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5 Top Stocks to Rule Your Retirement

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Want to rule your retirement?

If so, you have to get into stocks. These days, stocks, real estate, and crypto are pretty much the only asset classes that beat inflation. Of those three asset classes, one (real estate) is more a lifestyle asset than a financial one, and the other (crypto) is highly risky. So, stocks should be the bread and butter of your retirement portfolio. Providing stable, solid returns, they are the “sweet spot” that lets you save while also getting some kind of return. In this article, I’ll explore five top stocks to rule your retirement.

TD Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is a classic retirement stock. It pays a generous dividend, raises its divided almost every year, and is a classic value play with low multiples. It’s not exactly a huge growth play, but it’s the kind of stable, dependable company you can count on for regular income. TD makes a lot of its money from U.S. retail and brokerage operations, which provides a degree of geographic diversification. It’s my favourite Canadian bank overall.

Rogers Communications

Rogers Communications (TSX:RCI.B)(NYSE:RCI) is another dividend-paying Canadian stock. It’s a telco that provides TV, cell, and internet service nationwide. Most telcos enjoy the benefit of high dividend yields, but RCI.B is a solid play on the future of 5G. Rogers currently has the largest 5G network in Canada, thanks in no small part to the fact that it avoided the Huawei fiasco that plagued its competitors. So, it’s a good way to bet on the future of 5G technology in Canada.

CN Railway

Canadian National Railway (TSX:CNR)(NYSE:CNI) is a Canadian railway stock with a low yield but a lot of potential. CN Rail is a vital lifeline for the economy, touching three North American coasts. It transports $250 billion worth of goods per year. As long as the North American economy is growing, then CN Rail will grow along with it. Right now, CNR is in the middle of buying Kansas City Southern, a U.S. railroad that will increase the company’s reach beyond its already vast level. It’s definitely a stock with a lot of potential.

Northwest Healthcare Properties REIT

Northwest Healthcare Properties REIT (TSX:NWH.UN) is a REIT that has a sky-high 6% yield at today’s prices. If you invest just $100,000 in NWH.UN, you get $6,000 in income back each and every year. NWH.UN is a very resilient REIT. As a healthcare REIT, it leases office space to healthcare providers in Canada and Europe. In Canada and most of the E.U., healthcare is ultimately financed by government revenue. So, NWH’s tenants have unparalleled financial stability and ability to pay.

iShares S&P/TSX 60 Index Fund

Last but not least, we have iShares S&P/TSX 60 Index Fund (TSX:XIU). This is Canada’s most popular index fund. It’s built on the TSX 60 — the 60 biggest Canadian stocks by market cap. When you invest in XIU, you get built-in diversification, dividend income, and an ultra-low (0.16%) fee. It’s Canada’s most popular fund for a reason. With a diversified holding of large caps, you’re unlikely to lose your shirt investing in XIU. It’s an ideal asset for a retirement portfolio.

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 Andrew Button owns shares of Canadian National Railway, The Toronto-Dominion Bank, and iSHARES SP TSX 60 INDEX FUND. The Motley Fool recommends Canadian National Railway, NORTHWEST HEALTHCARE PPTYS REIT UNITS, and ROGERS COMMUNICATIONS INC. CL B NV.

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