.
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Powerful growth drivers
Brookfield Infrastructure has delivered unstoppable growth since its formation in 2009. The global infrastructure operator has grown its funds from operations (FFO) per share at a 15% compound annual rate during that timeframe. That's given it the fuel to expand its distribution at a 10% compound annual rate. This high-octane growth rate has enabled Brookfield to generate 18% total annualized returns since its inception.
The company's growth is showing no signs of stopping. The global economy needs to invest trillions of dollars in improving and enhancing its infrastructure in the coming years. That should provide Brookfield with plenty of investment opportunities, including development projects and acquisitions. On top of that, the company benefits from inflation -- 70% of its FFO has inflation-linked rate adjustments -- and higher commodity prices (higher prices should drive more volumes across its infrastructure). Meanwhile, Brookfield has a top-notch financial profile to fund growth. That leads the company to believe it can grow its distribution at a 5% to 9% rate in the coming years, supported by even faster FFO per share growth.
Powering the future of work
Fiverr is benefiting from the shift in how we work. The company's platform matches freelancers with companies seeking digital services. This trend has accelerated during the pandemic. More people are opting for the flexibility and upside of working for themselves than the stability of being an employee.
That helped drive 57% revenue growth for Fiverr last year as more companies joined its platform and purchased more digital services from its freelancers. While growth will moderate in 2022 -- it expects 25% to 27% year-over-year revenue growth -- that's more due to an unfavorable comparable period than a deceleration in its business (it sees an acceleration in the second half of the year). Overall, Fiverr has a $115 billion market opportunity in the freelancing categories its serves as more of this market moves online. That should enable the company to continue growing rapidly for years to come.
A long way to grow
Paycom developed an all-in-one cloud-based solution for payroll and human resources management. Its platform has been steadily catching on with customers, driving continuous revenue growth for Paycom. Revenue grew by 25.4% year-over-year in 2021 as it expanded its customer count and relationship with existing clients.
The company is still just scratching the surface of its market potential. Paycom estimates that it has about a 5% share of the large and growing payroll and HR services market. It's investing heavily in sales, marketing, and product innovation to win more market share. It also recently opened five new outside sales offices to capture more market share and raised its target client to those with up to 10,000 employees. With such a small piece of an enormous market, Paycom has lots of room to keep growing.
Focused on an enormous opportunity
Realty Income has been one of the most consistent growers in the real estate investment trust (REIT) sector over the years. The company has increased its dividend in 97 straight quarters. Overall, it has grown the payout at a 4.4% annual rate since its initial public offering in 1994. That's helped drive 15.5% compound average annual total returns since coming public.
The REIT doesn't see its growth stopping anytime soon. It wants to be a top-five global REIT (it's currently in the top 10) as it continues to expand its portfolio. Realty Income sees a $12 trillion addressable market in its core focus area of net lease real estate (properties leased back to the operator under triple-net agreements). It has one of the strongest financial profiles in the REIT sector, giving it plenty of fuel to continue consolidating the net lease sector. That should enable the REIT to keep growing its dividend.
Great stocks to help grow your wealth
Brookfield Infrastructure, Fiverr, Paycom, and Realty Income have grown steadily for years. That doesn't seem likely to stop anytime soon. All four companies are focusing on massive market opportunities, which should enable them to continue expanding at a healthy rate for years to come. That makes them great growth stocks for investors to buy since they have the potential of growing a relatively small initial investment like $1,000 into a much larger windfall over the long term.
