In Search of Retirement Income? Try These 5 Dividend Stocks

Retirees should target high-yield dividend stocks such as RioCan Real Estate Investment Trust (TSX:REI.UN), Hydro One Ltd. (TSX:H), and others.

The Motley Fool

Retirees who will be dependent on income in their portfolios should be targeting high-yield dividend stocks. Fortunately, there are many solid options available on the S&P/TSX Index. Let’s take a look at five today that can generate solid income for those entering or are already in retirement.

RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust (TSX:REI.UN) is the largest real estate investment trust in Canada. Shares of RioCan REIT have declined 9.7% in 2017 as of close on September 25. RioCan released its second-quarter results on August 3 and saw revenues increase 3.6% and operating income climb 8.5%. The stock has suffered due to fears surrounding the Canadian real estate market and the Bank of Canada moving quicker than expected on interest rate hikes.

The stock boasts a dividend of $0.12 per share, representing a dividend yield of 5.9%.

Hydro One Ltd.

Hydro One Ltd. (TSX:H) stock has fallen 3.8% in 2017 and 13.1% year over year. The company posted disappointing second-quarter results that saw earnings hurt by a mild summer and delay in the receipt of a transmission rate decision. Hydro One made headlines with the $6.7 billion acquisition of U.S. utility Avista Corp. which, when it closes, will net Hydro One several hundred thousand new customers.

Hydro One offers investors a wide economic moat and a dividend of $0.22 per share, representing a dividend yield of 3.9%.

Keg Royalties Income Fund

Shares of Keg Royalties Income Fund (TSX:KEG.UN) have dropped 4.9% in 2017 and 5.4% year over year. The stock tracks the performance of The Keg Restaurant + Bar chains. The company released its second-quarter results on August 9. Gross sales were up 6.3% and same-store sales climbed 6.5%. Restaurants have seen slower growth in 2017, but strong economic performance in Canada usually bodes well for consumer staples.

The Keg Royalties Income Fund boasts a dividend of $0.09 per share with a dividend yield of 5.5%.

Toronto-Dominion Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) stock has erupted in September — up 7% since releasing its third-quarter results on August 31. Shares have now almost totally recovered after a CBC story in March resulted in the largest single-day drop since 2009. Third-quarter results were the best of the big banks with a 13% increase in profit and net income growing 14% in both U.S. and Canadian retail banking divisions.

TD Bank offers a dividend of $0.60 per share, representing a dividend yield of 3.4%.

Sienna Senior Living Inc.

Sienna Senior Living Inc. (TSX:SIA) is a residential care company based in Canada. The stock has experienced impressive growth of 11% in 2017. The company released its second-quarter results on August 9. Net operating income climbed 2.8%, and it acquired a 68-suite retirement complex in Kingston, Ontario. As the Canadian population ages, Sienna Senior Living has the potential for big long-term growth.

The stock offers a dividend of $0.08 per share, representing a dividend yield of 5%.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned.

More on Investing

worry concern
Investing

Is it Safe to Own U.S. Stocks These Days?

Alphabet (NASDAQ:GOOG) is a robust value bet, even after soaring 11% on the back of its quantum computing chip news.

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

A Dividend Giant I’d Buy Over BCE Stock Right Now

The largest telecom company in Canada is brutally discounted, and the dividend yield is naturally up, but it's too risky…

Read more »

a man celebrates his good fortune with a disco ball and confetti
Dividend Stocks

Get Ready to Invest $7,000 in This Dividend Stock for New Year Passive Income

This is the year you get ahead, and maxing out your TFSA contribution is the best way to start.

Read more »

ways to boost income
Dividend Stocks

Buy 2,653 Shares of This Top Dividend Stock for $10K in Annual Passive Income

Enbridge is a blue-chip TSX dividend stock that offers shareholders a forward yield of 6%. Is it still a good…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Friday, December 13

Down 1.1% week to date, the TSX Composite Index seems on track to end its five-week winning streak.

Read more »

ETF stands for Exchange Traded Fund
Bank Stocks

A Canadian Bank ETF I’d Buy With $1,000 and Hold Forever

This unique Hamilton ETF gives you 1.25x leveraged exposure to Canada's Big Six bank stocks.

Read more »

a person looks out a window into a cityscape
Dividend Stocks

1 Marvellous Canadian Dividend Stock Down 11% to Buy and Hold Immediately

Buying up this dividend stock while it's down isn't just a smart move, it could make you even more passive…

Read more »

Blocks conceptualizing the Registered Retirement Savings Plan
Dividend Stocks

CPP at 70: Is it Enough if Invested in an RRSP?

Even if you wait to take out CPP at 70, it's simply not going to cut it during retirement. Which…

Read more »