Millennials: Who Said Generating Income Has to Be Boring?

This ain’t your grandma’s portfolio. Generate yield with some exciting names such as Callidus Capital Corp. (TSX:CBL).

Whether it’s saving up for a vacation in Cabo, that cool new smartphone, or paying off crippling student debt, millennials can always use a bit of extra coin in their coffers. And if you’re reading this, you probably already know about the benefits of a passive income stream through the myriad of dividend-paying stocks and ETFs that are currently trading in the markets.

But let’s be honest: dividend stocks have a stigma of being, well, boring. So, instead of the same, old, plain vanilla utility or bank that your parents have in their RRSPs, here are some exciting yield payers for the younger generation.

Instead of a large-cap oil name, go with Vermilion Energy Inc. (TSX:VET)(NYSE:VET), a fast-rising mid-cap oil and gas producer with assets across North America, Europe, and Australia.

There are four reasons why I would pick Vermilion over a run-of-the-mill oil name. First, it pays a hefty 4.51% yield (which it has never cut, even when oil hit $30/bbl). Second, because it’s smaller, Vermilion will outperform the bigger names as oil recovers. Third, it boasts some of the best netbacks, or margins, in its class. Finally, the company implemented excellent cost-cutting measures and ramped up production during the oil downturn; it’s now poised to rebound with oil.

Instead of an overpriced Vancouver or Toronto house, go with H&R Real Estate Investment Trust (TSX:HR.UN), a large-cap, diversified REIT with assets in Canada and the U.S. Currently, H&R is trading at a discount to its NAV per share of $24.50, while boasting a 6% yield (significantly higher than the peer average of 4.5%). H&R also possesses an excellent balance sheet and growth opportunities through retail- and multi-family-unit expansion in the U.S.

Instead of a Big Five bank, go with Callidus Capital Corp. (TSX:CBL). Just like the beautiful Rocky Mountains, the boring Canadian banks will always exist. But Callidus won’t, and that’s because it might be taken private this year at a significant premium to its current share price. Moreover, this small-cap, non-traditional lender is paying out nearly 6% with a net interest margin around 11% (the big banks make around 2% in comparison) and ROE of 15.7% year to date.

Instead of a boring utility, go with Telus Corporation (TSX:T)(NYSE:TU). Telus currently pays a safe yield of 4.41%, while growth drivers will come by way of next-gen “PureFibre” high-speed internet. Furthermore, one quality of Telus that should sit well with millennials is the company’s focus on environmentally friendly, sustainable strategies which are well recognized in the industry; this is especially impressive given that the company’s operating metrics are on par, or better, than its competitors in the telecom space.

Finally, let’s wrap it up with some tech via First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV). With core holdings in U.S. tech heavyweights such as Apple, Intel, and Microsoft, you can generate a nice 2.42% yield, while “future proofing” your yield portfolio through a who’s who of technology.

So, there you have it, millennials. Who says making money has to be a snooze fest? Instead of sticking with boring and bland blue chips, why not track slightly off the beaten path and pick up some lesser-known names (Okay, so Telus is not exactly a small cap), while also getting exposure to the best companies in the world?

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 Alexander John Tun has no position in any stocks mentioned. David Gardner owns shares of Apple. The Motley Fool owns shares of Apple and has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple.

More on Dividend Stocks

A worker drinks out of a mug in an office.
Dividend Stocks

A Dividend Giant I’d Buy Over BCE Stock Right Now

The largest telecom company in Canada is brutally discounted, and the dividend yield is naturally up, but it's too risky…

Read more »

a man celebrates his good fortune with a disco ball and confetti
Dividend Stocks

Get Ready to Invest $7,000 in This Dividend Stock for New Year Passive Income

This is the year you get ahead, and maxing out your TFSA contribution is the best way to start.

Read more »

ways to boost income
Dividend Stocks

Buy 2,653 Shares of This Top Dividend Stock for $10K in Annual Passive Income

Enbridge is a blue-chip TSX dividend stock that offers shareholders a forward yield of 6%. Is it still a good…

Read more »

Blocks conceptualizing the Registered Retirement Savings Plan
Dividend Stocks

CPP at 70: Is it Enough if Invested in an RRSP?

Even if you wait to take out CPP at 70, it's simply not going to cut it during retirement. Which…

Read more »

a person looks out a window into a cityscape
Dividend Stocks

1 Marvellous Canadian Dividend Stock Down 11% to Buy and Hold Immediately

Buying up this dividend stock while it's down isn't just a smart move, it could make you even more passive…

Read more »

happy woman throws cash
Dividend Stocks

Step Aside, Side Jobs! Earn Cash Every Month by Investing in These Stocks

Here are two of the best Canadian monthly dividend stocks you can consider buying in December 2024 and holding for…

Read more »

chip with the letters "AI" on it
Dividend Stocks

The Top Canadian AI Stocks to Buy for 2025

AI stocks are certainly strong companies, and there are steady gainers in Canada as well. But these three are the…

Read more »

calculate and analyze stock
Dividend Stocks

2 High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These stocks pay attractive dividends for investors seeking passive income.

Read more »