Picking the right investment mix for your portfolio can make the difference between being completely prepared for the golden years of retirement or not having the funds to stop working.
Fortunately, the market gives us many investment opportunities that can help make those retirement years as comfortable as possible. Here are several investments that can help kick-start your portfolio into gear.
Algonquin Power & Utilities Corp. (TSX: AQN)(NYSE: AQN) is an excellent investment option for income-seeking investors. As a utility investment, Algonquin offers investors a very appetizing 5.19% yield, but looking beyond that yield, Algonquin appeals to investors.
Unlike many other traditional utilities, Algonquin already has a sizable renewable energy portfolio with hydro, thermal, solar, and wind elements through its U.S.-based subsidiary, Liberty Power. This provides an advantage over its peers that are still primarily focused on fossil fuel-burning facilities or limited to just domestic markets.
Algonquin is targeting 10% growth to its dividend over the next few years.
Enbridge Inc. (TSX: ENB)(NYSE: ENB) operates one of the most intriguing businesses in the market. For those that are unaware of Enbridge’s business, the company is the largest energy transportation and distribution company on the continent. The massive pipeline network that Enbridge owns operates like a toll network, ferrying oil and natural gas to points across the continent while charging flat rates.
It’s a lucrative business that is constantly growing. The company also has over $20 billion in projects that are in a shovel-ready state as well as over $40 billion worth of projects that are in various states of review and construction.
Enbridge has been prominent in the minds of investors lately, as the company’s debt levels have increased greatly and saw a credit-rating drop as a result of its acquisition of Spectra Energy.
Despite that drop, the company remains an incredible buying opportunity, as long-term prospects remain strong, and recent weakness in the stock has created a buying opportunity for long-term investors.
Enbridge currently trades at just over $42 and offers investors an incredible 6.35% yield.
Rogers Communications Inc. (TSX: RCI.B)(NYSE: RCI) is one the largest telecoms in the country and another great addition to any portfolio. Utilities have historically made great investments, owing to their stable revenue streams, mostly fixed costs, and handsome dividend payments.
For the most part, that still holds true, with Rogers’s wireless segment leading the way. Wireless connections are becoming increasingly more important in our daily lives, as devices that were just used for communications just a decade ago now cater to an increased number of uses and applications, replacing everything from alarm clocks and calendars to cameras and portable gaming devices.
Rogers realized this potential and placed an emphasis on growing its mobile business, reducing churn, and improving customer service. Rogers’s efforts are working, as the company saw record-breaking growth from its wireless segment and reduced churn to levels not seen in over a decade.
Rogers offers a quarterly dividend that pays out a respectable 3.13%.
No mention of a portfolio to coast into retirement would be complete without mentioning one or more of Canada’s big banks. Toronto-Dominion Bank (TSX: TD)(NYSE: TD) in particular has emerged as a great income stock for long-term investors, owing to its quarterly dividend with a yield of 3.54%, which it has paid to shareholders for over a century, and to its sprawling U.S.-based business, which now has more branches in the U.S. than in Canada.
That U.S. business now includes branches in 15 different states as well as in Washington, D.C., with no signs of slowing down, as the segment reported year-over-year growth of 24% in the most recent quarter.
One interesting aspect regarding TD is the bank’s positioning within the U.S., which is likely a reason for its incredible success. TD is putting extra emphasis on having the absolute best customer service. Whereas branches at competitors are closing and reducing hours, TD is actively expanding its network of branches, most of which are now open later and on weekends. It’s a friendlier approach that appears to be working well for both customers and investors.
