These 3 Canadian Dividend Stocks Could Let You Retire a Millionaire

In this article, I’ll highlight three of the best Canadian dividend stocks that could help you retire very rich — even a millionaire.

| More on:
A golden egg in a nest

Image source: Getty Images.

Most of us spend our lives thinking about ways to retire at an early age with plenty of money at our disposal. Retiring super-rich — without any financial worries — might sound very difficult at first. However, it might not be as difficult as it sounds if you carefully start saving money at an early age and invest it in some fundamentally strong dividend stocks for the long term. In this article, I’ll highlight three of the best Canadian dividend stocks that could help you retire very rich — even a millionaire.

Enbridge stock

If you want to invest in Canadian stocks to retire super-rich, then you must include Enbridge (TSX:ENB)(NYSE:ENB) in your portfolio, in my opinion. This energy infrastructure company currently has a market cap of $103 billion and mainly focuses on oil and natural gas transportation across North America.

Enbridge has consistently been rewarding its investors with high dividends for several decades. Currently, its stock has an attractive dividend yield of 6.6% at the market price of $50.71 per share. The company’s low-risk and highly profitable business model allows it to generate investable free cash flows. Apart from its existing conventional energy-transportation infrastructure, ENB’s management is focusing on expanding its renewable energy infrastructure for future growth.

These positive factors have allowed Enbridge to increase its dividends by a solid 74% between 2015 to 2020. Such amazing dividend growth could help you retire very rich — sooner than you expect.

TC Energy stock

TC Energy (TSX:TRP)(NYSE:TRP) is another Canadian stock you should buy today to plan your dream retirement. Just like Enbridge, it’s also a Calgary-based energy infrastructure company — with a market cap of $61 billion. TC Energy has decades of history in providing excellent value to its investors as, since 2000, its average annual total return has been around 12%.

At the current market price of $62.28 per share, its stock has a handsome dividend yield of 5.6%. While TC Energy’s financials are recovering fast from the pandemic-related blows, its long-term growth prospects look even brighter. The company has secured a capital program worth $21 billion in the pipeline through 2025.

Despite all these positive factors, TRP stock hasn’t seen much appreciation this year so far. It has risen by nearly 21% after losing 25% of its value last year. That’s why I find TC Energy one of the best and cheap Canadian dividend stocks to buy today — if you want to grow your wealth exponentially by retirement.

BCE stock

BCE (TSX:BCE)(NYSE:BCE) is my third stock pick for Canadian investors who want to become super-rich by the time they retire. It’s a well-known Verdun-based communication giant that makes most of its revenue (more than 90% in 2020) from its home market. BCE stock is trading at $64.89 per share with about 19% year-to-date gains. The stock has a strong dividend yield of 5.4% at the moment.

Apart from its key strength in the wireline services segment, BCE is aggressively expanding its wireless service with 5G technology in focus. Overall, its consistent dividend growth, strong balance sheet, and decades-long track record of generating sustainable returns for investors make it one of the best Canadian dividend stocks to buy for long-term investors to retire rich.

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 owns shares of and recommends Enbridge. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Dividend Stocks

TFSA and coins
Dividend Stocks

Maximize Your Retirement Income: How to Turbocharge Your TFSA Returns

TFSA investors could pick different strategies to boost returns.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Canadian Utilities Is a “Dividend King,” But I Like This Stock Even More

Canadian Utilities (TSX:CU) stock is a solid dividend provider, but there's more to look at then just how much you're…

Read more »

Path to retirement
Dividend Stocks

Retire Rich: TFSA Stocks to Power Your Golden Years

Investing in your TFSA early has huge benefits. Here’s a look at some stocks for your TFSA that can power…

Read more »

money cash dividends
Dividend Stocks

These TSX Telecom Stocks Are Dialling Up Impressive Profits 

Two telecom stocks are dialing up dividend profits for shareholders while inflation and interest are slowing dividends for some companies.

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Dividend Stocks

2 Top Canadian Energy Stocks to Buy Right Now

Blue-chip TSX stocks like these two Canadian energy sector giants can help you generate substantial long-term wealth growth.

Read more »

edit Safety First illustration
Dividend Stocks

Safeguarding Your Wealth: 5 Safe Stocks to Buy in a Rising Interest Rate Market

Established companies like the Canadian National Railway tend to be relatively safe in tough economic conditions.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

1 Passive-Income Stream and 1 Dividend Stock for $288 in Monthly Income

It can be hard to invest when you don't have any cash, so create some from this passive-income method and…

Read more »

Dividend Stocks

2023 TFSA Contribution Time: 2 Dividend Stocks to Buy With $6,500

Buy these two great dividend stocks in your TFSA as a part of a diversified portfolio if you haven't already.

Read more »