3 growth and dividend stocks for a Rolls Royce retirement

Now is the best time to start generating as much wealth as possible before you reach your golden years.

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We’re all going to retire…

Some will have it easy and some, unfortunately, will have it more modestly. Apart from earning a big salary through most of your career years, probably the biggest deciding factor as to which one you may have is how much you save or invest up until then.

It’s a sobering thought, but starting to invest now is your best chance of generating as much wealth as possible.

And to have the “Rolls Royce”-style retirement that everyone would love to have, you need a strong mix of stocks giving steady dividend income and very healthy growth. Here are three stocks that could help you set the pace for the next 20 or 30 years.

1) ResMed Inc. (CHESS) (ASX: RMD)

The medical respiratory and breathing aid device developer has steadily grown revenue and earnings over the past 10 years. Operating worldwide in big healthcare markets like the US, the demand from the rise in respiratory diseases and even sleep apnea will keep on powering expansion. The stock has a 1.8% dividend yield, but this is a fast grower for your portfolio.

2) Flight Centre Travel Group Ltd (ASX: FLT)

Staying with the overseas growth theme, the well known travel agency and holiday booking company has established offices in many of the major travel hubs in the US. It has made recent acquisitions in the UK and Asia and even started a joint venture with a Vietnamese tour company that will open a new income stream outside of pure travel and accommodation bookings.

It is especially developing more corporate travel business in all of these regions to maintain higher earnings margins and business traffic volumes. Offering a 3.1% yield, some analyst forecasts estimate earnings to rise an average 9% annually over the next two years. This stock is a good combination of dividend income and growth.

3) Macquarie Group Ltd (ASX: MQG)

The investment bank has extensive international business and is currently expanding into the Australian residential mortgage industry to take advantage of the growing housing market. Investing in and partnering up with mortgage-broking companies, it is trying to take market share from the Big Four banks, which control the clear majority of the market. Macquarie Group thrives and generates impressive earnings when financial markets are rising. It offers a healthy 4.6% yield partially franked.

Wondering where you should invest $1,000 right now?

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*Returns as of January 12th 2022

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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