When it comes to retirement, right now doesn’t seem like a great time. But in actuality, it’s a fantastic time if you’re looking to retire early in the next few years. Today, you can find TSX stocks that are at such low prices, and due to shoot back up, that they could definitely help you retire early — especially if you choose to reinvest those stocks.
Today, let’s look at the two stocks I’d choose to help you retire early. And what your returns could be in the next year or so.
NorthWest Healthcare REIT
Monthly income is going to be important if you’re going to retire early. You need a stock that’s going to help you basically create your own type of income now and in the future. Now that you don’t have a job, you’re going to count on that income, and then some.
That’s why a great option today is NorthWest Healthcare Properties REIT (TSX:NWH.UN). This monthly passive-income stock provides a 7.98% dividend yield as of writing. That’s $0.80 per share annually that you can look forward to coming out every month.
What’s great here is that NorthWest invests solely in healthcare properties. But that doesn’t mean it isn’t diversified. It invests in everything from parking garages to hospitals and everything in between. Plus, it’s still in growth mode, expanding on a global basis.
Right now, shares are down 22% in the last year, trading at just 8.59 times earnings. So, I would certainly consider investing in NorthWest REIT for some solid income if you want to retire early.
BMO stock
The banks don’t tend to do well during a recession. That’s why so many of them are down right now. The reason is that many Canadians are choosing not to start up loans, and who can blame them? There just isn’t the investment during a period of growth thanks to rising interest rates and inflation that remains quite high.
Yet Bank of Montreal (TSX:BMO) is still a strong option for those wanting stocks to help them retire early. It’s the oldest of all the Big Six banks, and yet right now, it is growing the most. This includes growth in the United States, where it purchased Bank of the West.
BMO stock therefore has a huge growth path ahead of it, all while providing a strong dividend yield at 4.36%. This comes to $5.72 per share annually! And while it’s trading at 6.6 times earnings right now, and with shares down 7.5% in the last year, it’s a great time to lock up long-term growth.
Bottom line
Let’s now look at where your shares in BMO stock and NorthWest stock could be in the next year. Here, I’m assuming that we see shares return to 52-week highs, and that you’ve made a $10,000 investment in each stock. So, we can look at those returns, including dividends.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | PORTFOLIO TOTAL | RETURNS |
| NWH.UN — today | $9.98 | 1,002 | $0.80 | $801.60 | monthly | $10,000 | |
| NWH.UN — highs | $14.42 | 1,002 | $0.80 | $801.60 | monthly | $14,448.84 | $5,250.44 |
| BMO — today | $131.87 | 76 | $5.72 | $434.72 | quarterly | $10,000 | |
| BMO — highs | $154.47 | 76 | $5.72 | $434.72 | quarterly | $11,739.72 | $2,174.44 |
Rather than waiting years to reach these levels and retire early, it may take just one to see a massive amount of growth. Plus, you can lock up dividends you may not see again from these stocks.
