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Worried CPP Payments Won’t Cover Your Retirement? Consider These 3 High-Yield Dividend Stocks

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Are you getting ready to retire but are worried that CPP payments won’t cover your expenses?

Dividend stocks may be exactly what you’re looking for. Although there’s always the option of living off your savings, dividend-paying stocks let you earn income WITHOUT draining your piggy bank. The best dividend stocks pay more in dividends than any government bond pays in interest, and unlike bonds, common stocks may raise their payouts over time. Additionally, dividend stocks offer the potential to see your savings grow.

Of course, all stocks are risky compared to bonds or GICs. But dividend stocks are some of the safest stocks out there, since they tend to be offered by mature, financially stable companies. If you’re looking for some dividend income to supplement your CPP payments, these three dividend stocks just might fit the bill.


Enbridge (TSX:ENB)(NYSE:ENB) has been one of the best-performing TSX energy stocks this year, rising 12% while most of the industry has stagnated. The company operates one of the longest and most sophisticated crude transportation networks in the world, spanning more than 5,000 kilometres and transporting 1.4 million barrels of oil a day. The company is working on a replacement to its Line III into the U.S., which will not only replace aging infrastructure but add new transportation capacity. The project is facing some regulatory hurdles in the U.S., but these can be best characterized as temporary delays.

As a pipeline company, Enbridge makes money off of distance-based fees rather than direct crude sales, so its business isn’t too vulnerable to commodity price swings. Its stock pays a dividend that yields 6.14%.

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Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS), better known as Scotiabank, is one of the Big Six banks. With over $900 billion in assets and $8.7 billion a year in earnings, it’s a financial behemoth. Scotiabank is one of Canada’s most international banks, with operations in Latin America, Europe, and Asia that, when combined, are worth as much as its Canadian operations. This gives the bank a degree of geographic diversification, ensuring it can grow even when the Canadian economy is doing poorly.

In its most recent quarter, Scotiabank grew its earnings at 3.8% year over year. This is not exactly frothy growth, but it’s enough for the company to keep paying its dividend year after year. Speaking of that dividend, it currently has a 4.9% yield, so you can make almost $5,000 a year on every $100,000 invested in BNS.

RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust (TSX:REI.UN) is Canada’s largest and arguably most respected REIT. It owns a diverse portfolio of rental properties, including many “trophy” properties, like The Well in Toronto. RioCan has faced some criticism over the fact that it still has a large clientele of big-box stores. Retail is considered a risky real estate niche, since there’s a perception that e-commerce is going to kill brick-and-mortar retail. Personally, I think this narrative is overrated; no matter how big e-commerce gets, there’ll always be a certain appeal to shopping in store and trying something before you buy it. But either way, RioCan is branching out into condos with projects like ePlace and RioCan Living, so it is far from a pure retail bet.

RioCan’s distribution yields about 5.4%.

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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 Andrew Button has no position in any of the stocks mentioned. The Motley Fool owns shares of Enbridge. Enbridge  and Bank of Nova Scotia are recommendations of Stock Advisor Canada.

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