Gen Z and Millennial Investors: 3 Canadian Stocks to See You to Retirement

Gen Z and millennial investors are some of the best at checking in on their finances, but are they still planning on creating a solid retirement portfolio?

think thought consider

Image source: Getty Images

Generation Z and Millennial investors have become one of the best generations when it comes to checking on their finances. According to a study by the Bank of Montreal, 62% of Gen Z investors checked in on their financial progress quarterly, and 54% of millennials did the same. Monthly, 41% of Gen Z checked in compared to 29% of millennial investors.

But checking doesn’t mean as much as meeting with a financial advisor. Luckily, the study showed 44% of Gen Z and 51% of millennials sought out professional advice. And that’s excellent, but it does leave about half of both generations relying on their own limited experience for investing.

The first thing a financial advisor will ask you is about your goals. And one of those goals is bound to be retirement, even in your twenties. After all, retirement is the ultimate financial independence, and meme stocks alone won’t get you there.

What will? These three Canadian stocks are certainly a strong start for Gen Z and millennial investors.

Dig into dividends

If you’re at all familiar with investing, then you likely already know the benefits of dividends. While it used to be thought that dividend stocks were for those in retirement, Gen Z and millennial investors have come around. It provides you with stable income while your stocks are growing, something we could all use.

But you want to make sure your shares and dividends continue to see returns. For that, I would recommend NorthWest Healthcare Properties REIT (TSX:NWH.UN). This real estate investment trust is in the health care sector, continuing to grow at a steady rate thanks to recent acquisitions. This has led to a solid dividend yield of 5.83% as of writing. Furthermore, it continued to climb even during the pandemic thanks to investing in essential properties. So this is one of the Canadian stocks that can last in your retirement portfolio for Gen Z and millennial investors.

Fund it with funds

Exchange-traded funds (ETF) are another way to bring in cash long term. This is perfect for a retirement portfolio, as it’s constantly watched by a management team. It’s like having an entire portfolio built for you. And one thing Gen Z and millennial investors will want in that portfolio is growth.

But I’m not saying you should buy a bunch of growth stocks. Instead, allow Vangaurd Growth ETF Portfolio (TSX:VGRO) to do it for you. The ETF focuses on creating long-term growth, and this comes not from stocks that jump, but stocks that provide stable growth from equity and fixed-income securities. Over the last five years alone it’s grown 26%. Nothing insane, but definitely strong and stable.

Safety in tech

Technology companies are actually some of the best options out there for long-term investors. But you have to be picky. Not any of these new companies will provide stable growth in the next few years. And some may be gone by retirement for Gen Z and millennial investors. Instead, you want tech stocks that are proven.

One of those would be Open Text (TSX:OTEX)(NASDAQ:OTEX). Open Text has moved from a data software company to a cloud-based cybersecurity marvel. It works with massive companies such as Amazon and Alphabet, providing cybersecurity through its cloud software. And it’s been around for decades, growing 284% in the last decade. These partnerships will see growth for years, and decades to come. Another perfect option among Canadian stocks for your retirement portfolio.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe owns NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends Alphabet (A shares), Alphabet (C shares), Amazon, NORTHWEST HEALTHCARE PPTYS REIT UNITS, and OPEN TEXT CORP.

More on Stocks for Beginners

TFSA and coins
Stocks for Beginners

How a BIG New TFSA Change Could Affect You in 2024

Canadians are in for a BIG surprise for the TFSA in 2024. Here's how TFSA changes could help you keep…

Read more »

Volatile market, stock volatility
Stocks for Beginners

3 Tips for Investing in a (Still) Volatile Market

These tips can help you through any volatile market. Focus on your long-term plan and follow along for even more…

Read more »

data analyze research
Stocks for Beginners

3 Common Tax Mistakes Canadian Investors Continue to Make

If you're reflecting on mistakes, these are the most likely ones you're making. And if fixing even one on this…

Read more »

Dividend Stocks

My 2 Favourite TSX Dividend Stocks for December 2023

These dividend stocks continue to see buy recommendations from analysts, and are the top choices in their sectors. So now…

Read more »

A stock price graph showing growth over time
Dividend Stocks

Up 8% in 3 Months, Is Fortis Stock a Buy Today?

Fortis stock (TSX:FTS) continued to show signs of recovery this fall, but as we enter a new year, is the…

Read more »

Man making notes on graphs and charts
Stocks for Beginners

Where to Invest $1,000 in December 2023

A $1,000 investment is enough to earn dividends or realize capital gains from two TSX stocks

Read more »

little girl in pilot costume playing and dreaming of flying over the sky
Stocks for Beginners

TFSA Investors: 3 Steps to Get Into Cross-Border Investing

Overseas trading can be scary. But if you follow these steps, you can certainly achieve far higher returns than just…

Read more »

question marks written reminders tickets
Dividend Stocks

Up 10% in a Month, Is Loblaw Stock a Buy?

Loblaw stock (TSX:L) has seen a strong increase in share price in the last month, but could more be on…

Read more »