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Retiree TFSA Investors: 2 Low-Risk Dividend Stocks to Last a Lifetime

How a person invests may change over time. This is mostly driven by financial goals, current financial status, and where you are in your life.

Young investors sometimes prefer high-risk and rapid-growth investments. Retirees, on the other hand, want a safe passive income and the protection of their assets.

As a retiree, if you have the same conservative investment approach, you might like a mix of good yield and low-risk stocks

Fortis (TSX:FTS)(NYSE:FTS) and Rogers Communication (TSX:RCI.B) are two such stocks.

A dependable energy company

Fortis has been around for ages. As a utility company, Fortis provides electricity to about 2 million and natural gas to about 1.3 million customers in the country, the U.S. and the Caribbean.

Fortis is a combination of 11 companies and owns electricity generation, transmission, distribution, and gas distribution assets worth $53 billion.

Fortis currently has a market value of $53.35 per share at the time of writing. The company has steadily grown this value.

The market value is up by 86% in the past 10 years. Fortis is in the very stable and ever-green business of utilities. Another great indicator of the company’s stability and durability through harsh economic times is its dividend history.

As one of the most prominent Dividend Aristocrats in the country, Fortis has increased its payouts for 46 consecutive years. The dividend yield is also relatively high, at 3.59%.

Another parameter that augments Fortis’s status as a stable and low-risk investment is its beta. At 0.06, Fortis’s beta is as low as most betas go. The company’s stock is not correlated to the market patterns at all, which might be a great thing if the grim tidings of a recession come true next year.

A popular telecom company

Rogers is practically telecom royalty. Similar to the banking sector in the country, the telecom sector is mostly controlled by three large telecom companies: Rogers, BCE, and Telus.

Almost 90% of people in the country are connected to one of the big three companies. Among its peers, Rogers stands out through its strong balance sheet and relatively low-risk profile.

Roger’s beta is 0.27, making it the least volatile stock in the bunch. It also stands out in terms of profit margin (13.8%), return-on-equity (23.8%), and diluted EPS (4.03).

Currently, at the market value of $63 per share, and a price-to-earnings ratio of 15.6, it’s also relatively undervalued in the sector.

Roger’s current dividend yield is 3.16%. The payout ratio is also very stable, at 49%.

Foolish takeaway

As a retiree, you might not be using your TFSA to grow your capital gains much, though both the companies above are indeed growing, albeit slowly.

What you might be looking for is a consistent, tax-free revenue stream capable of staying active for decades. Fortis and Rogers are long-standing companies, with prominent places in their sectors.

The companies are low risk enough to keep up their consistent payouts for years to come, maybe even grow them. If you want your TFSA to keep providing for you for a lifetime, you might want to consider Fortis and Rogers as potential investments.

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Fool contributor Adam Othman has no position in any of the stocks mentioned. Rogers Communications is a recommendation of Stock Advisor Canada.

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