Millennials desire affluence and are generally mindful of their financial situation. Younger Canadians are also economically optimistic but are fearful of investing. The COVID-19 pandemic gives them all the more reason to stay clear of stocks.
However, the next market crash presents an opportunity. You can set aside the aversion and prepare to get rich. Dividend stocks such as Rogers Sugar (TSX:RSI) and NorthWest Healthcare Properties (TSX:NWH.UN) are among the highest dividend-payers ideal for frugal investors. It won’t require considerable capital to make a substantial windfall.
Many millennials are supplementing their regular employment income with gig income. But you can sweeten the pot and create a crisis fund by investing in a consumer-defensive stock like Rogers Sugar. For only $4.74 per share, you partake of the lucrative 7.58% dividend. The stock is holding up well in 2020, although another market correction could push the price lower.
Imagine earning $189.50 quarterly from a $10,000 investment. Since you have the luxury of time, your money will double to $20,764.11 in a 10-year holding period. Income-wise, Rogers Sugars has never been in the red. The average net income in the last three years is $20.88 million.
Sugar is a low-growth business, but since it’s a staple product and essential in everyday life, it is stable. Similarly, Rogers Sugar operates in a duopoly, so there’s hardly a competition. This $493.1million sugar and maple producer has been consistently paying dividends for 10 years.
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NorthWest Healthcare is an income-producing real estate stock. This $1.91 billion real estate investment trust (REIT) offers would-be investors a market-beating 7.33% dividend. A $10,000 investment will generate a $733 in passive income. This REIT operates in a niche and vital sector, making it excellent for a long-term hold.
At the current price of $10.87 per share, you’re purchasing this REIT at a discount. Northwest shares were trading at $13.25 five months ago. A pullback can happen should the market crash again.
Apart from Canada, the operations are global (Australia, Brazil, Germany, and New Zealand), and the owned properties are hospitals, clinics and medical office buildings. Long-term leases cover the joint ventures or partnerships with leading operators of these high-quality healthcare real estate infrastructures.
As an investor, you can gain instant access to a diversified portfolio of 175 income-producing properties while earning income on the side as a quasi-landlord. In the home country, NorthWest Healthcare boasts of the most extensive private-sector collection of healthcare facilities.
The 2020 pandemic is not an interruption, but a prompting for millennials to increase their financial confidence and do away with investment jitters. You can ride out the health crisis and, at the same time, put your money to work.
There will be a variety of challenging economic factors post-pandemic, so it would be best to look after one’s financial health. Millennials have the advantage of time versus the older generations.
You can save as much for retirement and build wealth to attain financial security and live comfortably.
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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 NORTHWEST HEALTHCARE PPTYS REIT UNITS.