Retirees: 3 Super Dividend Stocks to Own in 2021

Canadian retirees should scoop up top dividend stocks like Emera Inc. (TSX:EMA) as we look ahead to the month of May.

| More on:
You Should Know This

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

In early February, I looked at ways Canadians could retire in comfort with just CPP and OAS payments. This period, before the COVID-19 pandemic, feels long ago. The pandemic has introduced some of the most radical social spending programs in our nation’s history. It has also accelerated the retirement plans for some Canadians. Instead of relying on CPP and OAS, retirees should look to income-producing stocks. Today, I want to look at three dividend stocks that can put money in your pocket in 2021. Let’s dive in.

Retirees can trust this utility stock

Earlier this month, I’d suggested that investors should keep their eyes on companies that showed resilience during the pandemic. Emera (TSX:EMA) is a Nova Scotia-based multinational energy holding company. Its shares have climbed 6.1% in 2021 as of early afternoon trading on April 27. The dividend stock is up 1.4% from the prior year.

Retirees should feel confident in holding this top Canadian utility. The company released its fourth quarter and full year 2020 results on February 16. Adjusted net income rose to $665 million or $2.68 per common share – up from $621 million or $2.59 per common share in the prior year. Lower Canadian dollar exchange rates also provided a boost from Emera.

This dividend stock last had a favourable price-to-earnings ratio of 15. Moreover, it offers a quarterly dividend of $0.637 per share. That represents a solid 4.4% yield.

An energy stock worth stashing in late April

Retirees should also keep their eyes on the resurgent energy sector. Oil and gas prices are on the march in the face of a global economic rebound. Imperial Oil (TSX:IMO)(NYSE:IMO) is one of my favourite dividend stocks to target in this space. This company is engaged in exploration, production, and the sales of crude oil and natural gas in Canada. Its shares have climbed 28% in 2021, while the stock is up 68% from the prior year.

In 2020, Imperial Oil saw net earnings plummet $4 billion year over year and $5.41 on a per share basis. Imperial Oil and its peers were hit hard by the COVID-19 pandemic. The company achieved its highest ever quarterly upstream production of 460,000 gross oil-equivalent barrels per day.

The dividend stock offers retirees a quarterly distribution of $0.22 per share. That represents a 2.7% yield.

This super dividend stock is perfect for retirees

REITs have proven to be a great source of monthly income for retirees. NorthWest Healthcare REIT (TSX:NWH.UN) is one of my favourite options for Canadians in late April. The REIT provides investors exposure to a portfolio of high-quality global real estate. Shares of NorthWest Healthcare have climbed 5.9% in 2021. The dividend stock is up 33% year over year.

Adjusted fund from operations (AFFO) per unit rose 1% to $0.85 in 2020. Meanwhile, IFRS revenue increased 2.1% to $374 million. Total assets under management (AUM) jumped 20% to $7.8 billion.

Shares of NorthWest last had a very favourable P/E ratio of 8.4. Better yet, it offers a monthly distribution of $0.067 per share. This represents a tasty 6% yield.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends EMERA INCORPORATED and NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Investing

funds, money, nest egg
Dividend Stocks

TFSA Passive Income: 2 Great Canadian Dividend Stocks for Retirees to Buy Now

Retirees seeking reliable passive income can now buy top TSX dividend stocks at cheap prices.

Read more »

man window buildings
Stocks for Beginners

Foolish Beginners: 1 Stock Pick to Buy Now for a $6,000 TFSA

Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) stock looks cheap as shares regain their footing.

Read more »

data analyze research
Dividend Stocks

Earn Monthly Passive Income: 2 Hot Dividend Stocks in Canada to Buy Now and Hold Forever

These two hot dividend stocks could help you to earn stable monthly passive income in Canada.

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Be a Landlord: Top 2 REITs (With Monthly Dividends) I’d Buy and Forget

You can be a landlord and earn monthly dividends for the rest of your life. All you need is the…

Read more »

Target. Stand out from the crowd

3 Canadian Stocks to Buy That Beat Their Earnings Expectations This Week

If you're looking for top Canadian stocks to buy, here are three impressive companies that continue to perform well in…

Read more »

A stock price graph showing declines
Energy Stocks

2 Cheap Canadian Stocks That Likely Won’t Be on Sale For Much Longer

These two Canadian stocks are close to returning to all-time highs. Don’t miss your chance to take advantage of these…

Read more »

A worker gives a business presentation.
Dividend Stocks

Got $5,000? 3 Stocks to Hold for the Next 20 Years

New investors don’t need tens of thousands to start a portfolio. Here are three stocks to hold for the next…

Read more »

canadian energy oil
Energy Stocks

3 Rising Energy Stocks to Buy as Oil Hits 6-Month Low

Three rising energy stocks are strong buys today as their upward momentum is likely to continue due to the tight…

Read more »