The Motley Fool

4 Stocks That Can Provide Big Income in Retirement

In August, we have gone over a number of options for investors looking to restructure their retirement portfolios. That can be through stocks that offer huge growth opportunities or through equities that boast more attractive dividend yields.

Today, we are going to look at four options that all boast over 20 consecutive years of dividend growth. Those in or nearing retirement can benefit from the stability that these equities provide in the long term.

Canadian Utilities (TSX:CU)

Canadian Utilities is a Calgary-based utility and a subsidiary of ATCO Ltd. The company offers gas and electricity services. Shares were down double digits in 2018 as of afternoon trading on August 22. However, Canadian Utilities also boasts 46 consecutive years of dividend growth. This is the longest such streak of any equity on the TSX.

The company posted its second-quarter results on July 26. Adjusted earnings fell to $107 million, or $0.39 per share, compared to $126 million, or $0.47 per share, in the prior year. Canadian Utilities has already spent over $1.1 billion on capital growth projects in the first six months of 2018. On July 11, the company declared a quarterly dividend of $0.3933 per share, representing a 4.7% dividend yield.

Empire Company (TSX:EMP.A)

Empire Company owns a number of businesses in the food retail sector, including Sobeys, IGA, Foodland, and others. Shares are up 18% year over year as of this writing. Empire has achieved 23 consecutive years of dividend growth for its shareholders. The company released its fourth-quarter and fiscal 2018 earnings on June 28.

Empire posted adjusted earnings per share of $0.35 compared to $0.18 in the prior year. It achieved free cash flow of $350.6 million and hiked its annual dividend by 4.8% to $0.44 per share. This represents a 1.6% dividend yield.

Enbridge (TSX:ENB)(NYSE:ENB)

Enbridge stock has held a sustained rally since mid-April, as oil and gas prices began to rally in the late spring. The company also won a huge victory, as its Line 3 Replacement project was approved by Minnesota regulators in late June. Enbridge has posted 22 consecutive years of dividend growth.

In the second quarter, adjusted net earnings reached $1.09 billion, or $0.65 per share, compared to $662 million, or $0.41 per share, in Q2 2017. The company last declared a quarterly dividend of $0.671 per share, representing an attractive 5.6% dividend yield.

Imperial Oil (TSX:IMO)(NYSE:IMO)

Imperial Oil has also performed extremely well since early April on the back of strong oil and gas prices. However, the stock plunged following a surprise second-quarter loss that was revealed in late July. Imperial Oil has achieved 23 consecutive years of dividend growth.

The company reported the loss largely due to planned and unplanned maintenance that ate into its Q2 output. Still, its Q2 net loss of $77 million was better than the $181 million loss last year due to higher oil prices and less maintenance. Imperial Oil last hiked its dividend to $0.19 per share in April, representing a 1.6% dividend yield.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. Enbridge is a recommendation of Stock Advisor Canada.

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