The structure of a retirement portfolio is hugely dependent on where an investor is in their working life. However, some equities remain a strong hold no matter what position you are in. Today, I want to look at three dividend stocks that are perfect for any retirement portfolio. These dependable income-yielding equities offer stability and income.
Why this bank stock is worth picking up ahead of earnings
Canadian Imperial Bank of Commerce (TSX: CM)(NYSE: CM) is the first dividend stock I’d be comfortable holding in my retirement portfolio for the long haul. Shares of this top Canadian bank stock have climbed 37% in 2021 as of close on August 23. The stock is up 50% in the year-over-year period.
Investors can expect to see CIBC’s third-quarter 2021 results before markets open on Thursday, August 26. In Q2 2021, the bank delivered adjusted net income growth of 278% year over year to $1.66 billion, or $3.59 per share. Like its peers, CIBC benefited from strong volume growth across the board and a significant decline in provisions set aside for credit losses. The future looks bright for Canada’s top banks, as the economy continues to rebound.
This dividend stock last paid out a quarterly distribution of $1.46 per share. That represents a 3.9% yield. Shares of CIBC possess a price-to-earnings (P/E) ratio of 12, putting this stock in favourable value territory.
One dividend stock to hold for the long term in your retirement portfolio
BCE (TSX: BCE)(NYSE: BCE) is another top dividend stock that you can rely on in your retirement portfolio. In October 2019, I’d discussed why BCE was perfect for retirees. Shares of BCE have climbed 18% in the year-to-date period. The dividend stock is up 12% from the same time in 2020.
The company unveiled its second-quarter 2021 results on August 5. Its adjusted net earnings have climbed 31% year over year to $751 million, or $0.83 per share. BCE posted 115,916 total wireless mobile phone and mobile connected device, retail internet, and IPTV net additions — up 75% from the prior year. The company has also bolstered its 5G service and aims to cover 70% of the national population by the end of 2021.
Shares of this dividend stock last had a P/E ratio of 20. This puts BCE in solid value territory relative to its industry peers. It last paid out a quarterly distribution of $0.875 per share, representing a strong 5.3% yield. BCE is a stock you can count on in your retirement portfolio.
Here is another dividend stock to buy today
Emera (TSX: EMA) is the third and final dividend stock I’d target for your retirement portfolio today. In October 2020, I’d discussed why Emera was a top defensive stock to snatch up in the face of the COVID-19 pandemic. Its shares have climbed 11% so far this year.
In Q2 2021, Emera delivered adjusted earnings-per-share growth of 13% to $0.54. Its settlement agreement with Tampa Electric is set to boost revenues going forward. Meanwhile, Emera has pushed forward a $7.4 capital investment plan, which is set to bolster its rate base and support future dividend growth.
Emera possesses a solid P/E ratio of 24. This dividend stock offers a quarterly distribution of $0.637 per share. That represents a solid 4.2% yield.
