Early retirement is possible if we manage our investments carefully throughout our careers.
Many of us dream about the day we can live at the cottage for the summer months and then head somewhere warm to avoid the cold winter. Wouldn’t it be great if we could start living this life at the age of 60, 55, or maybe even 50?
Paying down debt and living within our means are core components of the early-retirement formula. Investing in solid companies with increasing dividends and consistent capital appreciation is also important.
Here are three dividend stocks investors can likely count on to help them retire early.
1. Telus
As Canada’s second-largest telecommunications company, Telus (TSX: T)(NYSE: TU) has grown from its origins in British Columbia to become a powerful nationwide competitor.
Q1 2014 results came in strong with Telus showing continued growth across all of its business units. Basic earnings per share were up almost 9%. The Telus TV subscriber base increased 18%, and high-speed Internet connections increased by 5.5%. The company also added 48,000 net new wireless postpaid customers.
The company is known for delivering great customer service and continues to invest in advanced broadband network technologies.
Telus has increased its dividend seven times in the past three years. The current payout of $1.52 currently yields 4%. The stock is up a solid 140% over the past five years.
2. TransCanada Corp.
Moving natural gas through pipelines across Canada, the U.S., and Mexico may not sound like an exciting business but TransCanada Corp (TSX: TRP)(NYSE: TRP) is very good at it. The company moves a staggering 15 billion cubic feet (Bcf) of natural gas every day.
Even with its controversial Keystone XL pipeline project still on hold, TransCanada continues to deliver excellent results and is moving forward on a number of other pipeline projects including several in Mexico.
TransCanada also has a mix of power generation projects including natural gas, nuclear, wind, and hydro assets.
The company has increased its dividend every year for the past 10 years. The current $1.92 payout yields 3.5%. TransCanada’s share price is up a respectable 82% over the past five years.
3. Bank of Nova Scotia
Investing in any of Canada’s big banks has been a great long-term decision and will continue to be.
Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) is Canada’s international lender. The company has extensive assets in Latin America and is expanding into Asia. While the bank still gets a significant portion of its revenue from its Canadian retail operations, Bank of Nova Scotia is well positioned to benefit from growth in its core international markets: Mexico, Colombia, Peru and Chile.
The company reported record Q1 2014 earnings of $1.8 billion that were 14% higher than the same period one year earlier.
The stock is up a healthy 60% over the past five years and investors can expect consistent dividend increases moving forward. The current dividend of $2.56 yields 3.5%.
