If you want to live an adventurous and not an ordinary life, you can relocate to a top retirement destination. Canadian national Marlene Houghton was able to do that at age 56. In 2013, Ms. Houghton moved to Belize, a beautiful, laid-back small island, where she has everything she wants for only $50,000 a year.
Living a life of adventure is possible if you start investing in stocks now. Your portfolio should consist of dividend stocks such as Exchange Income (TSX:EIF), Pinnacle Renewable Energy (TSX:PL), and Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) or CIBC.
With the three stocks, you can accumulate just as much if you decide to make the same move as Ms. Houghton.
Dividend rock star
Exchange Income is ideal for high-income seekers; this $1.22 billion company is the top choice in the aerospace industry because the industrials stock pays a high 6.0% dividend.
The Canadian firm acquires income-generating companies in the Aerospace & Aviation and Manufacturing sector. Its success rate in making meaningful acquisitions is close to 100%. Because of its remarkable success, Exchange Income was able to raise dividends for 13 straight years.
The company’s effort to grow its portfolio of diversified niche operations is still ongoing. Every addition would mean reliable dividend to shareholders as well as dividend growth in the coming years.
Unique electricity generator
Pinnacle is playing a crucial role in the renewable energy sector. It’s not an oil and gas E&P company, but rather a manufacturer, distributor, and seller of industrial wood pellets. From these wood pellets, the company produces renewable fuel for electricity generation.
The clients of Pinnacle are utility companies and those with large-scale power generators. These customers use Pinnacle’s industrial wood pellets to produce renewable and base load power. The company also provide carbon-neutral products for residential customers.
You can own the stock for less than $11.00 today and receive a 6.2% dividend. With that yield from this three-decade-old firm, your investment could double in less than 12 years.
Bank stock with the highest dividend
Everybody knows that the top Canadian banks are the safest investments, so it’s good to invest in the bank stock that pays the highest dividend in the sector. CIBC is a must-have stock if you have plans of migrating to an idyllic island. The bank stock currently yields 5.4%.
In 24 years, your total return could be 1,666.9%, including the reinvestment of dividends. The figure is based on historical data and an investment of $10,000. To some investors, CIBC is the number one way to retire at 50 and enjoy life to the fullest.
CIBC is also the top stock of retirees and dividend investors because it’s a low-risk, high-return investment. Your money is safe and without the risk of losing even a small fraction of it.
It’s your turn
Sometimes a dream remains a dream due to lack of financial resources to make it come true. Marlene Houghton, a former British Columbian resident, was able to fulfill her dream of living in the Caribbean because she had the money to relocate on a distant island.
A portfolio basket that combines Exchange Income, Pinnacle, and CIBC could help you create wealth and bring you closer to living the same life as Ms. Houghton.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned. Pinnacle Renewable Energy is a recommendation of Dividend Investor Canada.