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.
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 stocks mentioned. The Motley Fool recommends EMERA INCORPORATED.