This Woman Retired at Age 56 — and Left Canada to Live in Belize

Exchange Income Corporation (TSX:EIF), Pinnacle Renewable Energy Inc. (TSX:PL), and Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) are must own stocks if you want to build wealth, retire early, and live a life of adventure in a faraway island.

| More on:

If you want to live an adventurous and not an ordinary life, you can relocate to a top retirement destination. Canadian national Marlene Houghton was able to do that at age 56. In 2013, Ms. Houghton moved to Belize, a beautiful, laid-back small island, where she has everything she wants for only $50,000 a year.

Living a life of adventure is possible if you start investing in stocks now. Your portfolio should consist of dividend stocks such as Exchange Income (TSX:EIF), Pinnacle Renewable Energy (TSX:PL), and Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) or CIBC.

With the three stocks, you can accumulate just as much if you decide to make the same move as Ms. Houghton.

Dividend rock star

Exchange Income is ideal for high-income seekers; this $1.22 billion company is the top choice in the aerospace industry because the industrials stock pays a high 6.0% dividend.

The Canadian firm acquires income-generating companies in the Aerospace & Aviation and Manufacturing sector. Its success rate in making meaningful acquisitions is close to 100%. Because of its remarkable success, Exchange Income was able to raise dividends for 13 straight years.

The company’s effort to grow its portfolio of diversified niche operations is still ongoing. Every addition would mean reliable dividend to shareholders as well as dividend growth in the coming years.

Unique electricity generator

Pinnacle is playing a crucial role in the renewable energy sector. It’s not an oil and gas E&P company, but rather a manufacturer, distributor, and seller of industrial wood pellets. From these wood pellets, the company produces renewable fuel for electricity generation.

The clients of Pinnacle are utility companies and those with large-scale power generators. These customers use Pinnacle’s industrial wood pellets to produce renewable and base load power. The company also provide carbon-neutral products for residential customers.

You can own the stock for less than $11.00 today and receive a 6.2% dividend. With that yield from this three-decade-old firm, your investment could double in less than 12 years.

Bank stock with the highest dividend

Everybody knows that the top Canadian banks are the safest investments, so it’s good to invest in the bank stock that pays the highest dividend in the sector. CIBC is a must-have stock if you have plans of migrating to an idyllic island. The bank stock currently yields 5.4%.

In 24 years, your total return could be 1,666.9%, including the reinvestment of dividends. The figure is based on historical data and an investment of $10,000. To some investors, CIBC is the number one way to retire at 50 and enjoy life to the fullest.

CIBC is also the top stock of retirees and dividend investors because it’s a low-risk, high-return investment. Your money is safe and without the risk of losing even a small fraction of it.

It’s your turn

Sometimes a dream remains a dream due to lack of financial resources to make it come true. Marlene Houghton, a former British Columbian resident, was able to fulfill her dream of living in the Caribbean because she had the money to relocate on a distant island.

A portfolio basket that combines Exchange Income, Pinnacle, and CIBC could help you create wealth and bring you closer to living the same life as Ms. Houghton.

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. Pinnacle Renewable Energy is a recommendation of Dividend Investor Canada.

More on Energy Stocks

man touches brain to show a good idea
Energy Stocks

1 No-Brainer Energy Stock to Buy With $500 Right Now

Should you buy a cyclical energy stock at its decade-high? Probably not. But read this before you make a decision.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Top Canadian Renewable Energy Stocks to Buy Now

Here are two top renewable energy stocks long-term investors can put in their portfolios and forget about for a decade…

Read more »

oil and gas pipeline
Energy Stocks

Where Will Enbridge Stock Be in 3 Years?

After 29 straight years of increasing its dividend and a current yield of 6%, here's why Enbridge is one of…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

Is Enbridge Stock a Buy, Sell, or Hold for 2025?

Enbridge stock just hit a multi-year high.

Read more »

oil pump jack under night sky
Energy Stocks

Where Will CNQ Stock Be in 3 Years?

Here’s why CNQ stock could continue to outperform the broader market by a huge margin over the next three years.

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Is Imperial Oil Stock a Buy, Sell, or Hold for 2025?

Valued at a market cap of $55 billion, Imperial Oil pays shareholders a growing dividend yield of 2.4%. Is the…

Read more »

Pumpjack in Alberta Canada
Energy Stocks

Where Will Imperial Oil Stock Be in 1 Year?

Imperial Oil is a TSX energy stock that has delivered market-thumping returns to shareholders over the last two decades.

Read more »