4 Dividend Stocks for a Retirement Portfolio

Baby boomers that have retired or are nearing retirement should target stocks like Goeasy Ltd. (TSX:GSY) and others to pursue capital growth and steady income.

| More on:
retired life

A survey released by Royal LePage in August revealed that 23% of all baby boomer households still had at least one child living at home. Of those, 9% expected their child to stay in the family home beyond the age of 35. The rate of home ownership has declined since 2011, which has generated pressure on policy makers to institute changes. The CMHC recently unveiled rules to make it easier for self-employed people to qualify for mortgages.

This development also means that retirees and those on the verge of retirement will be faced with a greater burden than previous generations. Recent studies have also shown that Canadians have failed to keep up with other developed nations in saving for retirement.

Today, we are going to look at four stocks that provide opportunity for capital growth as well as solid dividends.

Waste Connections (TSX: WCN)(NYSE: WCN)

Waste Connections is the third-largest integrated provider of traditional solid waste and recycling services on the continent. It operates nearly 100 active landfills, over 100 transfer stations, and over 60 recycling operations. Shares were up 16.1% in 2018 as of close on August 9.

In the second quarter, Waste Connections exceeded its outlook and posted revenue of $1.24 billion. Adjusted net income rose 18.2% year over year to $172.3 million, or $0.65 per share. The stock offers a quarterly dividend of $0.14 per share, which represents a modest 0.7% dividend yield.

Goeasy (TSX: GSY)

Goeasy stock rose 5% on August 9 and has surged after the release of its second-quarter results. Back in July, I’d targeted Goeasy as my top financial stock for millennials as it is well positioned to take advantage of evolving trends in personal finance. The stock is up over 25% month over month.

In the second quarter, Goeasy posted loan book growth of 121.7% year over year, and revenue climbed 26.4% to $123.3 million. The board of directors approved a quarterly dividend of $0.225 per share, which represents a 1.5% dividend yield.

Stelco Holdings (TSX: STLC)

Stelco is a Hamilton-based steel company. Shares fell 3% on August 9. Canadian steel companies have been forced to adapt to challenges after the Trump administration imposed tariffs worth 25% effective June 1. There is also major concern that the White House could move forward on automobile tariffs, which could have a more dramatic impact on Stelco and other steel producers. This is worrying for Stelco, as it has pinned its growth strategy on its foray into the auto industry.

The good news is that Stelco’s earnings have been stellar since its IPO in late 2017. In the second quarter, it reported that revenue rose 67% year over year to $711 million, and adjusted EBITDA soared 130% to $175 million. Stelco declared a special cash dividend of $1.69 per share in addition to its regular $0.10 dividend.

Genworth MI Canada (TSX:MIC)

Genworth stock fell 1.7% on August 9, but shares have climbed 5% over the past three months. The company avoided fallout from new OSFI regulations in January, as insured buyers were already subject to a stress test as of late 2016. Genworth’s business has also received a boost from higher interest rates that have bolstered margins. The stock offers a quarterly dividend of $0.47 per share, representing a 4.2% dividend yield.

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

More on Dividend Stocks

arrows hit bullseye on target
Dividend Stocks

Buy the Dip: This Dividend Giant Might Be Oversold

This company has increased its dividend in each of the past 26 years.

Read more »

Dividend Stocks

Why This Unglamorous Stock Has Paid Investors for Decades

Canada’s first Dividend Knight that has paid investors for decades is anything but unglamorous.

Read more »

doctor uses telehealth
Dividend Stocks

Vital Infrastructure Is a Savvy TFSA Stock Paying 7% and the Price is Right

Vital Infrastructure Property is a defensive TFSA stock that gives investors high-yield income and predictable returns.

Read more »

ETFs can contain investments such as stocks
Dividend Stocks

No Time for Stock Research? This 1 ETF Does the Work for You

The iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) eliminates the need for stock picking.

Read more »

woman holding steering wheel is nervous about the future
Dividend Stocks

Does Retirement Feel Far Away? These TSX Dividend Stocks Can Speed Things Up

These stocks have made some long-term investors quite rich.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How Much You Really Need in a TFSA to Make $500 a Month

It takes quite a bit of money to get $500 per month in a TFSA if you invest in index…

Read more »

up arrow on wooden blocks
Dividend Stocks

2 Great Canadian Dividend Stocks That Just Raised Their Payouts Again

These companies have delivered annual dividend growth for decades.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

TFSA Passive Income: 3 Incredible Stocks That Earn $2,148/Year

These Canadian stocks have a solid history of dividend distribution and are likely to sustain their payouts in the years…

Read more »