Yahoo Finance 3 TSX Stocks That Can Turn Retirement Dreams Into Reality
Written by Amy Legate-Wolfe at The Motley Fool Canada
Did you know that a recent study found nearly 70% of young investors are more focused on building short-term savings than planning for retirement? While it’s great to have an emergency fund, this trend shows that many are missing out on the benefits of long-term investing. The power of compounding works best when you start early, so those who delay their retirement planning might find themselves scrambling later to catch up.
It’s easy to get caught up in the here and now, especially when things like travel and new gadgets are tempting. But setting aside even a small portion of your income for retirement can make a huge difference in the future. By balancing short-term goals with long-term investing, young investors can ensure they’re not only prepared for today’s surprises but also set for a comfortable retirement.
First National
If you’re a young investor with dreams of a comfortable retirement, First National Financial (TSX:FN) could be your ticket to making those dreams a reality. With a strong presence in Canada’s mortgage market, First National has consistently demonstrated its ability to grow and maintain solid profitability, even in competitive environments. Its impressive market cap of $2.24 billion and a forward price-to-earnings (P/E) ratio of 10.41 at writing highlight the company’s robust financial health. While its 6.57% dividend yield as of writing offers a steady stream of income—a perfect match for anyone looking to build wealth over the long term.
What makes First National particularly attractive for young investors is its disciplined approach to growth and revenue generation. With $148.2 billion in mortgages under administration, up 8% from last year, and a portfolio that continues to deliver reliable returns, this company is set up to provide both stability and growth potential. By investing in First National, you’re not just buying a stock. You’re securing a partner in your financial journey—one that’s committed to helping you achieve those retirement goals with ease and confidence.
Polaris
Polaris Renewable Energy (TSX:PIF) offers young investors a compelling opportunity to power their retirement dreams with a strong, sustainable investment. Specializing in renewable energy projects across Latin America, Polaris boasts a diversified portfolio that includes geothermal, hydroelectric, and solar assets. With a market cap of $247.46 million and a forward P/E of 18.98, this company is not just about green energy; it’s about green returns. Polaris’s commitment to maintaining a solid dividend yield, currently at 7.02%, means you can enjoy a steady income stream while watching your investment grow.
What sets Polaris apart is its ability to navigate challenging market conditions while still delivering value to its shareholders. Despite some temporary dips in production due to maintenance, the company remains on track with its long-term goals. Polaris is now trading at a discount. It offers a great entry point for those looking to invest in a company with a strong balance sheet and a focus on sustainability. For young investors planning for the future, Polaris provides a blend of growth potential and reliable income—exactly what you need to turn your retirement dreams into reality.
TELUS
For young investors eyeing a reliable path to their retirement dreams, TELUS (TSX:T) offers a compelling opportunity. With a market cap of over $32 billion and a forward annual dividend yield of 7.21%, TELUS stands out as a stable, income-generating asset. The company’s consistent growth in its customer base, particularly in mobile and internet services, ensures that your investment has a strong foundation. The recent addition of 332,000 net customer connections in the second quarter of 2024 highlights TELUS’s ability to keep pace with the ever-evolving tech landscape. Including robust gains in mobile phones and connected devices.
But it’s not just about stability. TELUS is also about growth. The company’s strategic investments in areas like 5G technology, healthcare services through TELUS Health, and innovative agricultural solutions ensure that it remains at the forefront of digital transformation. Plus, with a solid history of dividend payments and a commitment to shareholder returns, TELUS offers a reliable income stream. One that can help you steadily build wealth over time. This makes those retirement dreams not just a possibility but a reality.
The post 3 TSX Stocks That Can Turn Retirement Dreams Into Reality appeared first on The Motley Fool Canada.
What Stocks Should You Add to Your Retirement Portfolio?
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now. The 10 stocks that made the cut could produce monster returns in the coming years, potentially setting you up for a more prosperous retirement.
Consider when "the eBay of Latin America," MercadoLibre, made this list on January 8, 2014 ... if you invested $1,000 at the time of our recommendation, you’d have $18,111.92.*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 27 percentage points since 2013*.
See the 10 stocks * Returns as of 5/22/24
More reading
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Polaris Renewable Energy. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.
2024
