5 High-Yield Stocks to Fund Your Retirement

Altagas Ltd. (TSX:ALA) is among five high-yielding stocks that provide stability and dividend-growth potential.

Karen Thomas, MSc, CFA

Karen is a stock market enthusiast focused on uncovering those stocks that she believes the market has mispriced. She does this through fundamental and quantitative analysis of companies and their industries, as well as a study of future opportunities and trends. She holds a Masters degree in Finance, the CFA designation, and has over 20 years of experience in the investment management industry. Having worked at a major pension fund, as well as two leading mutual fund firms as an analyst and portfolio manager, she has solid investing expertise which she aims to share with her readers.

Published February 8, 2018 7:35 am EST

For investors who are retired or nearing retirement, it is a never-ending quest to find those stocks that not only pay a good dividend, but that are also dependable, reliable, and are expecting future growth.

Here are five high-yield stocks that have all of these characteristics and that would make great additions to your portfolio.

Inter Pipeline Ltd. (TSX:IPL)

This is an energy infrastructure company that owns and operates oil pipelines and storage facilities, and natural gas liquid processing (NGL) facilities.

The company has a strong history of dividend growth and stability, with 14 years of dividend increases and a five-year CAGR of 9%.

Currently yielding 7.2%, this stock will provide a good source of income and stability for investors.

Altagas Ltd. (TSX: ALA)

Currently yielding 8% and experiencing financial and operational momentum, Altagas shares are undervalued, in my view, due largely to the company’s recent acquisition and uncertainties regarding financing and approvals.

But at the end of the day, investors can look forward to the WGL acquisition of high-quality assets and market position to bring Altagas many growth opportunities as well as significant earnings and cash flow accretion.

TransAlta Renewables Inc. (TSX: RNW)

With 18 wind facilities across Canada and the U.S., TransAlta Renewables is Canada’s largest wind power generator.

With a dividend yield of 7.6%, the company offers investors a high yield that is supported by quality assets that are fully contracted with an average term of 15 years.

Going forward, the company will continue to see growth from more drop-down transactions from Transalta Corporation, and from acquisitions. This should support dividend growth as well.

NorthWest Health Prop Real Est Inv Trust (TSX:NWH.UN)

With a current dividend yield of 7.3%, Northwest is a great addition to your portfolio for its exposure to one of the biggest demographic trends, the aging population, and for its high-quality global, diversified portfolio of healthcare real estate properties.

Healthcare properties generally have stable occupancies and long-term leases, which make the underlying REIT a defensive one that is attractive for long-term investors.

And the shares are trading at just over book value, so they present a great opportunity to establish a position.

Northland Power Inc. (TSX: NPI)

Lastly, Northland Power is a strong renewables energy provider, with a dividend yield of 5.1%.

This independent power producer is dedicated to developing, building, owning, and operating facilities in Canada and internationally.

Two things are especially worth a mention here.

First, Northland’s management owns approximately 35% of shares outstanding, so management’s interests are aligned with shareholders. Second, 98% of the company’s revenues are from long-term power contracts, so there is good stability in the company’s financial results.

As for growth going forward, Northland is looking to Taiwan, which plans to invest heavily in offshore wind fixed-term contracts.

So, there you have it. These are five stocks to fund your retirement, while you enjoy a good night’s sleep.