Building a million-dollar retirement nest egg might seem daunting. However, it’s easier than you’d think. For example, putting $300 a month into an investment that returns 12% annually would grow into $1 million in about 30 years. While that’s slightly above the stock market’s average annual return of about 9.9% over the last three decades, many companies have delivered that level of return.
Three companies with a history of producing total annual returns of more than 12% are Brookfield Renewable (BEPC 0.80%) (BEP 1.08%), Enbridge (ENB -0.85%), and National Retail Properties (NNN 0.09%). While that past performance is no guarantee of future success, they have what it takes to continue delivering strong total returns. Because of that, a $300 monthly investment spread evenly across these stocks could make you a millionaire by retirement.
Powerful returns ahead
Brookfield Renewable has made its investors a lot of money over the years. The company has delivered 16% annualized total returns since its inception over two decades ago. At that pace, it could turn a $300 monthly investment into $1 million in about 24 years.
The renewable energy giant wants to continue enriching its investors in the future. It’s targeting to produce a 12% to 15% annualized total return over the long term. That would put it on pace to turn a $300 monthly investment into $1 million in 30 years or less.
The company certainly has the power to deliver strong total returns in the coming years. A quartet of drivers (inflation-driven contract rate increases, higher power prices, development projects, and acquisitions) should deliver more than 10% annual growth in its funds from operations (FFO) per share through at least 2027. That should enable the company to increase its 4%-yielding dividend at a 5% to 9% annual rate. This combination of income and earnings growth should help Brookfield deliver on its goal of producing strong total returns in the coming years.
Lots of fuel to continue growing
Read complete post here: