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Stressed-Out Retirees: Here Are 3 “Forever Assets” Yielding Up to 4% (for Both Riches and Sleep)

Hello again, Fools. I’m back to call your attention to three large cap stocks for your watch list — or, as I like to call them, my top “forever assets.” As a refresher, I do this because companies with a market cap of more than $10 billion: can keep your portfolio stable during periods of high volatility; and provide steady and healthy dividends year after year.

So if you’re retired (or nearing retirement) and are nervous about income, living off large-cap dividends can help ease your stress.

Let’s get to it.

Southern exposure

Kicking things off is none other than banking gorilla Bank of Montreal (TSX:BMO)(NYSE:BMO), which currently sports a market cap of $64 billion.

BMO continues to see particularly strong growth south of the border. Just last month, in fact, the company said it has already surpassed its target of achieving one-third of its earnings from the U.S. The goal was achieved in six months instead of the 3-5 year timeframe management had targeted.

“The level that we’re at right now is sustainable, and I think we’re going to see the U.S. business continue to grow faster than the rest of the bank — but not that much faster than the rest of the bank,” said CEO Darryl White.

BMO is up 13% in 2019 and offers a solid yield of 3.9%.

Plant in your portfolio

With a market cap of $40 billion, potash giant Nutrien (TSX:NTR)(NYSE:NTR) is next on our list of forever assets.

For such a large company, Nutrien provides a rare combination of income and growth. In the most recent quarter, adjusted EBITDA spiked 22% despite being hurt by extremely wet weather. On top of that, management paid out $1.06 billion to shareholders in the form of dividends and buybacks.

“Our organization is focused on what it can control and how best to deliver long-term value to stakeholders,” said CEO Chuck Magro. “In the first quarter, we allocated almost $1 billion towards growing our retail business in core markets and repurchased over $800 million of our stock.”

Nutrien is up 9% in 2019 and offers a healthy yield of 3.2%.

Roger that

Rounding out our list is communications giant Rogers Communications (TSX:RCI.B)(NYSE:RCI), which currently boasts a market cap of $37 billion.

Rogers’ dividend continues to be supported by its massive scale, diversified nature, and strong cash flows. Despite a Q1 decline in media and wireless equipment revenue, Rogers’ operating cash flow increased 13% to $998 million. Moreover, wireless services revenue improved 4%.

Management also repurchased $155 million of shares during the quarter, the company’s first buyback since 2013.

“Overall, we have confidence in our long-term growth plans, and remain on track to deliver on our healthy outlook for 2019,” said CEO Joe Natale.

Rogers shares’ are up 2% so far in 2019 and currently offer a solid yield of 2.8%.

The bottom line

There you have it, Fools: three forever banking assets worth considering.

As always, they aren’t formal recommendations. Instead, see them as a starting point for further research. Even the largest companies can suffer setbacks, so plenty of your own due diligence is still required.

Fool on.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Nutrien and Rogers are recommendation of Stock Advisor Canada.


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