The Motley Fool

Millennials: 3 Dividend Stocks to Hold Forever

Image source: Getty Images

Many millennials entered the workforce in a period of turbulence and transition after the 2007-2008 financial crisis. Those who started investing around this time or in the 2010s also experienced one of the longest bull markets in the modern era.

An economic downturn will not be welcomed by any generation. However, millennial investors also have a long-time horizon – a huge advantage going forward. Strong investments made today can build a bright future. Promising dividend stocks can offer capital growth and income to fuel your portfolio.

Today, I want to look at three dividend stocks that are worth snatching up today and holding onto for decades. Let’s jump in.

Millennials: Why this dividend stock is in a great position to start this decade

Millennials recently became the most populous demographic in North America, surpassing the baby boomers. This means that millennial consumer habits will play a huge role in shaping the future. The drive to vegetarianism and veganism has been led by younger generations. This me to the first dividend stock we’ll take a snapshot of.

Maple Leaf Foods (TSX:MFI) is a consumer protein company. Its shares have climbed 6.4% in 2020 as of close on July 23. Maple Leaf made the smart bet to invest in plant-based alternatives with its acquisition of Lightlife Foods in early 2017. BIS Research recently forecast that the global plant-based food and beverage market would post a compound annual growth rate (CAGR) of 13.82% from 2019 to 2024.

In Q1 2020, Maple Leaf achieved sales growth of 12.8%. Its Plant Protein Group achieved sales growth of 25.9%, which was in line with expectations. The company has set itself up as a direct competitor to Beyond Meat with the launch of Lightlife plant-based alternatives. Maple Leaf also offers a quarterly dividend of $0.16 per share, representing a 2.3% yield.

Don’t sleep on renewable energy

Millennials have established themselves as socially conscious investors over the past decade. For many in this demographic, profits and capital growth is not enough. They want to know they are investing in companies and causes with which they are socially and politically aligned. Earlier this month, I’d discussed how millennials can build a green energy portfolio.

Innergex Renewable (TSX:INE) is one of my favourite green energy dividend stocks on the TSX. Its stock has increased 34% in 2020 so far. Shares are up 55% year over year. Investors can expect to see its second-quarter 2020 results on August 4.

In Q1 2020, the company saw revenue rise 5% from the prior year to $132.1 million. Meanwhile, its production (MWh) increased to 1.68 million over 1.30 million in Q1 2019. On July 15, Innergex announced the acquisition of six operating wind farms in the United States. The stock currently offers a quarterly dividend of $0.18 per share. This represents a 3.2% yield.

This dividend stock needs to be in your portfolio

Jamieson Wellness is a stock that will benefit from shifting demographics. However, in this case it has grown due to an aging population. Natural health products and supplements have enjoyed a massive spike in interest, particularly among older generations who are becoming more health conscious. The COVID-19 pandemic has seen this dividend stock gain significant momentum in 2020.

Shares of Jamieson have increased 80% year-over-year as of close on July 23. The only drawback for millennials is that Jamieson looks overvalued right now.

Value investors may want to wait for a more attractive entry point. In any case, Jamieson is one stock that is worth holding onto for the long term.

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!

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Beyond Meat, Inc.

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.