3 Under-$50 Canadian Dividend Stocks I’d Buy to Retire Early

In this article, I’ve highlighted three of the best under-$50 Canadian dividend stocks that could help you retire early in life.

| More on:
Early retirement handwritten in a note

Image source: Getty Images

It’s always a good idea to start planning for your retirement early. This way, you not only get time to start saving money for your retirement but also can invest your hard-earned money in some fundamentally strong stocks for the long term so that the return you get on your investment could help you retire earlier than you expected. In this article, I’ll highlight three of the best Canadian dividend stocks that could help Motley Fool investors retire early. All three stocks are trading in the $40-$50-per-share range right now.

Labrador Iron Ore Royalty stock

Labrador Iron Ore Royalty (TSX:LIF) is a Toronto-based firm that owns more than 15% interest in Iron Ore Company of Canada (IOC) — one of the top iron ore concentrate and iron ore pellets producers in the country. LIF’s solid revenue and earnings growth and excellent profitability are a reflection of IOC’s consistently expanding operations. This consistent growth is one reason why Labrador Iron Ore stock has yielded solid double-digit positive returns for investors in five out of the last six years.

LIF stock has risen by 28% in 2021 so far to $41.86 per share. The stock currently offers an eye-popping dividend yield of around 13%. Motley Fool investors — with retirement in mind — can buy this high dividend stock right now to get ready for their early retirement.

Canadian Natural stock

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) has been among one of the top-performing Canadian energy stocks this year. After losing nearly 27% of its value, the stock has risen by 46% this year so far to $44.51 per share.

The recent growth trends in Canadian Natural’s revenue, earnings, and profit margin clearly reflect its stellar post-pandemic financial recovery. After the recent rally in commodity prices, the company has increased its capital budget for 2021 to actively invest in future growth opportunities. These investments are likely to boost its long-term growth outlook and keep its stock soaring in the coming years.

Canadian Natural stock currently has an attractive dividend yield of more than 4%. Notably, in the five years between 2015 and 2020, its dividend per share rose by 85%. Also, CNQ’s robust business model, quality assets, and strong free cash flow make its stock worth buying for Canadian dividend investors who want to grow their saved money for early retirement.

Pembina Pipeline stock

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is another market leader in the Canadian energy infrastructure and logistics space. Currently, the company has a market cap of $22.2 billion, as its stock trades at $40.34 per share. The stock has outperformed the broader market this year. It has risen by 34% compared to a nearly 19% rise in the TSX Composite Index.

Pembina’s decades-long track record of delivering excellent value to investors through market cycles makes it one of the most reliable TSX stocks to buy for your retirement planning. I expect the company’s solid profitability, strong financial outlook, and consistent earnings growth to help its stock yield solid returns in the long term. Moreover, Pembina Pipeline stock has a handsome dividend yield of 6.3%, which should let you generate consistent income, even in difficult economic times.

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 PEMBINA PIPELINE CORPORATION. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Dividend Stocks

A person builds a rock tower on a beach.
Dividend Stocks

3 Stocks to Anchor Your Portfolio in a Rocky Market

Three stocks are solid anchors in any portfolio today for their outperformance in a weak market and defiance of the…

Read more »

money cash dividends
Dividend Stocks

3 Solid Dividend Stocks That Cost Less Than $30

Given their solid financials and healthy cash flows, the following under-$30 dividend stocks are a good buy in this volatile…

Read more »

grow money, wealth build
Dividend Stocks

2 High-Yield Dividend Stocks With Rock-Solid Payout Ratios

These two dividend stocks offer unbelievably high yields of more than 7% and earn more than enough free cash flow…

Read more »

Dividend Stocks

5 Steps to Making $500 in Monthly Passive Income in 2023

Generating monthly passive income isn't as hard as it sounds. Here are 5 steps to start making $500 every month.

Read more »

sad concerned deep in thought
Dividend Stocks

Worried About a Recession? Invest in This Stable Dividend Stock to Rest Easy

Stable dividend stocks bought primarily for their payouts can offer you surety of returns, even during a recession.

Read more »

A golden egg in a nest
Dividend Stocks

How to Turn $50,000 Savings Into a Generous Nest Egg in 2 Decades

Build a generous nest egg in 20 years by investing your accumulated savings in Dividend Aristocrats and holding them in…

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

Down by 8%: Should You Buy Dollarama Stock Right Now?

A heavily discounted stock can be an opportunity or a liability. To determine which way a particular discounted stock may…

Read more »

Growth from coins
Dividend Stocks

2 Growth Stocks That Also Offer Incredible Dividends

Given their solid financials, steady growth prospects, and healthy dividend yields, I am bullish on these two TSX stocks.

Read more »