Investors who have hit or are nearing retirement are typically faced with difficult decisions regarding their portfolios. Now that you are beginning to dip into the nest egg you have earned over decades, it is prudent to establish streams of income rather than to chase riskier assets that may be geared up for long-term gains.
We will take a look at some of the top dividend stocks Canada has to offer. It is important that retirees choose companies with wide moats to add extra stability to their portfolios.
Fortis Inc.
Fortis Inc. (TSX:FTS)(NYSE:FTS) is a Canadian utility company that operates in North and Central America as well as the Caribbean. The company released its second-quarter results on July 28. Net earnings increased to $257 million, or $0.61 per share, demonstrating very impressive growth compared to the $107 million, or $0.38 per share, in Q2 2016. The company has more than doubled its net earnings year to date, posting $551 million compared to $269 million in the first half of 2016.
Cash flow was up 28% from Q2 2016 to $1.2 billion. The company has a wide economic moat, and the stock boasts a dividend of $0.40 per share, representing a dividend yield of 3.6%.
BCE Inc.
BCE Inc. (TSX:BCE)(NYSE:BCE) is a Canadian telecommunications giant and one of the largest corporations in Canada by revenue. The company released its second-quarter results on August 3. Profits dipped to $762 million from $778 million in Q2 2016. BCE is one of several telecommunications companies that have faced a changing environment and are battling new trends. Consumers are starting to ditch conventional cable at a break-neck pace, and companies like BCE are focusing on obtaining wireless subscribers and modern offerings to retain customers.
A 6.7% increase in operating revenue was driven by growth in Bell Wireless and Bell Wireline as well as the acquisition of Manitoba Telecom Services Inc. The stock offers a dividend of $0.72 per share — a dividend yield of 4.5% at offering.
Toronto-Dominion Bank
As of close on September 15, Toronto-Dominion Bank (TSX:TD)(NYSE:TD) stock has risen almost 4% since releasing its third-quarter results on August 31. TD Bank concluded earnings season for the Canadian banks with perhaps the most impressive results of the entire crop. Profit shot up 17% to $2.77 billion from the third quarter of 2016. Retail banking saw big gains in the Canadian and U.S. retail sector, both moving up 14%.
TD Bank stock boasts a dividend of $0.60 per share and a dividend yield of 3.6%. TD Bank has the largest U.S. footprint out of any other Canadian bank, providing attractive diversification, even as the Canadian economy strengthens. Rising interest rates should boost net margins, and the bank may also receive a huge boost from the tax policies expected to be pushed by the Trump administration. TD Bank is a great option for any investor seeking income, stability, and the possibility to double capital growth considering its upside heading into 2018.
