I had an interesting revelation recently — that I want to retire very comfortably. This came to me while vacationing with my family in Florida, watching with admiration and a little bit of envy the flock of semi-permanent snowbirds that are leading a simple, yet awesome life. Retiring comfortably seems like an obvious goal that we all share, but making that decision become a reality takes time, patience, and, most importantly, selecting the right mix of investments to help you get there. Fortunately, the market provides us with ample options to ensure that dream becomes a reality. Here are several…
To keep reading, enter your email address or login below.
I had an interesting revelation recently — that I want to retire very comfortably. This came to me while vacationing with my family in Florida, watching with admiration and a little bit of envy the flock of semi-permanent snowbirds that are leading a simple, yet awesome life.
Retiring comfortably seems like an obvious goal that we all share, but making that decision become a reality takes time, patience, and, most importantly, selecting the right mix of investments to help you get there.
Fortunately, the market provides us with ample options to ensure that dream becomes a reality. Here are several investments that can help your portfolio get to that point.
Exchange Income Corporation (TSX:EIF) is a well-diversified company that has incredible growth and income-generation opportunities. The Winnipeg-based company owns over one dozen subsidiary companies that are focused on the aviation and manufacturing sector of the economy.
Many of those subsidiary companies operate in a niche in remote regions of the country, where there is a need for that service and there is limited, if any, competition, allowing the businesses to generate cash flow and earn profits. Prime examples of this include providing medevac to remote regions of Nunavut and northern Manitoba via Keewatin Air.
That niche element extends to the manufacturing arm of the company. The company offers services through its manufacturing subsidiaries, ranging from manufacturing steel tanks to communications infrastructure.
From an income standpoint, Exchange Income offers investors a lucrative monthly dividend which pays out a 7% yield.
Enbridge Inc. (TSX:ENB)(NYSE:ENB) is another company that holds massive potential for both income- and growth-seeking investors.
Enbridge is an energy infrastructure company like no other. The company boasts the largest oil and gas pipeline on the continent, with 27,000 km of pipeline that carries a third of all North American-produced oil.
Oil that traverses Enbridge’s network is subject to a fee; it operates in a way that is not unlike a toll road.
Enbridge’s acquisition of Spectra Energy Corp., completed last year, led the company to take on a considerable amount of debt, which led to a sell-off and credit downgrade of Enbridge. A series of asset sales and restructuring initiatives have helped boost Enbridge recently, but the company is still trading at a discount, which is incredible considering the lucrative and secure business it operates in.
Enbridge provides a quarterly dividend which pays an impressive 5.75% yield.
Another great pick from the energy sector is TransAlta Renewables Inc. (TSX:RNW). TransAlta is, as the name suggests, a renewable energy company, with gas, hydro, and wind elements with over 30 locations around the world.
Energy companies are increasingly turning away from fossil fuel-burning facilities to ones that are based on renewable energy, which provides an opportunity for companies like TransAlta to gain entry. This becomes even more prevalent, as the price of oil creeps upwards as regulated power agreements can typically span upwards of two decades and provide a stable and secure source of revenue.
TransAlta Renewables provides an appetizing monthly dividend which pays a yield of 7.55%.
Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) is another compelling investment option. As the smallest of the Big Four telecoms in Canada, Shaw is often erroneously passed over in lieu of its larger peers by many investors.
Until recently, Shaw lacked a true mobile offering to rival its peers, but that changed when the company purchased the assets of the former carrier Wind Mobile and re-branded the service under a new name, Freedom Mobile.
Shaw’s entry into the mobile space plays on the growing dissatisfaction that customers have with the larger carriers as well as the disruptive nature of the Wind Mobile offering that customers loved, which Shaw has committed to keeping in place.
So far, Freedom mobile has surpassed expectations and garnered thousands of new subscribers, including 54,000 in the most recent quarter, bringing the total number of subscribers to over 1.3 million. That number is likely to continue growing, as Shaw recently announced a series of new retail locations for Freedom Mobile across the country.
In terms of a dividend, Shaw offers a monthly payout with a handsome 4.36% yield.
When you buy heavily cyclical stocks at low prices... and then hold the shares until the cycle reaches its peak... you can make a very healthy profit.
Every investor knows that. But many struggle to identify the best opportunities.
Except The Motley Fool may have a plan to solve that problem! Our in-house analyst team has poured thousands of hours into their proprietary research - and this is the result.
Our top advisor Iain Butler has just identified his #1 stock to buy in 2018 (and beyond).
The last time this stock went from the low point of its cycle to the peak... shares shot from $12 to $40 inside of 4 years. That's an 300%-plus return. And if you missed out on that ride, today might just be your second chance.
Fool contributor Demetris Afxentiou has no position in any stocks mentioned. Enbridge is a recommendation of Stock Advisor Canada.