The Motley Fool

Retirees: 3 Dividend Stocks to Boost Your CPP Pension

Image source: Getty Images.

Investors may get jittery if they have not been able to save enough for retirement. The Canada Pension Plan (CCP) payouts are not sufficient, especially if you are looking to spend your retirement comfortably in large Canadian cities such as Vancouver and Toronto.

We have seen that the average CPP payout for a new recipient starting pension at the age of 65 is $672.87, while the maximum amount is $1,175.83. So, retirees need to invest in high-quality, dividend-paying stocks to generate a steady stream of recurring income.

Here we look at three top Canadian stocks with high dividend yields that retirees can look to add to their portfolios.

Brookfield Property Partners

Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY) is a diversified global real estate company. It owns, develops, and operates a portfolio of office, retail, industrial, hospitality, triple net lease, and student housing assets, among others.

Brookfield is one of the largest players in the REIT space with a vast global presence. It has managed to grow sales from $4.78 billion in 2017 to $5.88 billion in 2019. Analysts expect the company to post sales of $6.38 billion in 2019 and $6.78 billion in 2020.

This REIT has a forward dividend yield of 7.24%. This means if you invest $10,000 in Brookfield Property Partners, the annual dividend payout will be $724. BPY is looking to increase dividend payouts between 5% and 8% annually, which will not hurt its cash balance given the company’s payout ratio of 69%.

In case investors are worried about a real estate crash in North America, BPY can still hold its own, considering the company’s global portfolio, which diversifies risk.

Laurentian Bank of Canada

In Canada, the Big Five banks are hugely popular. However one mid-cap banking company is fast gaining traction. Laurentian Bank of Canada (TSX:LB) is a Canada-based, diversified financial services provider.

It is a chartered bank operating in traditional segments such as Personal, Business, and Institutional. The Personal business is for individuals, while the Business segment caters to corporations. Its Institutional business provides a range of services, including market analysis, research, and advisory.

Analysts expect Laurentian Bank’s sales to rise by 2.9% to $996.32 million in 2020 and 3.5% to $1.03 billion in 2021. However, its earnings are estimated to rise by 5.4% in 2020 and 5.8% in 2021.

The stock is trading at a forward price-to-earnings ratio of 9.2, which can be considered undervalued if looking at the earnings growth and a juicy dividend yield of 6.1%. Laurentian Bank has a price-to-sales ratio of 2.02 and a price-to-book ratio of 0.8, indicating solid upside potential for long-term investors.


Shares of Canada’s energy giant Enbridge have returned 16.4% in the last year. Despite its huge size, the company continues to invest heavily in capital expenditures with multiple expansion plans in the pipeline. Enbridge transports close to 25% of the crude oil of North American producers. The stock has a forward dividend yield of 5.8% and remains an excellent pick for income investors over the long term.

Dividend stocks can be used to generate an alternate revenue stream. You need to identify companies that have strong fundamentals and that can continue to raise the dividend payouts on a consistent basis.

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.

Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

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.

The Motley Fool recommends Brookfield Property Partners LP. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.