Generation Z became very involved with investing during the pandemic. Growth stocks seemed to be everywhere, providing an entirely new generation with a reason to get into investing strategies. But now, the hen has come to roost.
Gen Z investors are now having to deal with the fallout from a period of insane growth. While what goes up doesn’t necessarily go down on the stock market, there is a period of correction when growth lasts too long.
Gen Z investors are probably looking for stability — hence, the popularity of passive-income stocks in recent months. And it makes sense! But passive income doesn’t mean stability. Today, I’m going to look at one solid TSX stock that offers a solid future. It’s so solid, it can provide you with four decades of income.
What to look for The easiest place to start when looking for a solid TSX stock is by digging into blue-chip companies. These companies are household names within their industry and have been around for decades already. This alone allows Gen Z investors with the opportunity to see the companies will be around for another few decades at least.
But you then want to start looking at what the company offers. Not every blue-chip company has a solid future. Take oil and gas for example. What was once a solid place to put your money has become stagnant and even declining in recent years. And with countries around the world wanting out of it, this is no longer an area where blue-chip companies exist, in my opinion.
So, where do you look?
Growth and income for decades You want companies that will continue to provide growth and income for decades. These companies tend to have diversified investments in multiple industries, providing Gen Z investors with solid growth but also solid dividends.
Yes, passive income will still come into play here. Blue-chip companies have so much cash on hand from decades of growth that they’re able to dish out returns with dividends. Even if those companies’ shares aren’t performing at peak prices right now.
One solid TSX stock to consider If you want a blue-chip company that has decades of growth behind it and decades ahead in an industry that will still be around, I would consider Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP).
Brookfield is managed by Brookfield Asset Management (TSX:BAMa), a company that’s been around since the 1880s. That is not a typo. Meanwhile, its renewable energy arm has been creating a diversified portfolio of renewable energy projects around the world. It offers offshore wind farms and solar fields — anything you can think of. And it’s only growing.
Yet right now, shares have come down from the excitement of January 2021, when renewable energy seemed like an exciting growth opportunity. There is now stability for Gen Z investors to get into. Meanwhile, you can lock in a 3.08% dividend yield that’s only going to grow, as the company continues to produce record revenue.
There you have it, Gen Z investors. This stock has grown 530% since coming on the market in 2003 and has decades more growth to come. So, lock it in and leave it alone for the future of your retirement income.
The post Gen Z Investors: 1 Solid TSX Stock to See You to Retirement appeared first on The Motley Fool Canada.
Fool contributor Amy Legate-Wolfe owns Brookfield Renewable Partners. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV.