Millennial Couples: 2 Stocks to Grow Your $100,000 TFSA to $1 Million

Millennial couples who are among the many TFSA investors can turn a $100,000 balance to $1 million over the long term with TORC Oil & Gas stock and MCAN Mortgage stock.

| More on:
Mature financial advisor showing report to young couple for their investment

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The millennial generation is known as the “money-conscious” generation. It’s the appropriate tagline, as young adults today love to save money. You can imagine the power of two when a millennial couple starts saving. Saving money, however, will only go as far as instant liquidity when you need cash.

Millennial couples with $100,000 savings in their TFSA can open the gateway for more money. The balance can exponentially grow with the right dividend stocks. TORC (TSX:TOG) and MCAN (TSX:MKP) offer an average dividend of 8%. With a long investment window, your TFSA balance can swell to $1 million.

Intuitive explorer

Calgary-based TORC is an oil and gas company that is into the exploration and production of petroleum and natural gas in the Western Canadian Sedimentary Basin. You can find the principal properties of the company in the southeastern Saskatchewan area.

Since the start of operations, TORC is focusing on asset quality and financial flexibility. But the company is aware of the inherent risks of the business. Aside from the discovery of the hydrocarbon reserves, it should be economically produced.

The financial risks include fluctuations in commodity prices, interest rates, currency exchange rates. TORC should also have access to debt and equity financing at a reasonable cost. On the operations side, the risks are competition, environmental factors, and reservoir performance uncertainties, plus a complex regulatory environment and safety concerns.

TORC counters the business risks by operating a large number of its properties. By doing so, the company can control the timing, direction, and costs related to exploration and development opportunities.

The energy stock is a low-priced dividend stock and pays a high yield.

Strategic investor

The almost two-decade-old MCAN is a mortgage investment corporation based in Toronto, Canada. This $390.9 million company offers single-family residential mortgages, residential construction, non-residential construction, and commercial loans. It is also into real estate and securitization investments.

The mortgage business has a notorious image, but MCAN has been generating profit and revenue as a strategic investor in Canadian mortgages. The risk is not high, as it’s a federally regulated mortgage investment corporation, which is funded by the Canadian Deposit Insurance Corporation (CDIC) eligible term deposits

In the third quarter ending September 30, 2019, MCAN was happy to report a 32% increase in net income versus the same quarter. Likewise, the return on average shareholders’ equity increased from 14.29% to 18.05% in Q3 2019.

The stock is an interesting dividend play, as it yields 7.89%. The dividends are sustainable, as MCAN continues to generate a reliable stream of income from its diversified portfolio of Canadian mortgages.

Wealthy couple at 50

Partners who are both 20 years old and have $50,000 in savings each can realize a $1 million TFSA balance at age 50 if the yields of TORC (8.09%) and MCAN (7.89%) remain constant.

The biggest regret of baby boomer couples is not saving enough to enjoy retirement to the fullest. Millennial couples should learn from the folly of the older generation. The earlier that millennial couples can work together and start investing, the better.

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. The Motley Fool recommends Torc Oil And Gas Ltd.

More on Dividend Stocks

A plant grows from coins.
Dividend Stocks

1 Top Dividend Stock to Buy in August 2022 and Hold Forever

Leon's Furniture (TSX:LNF) stock is one of many quality dividend plays that could face most upside if a recession never…

Read more »

The sun sets behind a high voltage telecom tower.
Dividend Stocks

BCE (TSX:BCE): An Impressive 5.75% Yielder

Canada’s top 5G stock deserves top billing in a stock portfolio because of its Dividend Aristocrat status and impressive 5.75%…

Read more »

edit Back view of hugging couple standing with real estate agent in front of house for sale
Dividend Stocks

Why Real Estate Stocks Are a No-Brainer Addition to Your Portfolio

Real estate stocks, especially REITs, offer some distinct advantages over other types of stocks, making them must-have additions to most…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

3 Top TSX Dividend Stocks to Buy for Monthly Passive Income

Top TSX stocks with monthly dividends now trade at cheap prices for investors seeking passive income.

Read more »

Canadian Dollars
Dividend Stocks

Create Free Passive Income and Turn it Into Thousands With 1 TSX Stock

If you can't afford to invest, you can certainly create passive income another way and use that to invest in…

Read more »

Payday ringed on a calendar
Dividend Stocks

Canadian Dividend Investors: 2 ETFs That Pay Monthly Income With High Yields

Dividend ETFs often pay out monthly distributions compared to dividend stocks.

Read more »

think thought consider
Dividend Stocks

2 Stocks I Own and Will Buy More of if They Fall

Stocks tend to go up in the long run. Therefore, buying a basket of diversified stocks on dips should lead…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy for Passive Income

Blue-chip dividend stocks such as Royal Bank of Canada and Manulife Financial pay investors a tasty forward yield.

Read more »