The Motley Fool

Learn How This Millennial Saved $1 Million in 10 Years in 3 Simple Steps

Image source: Getty Images

A financial website recently reported an unbelievable tale of a millennial that saved US$1 million in 10 years. The amazing thing was that this person did not have a super-high salary.

The journey

The first leg of this millennial’s journey was to live with parents to be rent-free and save 80% of take-home pay. Second, the millennial did not have a spouse or children and student loans to repay. Third, he invested in the real estate sector, which paid 10% dividends. Money grew from regular income and investments alone.

Earn your $1 million

American Hotel Income Properties (TSX:HOT.UN), or AHIP, is a “hot” item. This $542 million real estate investment trust (REIT) offers a fantastic 12.41% dividend. Regardless of the amount, you can double your money in fewer than six years.

This REIT was into economy lodging to generate rental income. But AHIP is now shifting to premium-branded hotels, which belong in the high-end market. By acquiring high-quality assets in key American cities, AHIP can improve the less than 0.5% sales that flow into the bottom line.

AHIP’s year-to-date gain is 19%, although the share price was 25% higher over the last couple of years. The lucrative dividend is the compelling reason to invest in the stock.

There is financial pressure lately on AHIP. But the moves of AHIP directors to purchase more shares and the non-sale of shares by insiders should boost the confidence of would-be investors.

Chemtrade (TSX:CHEM.UN) attracts income investors primarily for its high dividend. The current 11.11% yield can deliver a significant amount of extra income. This $900 million firm, however, is well known in the specialty chemicals industry.

The business is highly diversified, and Chemtrade has a captive market not only in North America but in other parts of the world. Its facilities can produce large volumes of sulfuric acid and inorganic coagulants for various uses. Allied services include the processing of by-products and waste streams.

Chemtrade is worth the investment due to the following positive factors — significant market share, broad diversification, and revenue structure. The latter is the key because there are provisions in the long-term contracts that shield the company from commodity price fluctuations.

The track record is also remarkable. Chemtrade didn’t miss a dividend payment since 2003. The dividends can serve as your permanent income stream.

Cineplex (TSX:CGX), Canada’s famous entertainment brand, is one of the Dividend Aristocrats. Aside from its high 7.43% dividend, the stock has a dividend-growth streak of eight years.

There’s declining traffic at movie theatres due to video-streaming companies. Cineplex, however, is prepared to meet the challenge.  It’s no longer reliant on film entertainment or movie showing for revenues.

The media segment contributes through in-theatre advertising services and operations of digital signage networks. The Rec Room, Cineplex’s chain of entertainment restaurants, is providing solid support to the core business.

Next year, Cineplex is introducing a first-of-its-kind concept. The “Junxion” is a complex that will feature movie watching, dining, and entertainment in one place. Management expects this innovation to capture the fancy of moviegoers. This Canadian icon is dead-set on giving the growing streaming industry a run for its money.

Same storyline

The premise here is that AHIP, Chemtrade, and Cineplex can sustain the respective dividends in 10 years. If you have $375,000, invest $125,000 in each stock.

With the average yield of 10.32%, your money will grow to $1,001,322.10 in a decade. Your storyline can be the same as the successful millennial.

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

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

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.