Investing is a long-term game, and the longer you play, the higher your chances of winning. This is why it’s always recommended that investors don’t wait until they have substantial sum stashed away to invest. It’s important that you start investing, even if it’s with a relatively small sum of $1,000. The sooner you start, the more time you’ll have to compound your wealth.
While investing isn’t a get-rich-quick scheme, good stocks can offer decent returns in durations as low as five years.
A commercial REIT
With a current dividend yield of 10.2%, BTB REIT has the potential to earn you $510 in dividends in five years. If it doesn’t slash its dividends in the future, it might earn your principal investment back in 10 years. BTB isn’t a Dividend Aristocrat, but it has been very consistent with its monthly payouts and has a stable payout ratio of 47.7%.
BTB focuses on commercial real estate and has a diversified portfolio of office, retail, and industrial properties. It may not be a very fast-growing stock, but on the bright side, it also doesn’t fluctuate much. Its gross profits and operating income seem stable enough to sustain its dividend payouts.
A mortgage company
First National Financial is one of the largest private mortgage lenders, apart from the banking institutions. The company offers mortgages to residential clients, commercial property holders, and mortgage brokers. It’s been around since 1988, and now has over $111 billion of mortgages under management. It generated a net income of $177 million in 2019 and has an attractive ROE of 32.4%.
As a stock, it offers both growth and dividends. It has been consistently increasing its monthly payouts since 2016 but hasn’t been awarded the title of Aristocrat yet. Currently, it’s trading at $29.3 per share, 23% down from its year-to-date value. This devaluation has also pushed the yield up to a juicy number of 6.64%. Before the crash, it had grown its market value by 73% in the past five years.
A storage company
StorageVault Canada is a venture capital stock. With a $1 billion market cap, it’s counted among the big players in the small market. It’s Canada’s largest self-storage company and owns over 73,000 units covering a space of about 8.1 million sq. ft. Its growth in the past five years has been explosive, and the company returned over 600% to its investors in capital gains.
The momentum has slowed down a bit in the past three years, but it might still have a lot of steady growth left. Currently, it’s trading at a 20% discount for the price of $3 per share. It also pays a dividend, but the yield right now is very low (0.36%).
Investors realize the importance of a well-balanced portfolio now more than ever. Buying stocks from different sectors, and balancing the growth and dividend potential of the portfolio are just two of the things you can do to minimize your losses in a market crash.