Could These 2 Ultra-High Yield Stocks Help You Retire a Millionaire?

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Written by Demetris Afxentiou at The Motley Fool Canada

Most investors have the dream of being able to retire a millionaire. And while that’s a tall feat, it’s not entirely impossible. The market provides plenty of options to help reach that goal, including some stellar ultra-high yield stocks.

Here’s a duo of options to help you retire a millionaire.

Feed this stock today, get massive income tomorrow

Few investors can disagree that Enbridge (TSX:ENB) is a superb long-term investment, particularly for those looking for a stock that can help reach the goal of retiring a millionaire.

Enbridge generates the bulk of its revenue from its incredibly defensive, and very lucrative pipeline segments. By way of example, Enbridge transports nearly one-third of all North American crude and one-fifth of the natural gas needs of the U.S. market.

Additionally, Enbridge also operates a growing renewable energy network. Enbridge has invested $8 billion into the segment over the past two decades, which today includes wind, solar, and hydro elements in Europe and North America.

As an income stock, Enbridge offers a quarterly dividend to investors. The yield on that dividend currently works out to an impressive 7.67%, making it one of the better-paying options on the market.

For investors looking to retire a millionaire, investing early and often can help them reach that goal. Those investors that drop $30,000 in Enbridge (as part of a larger, well-diversified portfolio) can expect a first-year income of approximately $2,300.

Oh, and prospective investors should keep in mind that Enbridge also provides investors with a generous annual bump to that dividend. That practice has continued for 28 consecutive years without fail.

Given the current stock price of just over $46, that’s enough to acquire 49 additional shares through reinvestments. Throw in some additional investment into the stock over a longer period, as well as dividend growth, and Enbridge can quickly become a key asset in helping you retire a millionaire.

Here’s a defensive gem that has paid dividends for over a century

Finding the right mix of investments to help you retire a millionaire takes time. And one of the best tools in an investor’s arsenal to help accomplish that feat is time. That’s precisely why another great stock to consider investing in now for long-term growth and income is BCE (TSX:BCE).

BCE is the largest telecom in Canada, offering wireless, wireline, Internet, and TV services to subscribers.. Telcoms are incredibly defensive investments, and that defensive appeal has only increased since the pandemic started.

Additionally, demand for new smartphones, which have an insatiable appetite for data, continues to drive mobile usage and by extension, revenues higher. By way of example, in the most recent quarterly update, BCE surpassed 10 million mobile subscribers posting revenue gains of 4.4%. The segment also saw the highest postpaid net activations of 111,282 devices in 18 years.

Turning to income, BCE has provided investors with a generous quarterly dividend for well over a century. As of the time of writing, the yield on that dividend works out to 6.96%.

Using that same $30,000 example from above, investors can expect a first-year income of just over $2,000. And like Enbridge, BCE provides annual bumps to that dividend, which can be reinvested to accelerate any future income stream.

Prospective investors should also note that despite that defensive appeal and juicy dividend, BCE currently trades at a discount. That drop comes as a result of rising interest rates and overall market volatility.

As of the time of writing, BCE trades down over 12% in the trailing 12-month period. This makes it an ideal buy for longer-term investors.

Final thoughts: Can you retire a millionaire?

All investments, even the most defensive, carry some risk. That’s why diversifying your portfolio is so important. Fortunately, both Enbridge and BCE offer defensive appeal, growth potential, and a generous income.

In my opinion, one or both stocks are great additions to any well-diversified portfolio. For those investors with longer timelines, buying these stocks today can help accelerate your portfolio and help you retire a millionaire.

Buy them, hold them, and let them grow.

The post Could These 2 Ultra-High Yield Stocks Help You Retire a Millionaire? appeared first on The Motley Fool Canada.

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Fool contributor Demetris Afxentiou has positions in BCE and Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.