Baby Boomers: 3 High-Yield Dividend Titans To Grow Your Nest Egg

Baby boomers can grow their nest eggs effortlessly with high-yield dividend titans Inter Pipeline Ltd. (TSX:IPL), Choice Properties Real Estate Investment Trust (TSX:CHP.UN), and Transcontinental Inc. (TSX:TCL.A).

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When you say there is strength in numbers, it means a group has influence or power than one person. In Canada, baby boomers have strength in numbers more than any other generation. This group has good health, longer life expectancy, and wealth.

Baby boomers are wealthy because they know how to grow their nest eggs. But what’s their secret? This prosperous generation has a strong dividend portfolio consisting of high-yield dividend titans.

It’s easy to follow the quest of baby boomers. Invest in Inter Pipeline (TSX:IPL), Choice Properties (TSX:CHP.UN), and Transcontinental (TSX:TCL-A) to grow your nest eggs quickly.

Prime safety net

For as long as you have Inter Pipeline in your portfolio, you won’t care if the market is good or bad. The market environment is irrelevant because the energy stock is a baby boomer’s safety net. You would be investing in a business that is low risk.

This nearly $10 billion global-scale energy infrastructure firm serves clients in two geographies: Canada and Europe. Almost all contracts of Inter Pipeline with its clients are commodity-insulated, inflation-adjusted, and more important, long-term.

The company can sustain paying high dividends to shareholders because of stable and growing cash flows. Thus, receiving the 7% dividend for years is as sure as daybreak. As a recurrent market performer, there’s modest capital gain from time to time.

But since the main objective is growing your nest egg, dividend growth is your bonus.

Money-making REIT

If you don’t have the capital to purchase real estate properties for investment purposes, your next best option is to invest in one of the largest real estate investment trusts (REITs) in Canada. You won’t have to dig deep in your pockets when you invest in Choice Properties.

For less than $15 per share, you gain instant exposure to the real estate sector. Currently, Choice Properties has 756 properties in its portfolio. The assets consist of high-quality residential, office, industrial, and retail properties.

These properties were hand-picked because of their attractive locations and potential for future development. But the more compelling reason to pick Choice Properties over other REIT stocks is the strategic partnership with Loblaw.

With the largest retailer in Canada as its principal tenant, Choice Properties has long-term growth opportunities. The stock pays a decent 5.16% dividend. By reinvesting the dividends, your overall total returns in a decade would be higher.

Growing synergy

You’re practically getting a package deal when you invest in Transcontinental. You have a growth stock with dividend titan status. Analysts covering the stock see a definite potential upside in addition to the juicy 5.57% dividend. The current price of $16.05 could rise by as much as 68.22% in the next 12 months.

The company has yet to achieve full synergy between the printing and packing businesses. But Transcontinental’s President and CEO François Olivier expect a progressive increase in profit margins in the coming quarters. The more than four decades old company is entering its next phase of growth.

Strong grouping

The fastest way to grow a baby boomer’s nest egg is through dividend titans the likes of Inter Pipeline, Choice Properties, and Transcontinental. You’re creating a strong dividend portfolio by investing in all.

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 Christopher Liew has no position in any of the stocks mentioned.

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