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

This trio of large-cap stocks, including Bank of Montreal (TSX:BMO)(NYSE:BMO), can provide the peace your portfolio needs.

Senior housing

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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.

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

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