In July, I’d discussed a number of studies that revealed just how unprepared many Canadians are for retirement. Of course, there are other factors that have contributed to this worrying development. A Statistics Canada study in 2017 revealed that the average wage Canadians are paid per hour has remained relatively unchanged since the 1970s. “Taking inflation into account, the minimum wage peaked in 1976 at just over $11 an hour in Canada,” the report read. “The following year — 1977 — average hourly earnings peaked at close to $24.” For those already retired or nearing retirement, the option to supplement…
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In July, I’d discussed a number of studies that revealed just how unprepared many Canadians are for retirement. Of course, there are other factors that have contributed to this worrying development. A Statistics Canada study in 2017 revealed that the average wage Canadians are paid per hour has remained relatively unchanged since the 1970s. “Taking inflation into account, the minimum wage peaked in 1976 at just over $11 an hour in Canada,” the report read. “The following year — 1977 — average hourly earnings peaked at close to $24.”
For those already retired or nearing retirement, the option to supplement income through investing should be a priority. Today, we are going to look at four stocks that provide attractive income. These companies also boast a wide economic moat for investors looking for stability.
Enbridge stock was up 1.14% in early morning trading on August 9. The stock has dropped 5.3% in 2018 so far. Enbridge has experienced volatility over the past year, but it has been dealt some good news in recent months. Higher oil and gas prices have sparked a run for Canadian energy stocks. More importantly, Enbridge won approval for its Line 3 pipeline replacement from Minnesota regulators in late June.
Enbridge last announced a quarterly dividend of $0.671 per share, representing a 5.5% dividend yield.
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM)
CIBC stock has dropped 2.8% in 2018 as of morning trading on August 9. Shares are up 9% year over year. Back in July, I’d explored why CIBC was my top bank stock for investors on the hunt for income. The stock boasts a quarterly dividend of $1.33 per share, which represents a 4.4% dividend yield.
CIBC is set to release its third-quarter results before markets open on August 23. The bank has been powered by very good results in its U.S. business and has also benefited from improved margins in its domestic operations.
Fortis stock has dropped 7.4% in 2018 so far. Utilities have been battered in 2018, as the Bank of Canada has continued to pursue its rate-tightening policy shift. These stocks have been viewed as some of the safest income options since the financial crisis but have somewhat fallen out of favour with bond yields on the rise.
However, rates remain near historic lows, and Fortis boasts over 40 consecutive years of dividend growth. Currently, the stock offers a quarterly dividend of $0.425 per share, which represents a 3.9% dividend yield.
Shares of the Montreal-based grocery retail chain Metro have climbed 6.5% in 2018 so far. This has bucked the trend among grocery retailers that have extended struggles into 2018 due to a number of factors. Some of these include rising labour costs from minimum wage hikes and the rising threat of Amazon.com in the grocery sector.
Metro has taken steps to combat these developments, including an expansion of its online direct grocery-delivery service to more cities in Quebec. It will also expand into Ontario this year. The stock offers a quarterly dividend of $0.18 per share, which represents a 1.6% dividend yield.
When you buy heavily cyclical stocks at low prices… and then hold the shares until the cycle reaches its peak… you can make a very healthy profit.
Every investor knows that. But many struggle to identify the best opportunities.
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Our top advisor Iain Butler has just identified his #1 stock to buy in 2018 (and beyond).
The last time this stock went from the low point of its cycle to the peak… shares shot from $12 to $40 inside of 4 years. That’s an 300%-plus return. And if you missed out on that ride, today might just be your second chance.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. The Motley Fool owns shares of Amazon. Enbridge is a recommendation of Stock Advisor Canada.