3 Stocks That Could Make Your Grandchildren Rich

Are you building portfolios for your grandchildren? If so, stocks such as Northview Apartment REIT (TSX:NVU.UN), Exchange Income Corporation (TSX:EIF), and First National Financial Corp. (TSX:FN) should be core holdings.

| More on:

As intelligent investors know, dividend-paying stocks generate much higher returns than non-dividend-paying stocks over the long term. It is for this reason that I think dividend-paying stocks should be the primary holdings in portfolios that seniors build for their grandchildren. With this in mind, let’s take a look at three monthly dividend stocks with yields up to 10.05% that you could buy today.

1. Northview Apartment REIT

Northview Apartment REIT (TSX:NVU.UN) is one of the largest residential landlords in Canada with over 24,000 residential suites across eight provinces and two territories. It pays a monthly distribution of $0.1358 per share, or $1.6296 per share annually, which gives its stock a 10.05% yield at today’s levels.

Investors should also note that Northview has raised its annual distribution for three consecutive years, and I think its increased amount of funds from operations, including 3.6% year-over-year growth to $58.5 million in the first nine months of fiscal 2015, could allow for another small increase in 2016.

2. Exchange Income Corporation

Exchange Income Corporation (TSX:EIF) is an acquisition-oriented corporation focused on opportunities in the aviation and manufacturing sectors, and it currently has 13 subsidiaries. It pays a monthly dividend of $0.16 per share, or $1.92 per share annually, which gives its stock an 8.7% yield at today’s levels.

Investors must also note that Exchange Income Corporation has raised its annual dividend payment for five consecutive years, and its 10.3% increase in August 2015 puts it on pace for 2016 to mark the sixth consecutive year with an increase.

3. First National Financial Corp.

First National Financial Corp. (TSX:FN) is Canada’s largest non-bank lender with over $92 billion in mortgages under administration. It pays a monthly dividend of $0.129167 per share, or $1.55 per share annually, which gives its stock a 7.8% yield at today’s levels.

It is also very important for investors to note that First National has raised its annual dividend payment every year since it converted itself into a corporate entity in January 2011, resulting in four consecutive years of increases, and its 3.3% increase in October 2015 puts it on pace for 2016 to mark the fifth consecutive year with an increase.

Which of these stocks should you buy for your grandchildren?

Northview Apartment REIT, Exchange Income Corporation, and First National Financial could put your grandchildren on the path to financial freedom, so take a closer look and strongly consider establishing positions in at least one of them today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »

Payday ringed on a calendar
Dividend Stocks

3 Dividend Stocks That Pay Me More Than $54.57 Per Month

These three dividend stocks have done me well over the years, so let's look at how much I've gotten in…

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Royalty: 3 Fabulous Stocks to Buy Now for Decades of Passive Income

Rogers Communications stock and Canadian Natural Resources stock could pay you dividends for decades to come.

Read more »

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

For growth and dividends this April, look to these two REITs that have quite the promising present as well as…

Read more »