These stocks can boost your chances of a million-dollar retirement.
Multiple routes can lead to a million-dollar retirement fund. Consider this: by investing $300 every month into an asset that yields 10% annually, you could touch the million-dollar mark in approximately 34 years. This target is quite attainable, especially when you think that the return is slightly less than the S&P 500’s average annual performance over the past three decades.
Speed up your journey to a million by raising your monthly contributions or by exploring investments with higher returns. Stocks like Brookfield Renewable (NYSE: BEPC) (NYSE: BEP), Blackstone (NYSE: BX), and Mid-America Apartment Communities (NYSE: MAA) have shown impressive returns historically, and their upward trajectory looks promising.
Impressive Yield
Over its 20-year history, Brookfield Renewable Partners has achieved a remarkable 16% average annualized total return. As a renewable energy powerhouse, the firm has amplified its earnings substantially through acquiring and expanding revenue-generating renewable assets. This approach has allowed it to amplify its generous dividend (currently at 4.7%) at a 6% compound annual growth rate.
Positioned at the forefront of renewable energy, Brookfield is poised to benefit from the rising demand for eco-friendly energy solutions. With a considerable number of projects in the pipeline, the company is set for robust growth. Additionally, as power prices rise and Brookfield scales up, it’s expecting to elevate its funds from operations (FFO) by over 10% yearly until at least 2027.
Given these projections, Brookfield’s dividend should climb between 5% to 9% annually, and the company’s consistent income and earnings expansion should yield total returns between 12% to 15% in the long run.
Untapped Potential
Since its IPO in 2007, Blackstone has secured a 12.9% average annual return. Capitalizing on the increasing interest in alternative investments, this top-tier alternative asset manager has grown its assets under management (AUM) to a staggering $1 trillion. Blackstone’s knack for offering unique investment returns and innovative products has supercharged its revenue streams. Over the past decade, it’s boosted its distributable earnings by over 20% each year.
With more investors leaning into alternatives, Blackstone sees high-net-worth individuals as a goldmine. This segment only invests around 1% to 2% of their assets in alternatives, unlike institutional investors who invest between 25% to 30%. This represents a massive $85 trillion opportunity that Blackstone is keen to harness by offering tailored investment products.
Riding the Migration Wave
Since its 1994 IPO, Mid-America Apartment Communities (MAA) has logged a 12.7% average annual total return, capitalizing on the increasing demand for rental properties.
Benefiting from the migration trend towards sunnier, cost-effective cities in the Sunbelt region, MAA now boasts over 100,000 apartment homes. This migration is bolstering housing demand, ensuring high apartment occupancy and driving rent growth.
With the additional revenue from increasing rents, MAA is also in a prime position to establish new apartment communities, supported by its robust financial foundation.
With the ongoing housing shortage, MAA’s twin growth engines will likely persist, driving its FFO up and enabling it to upscale its dividend.
The Path to Robust Returns
With their impressive histories of stellar returns, Brookfield Renewable, Blackstone, and MAA are well-poised to continue their ascent. Their focus on tapping into massive market opportunities means they’re likely to further grow their earnings and dividends. This trajectory could pave the way for their investors to realize their dream of a million-dollar retirement.
In the investment world, the journey to a comfortable retirement nest egg isn’t about quick wins, but smart, long-term choices. Brookfield Renewable, Blackstone, and MAA epitomize the kind of investment vehicles that promise not just present value but future growth. As these companies harness untapped opportunities and capitalize on prevailing trends, they offer investors a viable pathway to a prosperous retirement. For those aiming to retire as millionaires, it might be time to consider these stocks as fundamental pillars of a robust investment portfolio.
