Many of us spend our lives thinking about how we would like to have plenty of money to support us by the time we retire, so we can live the best years of our lives without financial worries. The thought of achieving that goal might seem difficult, because even after retiring with plenty of money, you have to make sure that your wealth can last.
If you have a significant amount in savings as a retiree, investing it to earn passive income could be a viable way to fuel its growth in the coming years.
BCE
BCE (TSX: BCE)(NYSE: BCE) is my first pick for retirees looking to create an income-generating portfolio to fund their retired life. With a $57.47 billion market capitalization, the Verdun-based telecommunications giant generates most of its income from its home market. At writing, the stock is trading for $63.45 per share, and it boasts a juicy 5.52% dividend yield.
If you love dividends, BCE stock could be an excellent stock for your retirement income portfolio. Over the last five years, the companyâs management has increased shareholder dividends by 25%. Besides being a low-risk dividend stock, BCE offers significant growth potential due to the booming 5G market.
An investor looking to secure a portfolio of reliable income-generating assets with growth potential might want to consider adding this dividend stock to their portfolios today.
TC Energy
TC Energy (TSX: TRP)(NYSE: TRP) is a Dividend Aristocrat with more than 20 years of payout growth that showcases its reliability. This $60.18 billion market capitalization Calgary-based energy company has an impressive 5.66% dividend yield. It’s had a remarkably strong 2021, having returned almost 18% for its investors year to date.
Other than its dividends, another important aspect it has going for it is its diverse operations. The company operates infrastructure for energy not only in Canada but in the U.S. and Mexico as well. It’s diversified well into three separate sectors: liquid pipelines, natural gas pipelines, and energy. Although energy has had a tough time as of late, TC Energy is a solid choice if you think that energy will continue to make a prolonged comeback.
Foolish takeaway
The right Canadian dividend stocks are a gift that keeps on giving. Finding reliable income-generating assets that can help you keep earning more money from your invested capital is the key to creating another revenue stream to support your retirement.
TC Energy stock and BCE stock are two ideal dividend stocks that you could use to create the foundations of such a passive income-generating portfolio. It’s good to diversify into different sectors as you are retired, so take a look at these two stellar companies.
