Investing in These Dividend Stocks Could Make You a Millionaire Retiree

You can build a million-dollar retirement portfolio by investing in dividend-paying stocks such as Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP).

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Investing in dividend stocks is a proven way to save for retirement. Companies that pay regular dividends help aggressive savers to multiply their wealth quickly, as they re-invest their income back into the portfolio and reap the benefits of compounding.

If you are young and can spare a good chunk of your income for your retirement, you are in an ideal position to build a million-dollar retirement portfolio that’s big enough for you to enjoy your golden years.

Young savers have a fantastic saving tool, which has been designed to help maximize savings and get you the best tax benefits.

The Tax-Free Saving Account (TFSA) has many advantages for young savers. It allows investments to compound tax free, and you can cash out your TFSA without incurring a tax liability.

Through your TFSA, you can start investing in safe dividend stocks that you plan to buy and hold for a long time.  

Here are some of the top dividend-paying stocks available to Canadian investors that could help make your investments grow fast.


Power and gas utilities are among the top dividend-paying companies in Canada. And in this space, I like Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP).

Both of these companies are involved in building global energy infrastructure in diversified jurisdictions.

Their revenues mostly come from long-term contracts which provide stability and growth to their income. This is what retirees need, because they are not interested in short-term gains. 

Instead, retirees want a long-term track record of paying dividends and growing them over time. Investors who’d bought Brookfield stocks in 2009, for example, have seen their $15,000 grown to ~$70,000 today.


Canadian financial institutions are another avenue to earn stable dividend income on your dividend portfolio. Canadian lenders have a strong local presence and expanding global footprint. This combination helps them to pay hefty dividends to their shareholders.

Canadian banks distribute 40-50% of their income, on average, in dividends — a very strong incentive for retirees to keep invested.

Toronto-Dominion Bank (TSX:TD)(NYSE:TD), for example, is one of the best stocks among large Canadian lenders. TD has become an eighth-largest U.S. bank through its acquisitions. With a dominant market share in Canada, it is well positioned to grow its payout.

In the past 15 years, the lender has provided a 12% annualized total return. And $10,000 invested in TD is now worth more than $30,000.


I also like having a couple of top telecom stocks due to their consistent history of paying dividends. BCE Inc. (TSX:BCE)(NYSE:BCE), Canada’s largest telecom operator, has been sending dividend cheques to income investors and retirees for more than a century.

Telus Corporation (TSX:T)(NYSE:TU) is relatively young player, but it also pays regular dividends which are growing each year.

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 Haris Anwar has no position in the companies mentioned. The Motley Fool owns shares of Enbridge. Brookfield Infrastructure Partners and Enbridge are recommendations of Stock Advisor Canada.

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