3 TSX Stocks That Are Perfect to Start Your Retirement Portfolio

Canadians building their retirement portfolios should target dependable TSX stocks like Suncor Energy Inc. (TSX:SU)(NYSE:SU) and others.

| More on:
edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.

Image source: Getty Images

Canadians who are just starting their investment journey should think about building a retirement portfolio right off the bat. The COVID-19 pandemic has accelerated retirement plans for many Canadians. However, it may have also delayed retirement planning for those who were distracted during the crisis.  Today, I want to look at three TSX stocks that are perfect for a beginner’s retirement portfolio. Let’s jump in.

How should beginners look to build their first retirement portfolio?

Why is it important for Canadian investors just starting out to build a retirement portfolio? For one, the opportunities afforded to a new generation of workers has been severely degraded over the past several decades.

Employees in the private sector have experienced a massive decline in defined-benefit pension plans (DBP). Meanwhile, public sector employees have also seen these offerings decline by about 4% over the last two decades. This is according to data from the National Institute on Aging (NIA). Because of this, beginner investors need to learn to build and maintain a self-directed retirement portfolio that can provide the nest egg they will need down the line.

Beyond that, Canadians should target TSX stocks that are dependable in their retirement account. It is always nice when a stock can provide reliability, capital growth, and income. That is especially true in this inflationary climate.

Here’s a TSX stock that you can depend on for decades

Suncor Energy (TSX:SU)(NYSE:SU) is the first TSX stock I’d look to snatch up in our first retirement portfolio. This Calgary-based integrated energy company once boasted that its oil sands business would last for another 100 years, even in the face of the renewable energy drive. Shares of Suncor have climbed 25% in 2022 as of close on August 17. This top energy stock is perfect for a starting retirement portfolio.

The company released its second-quarter (Q2) fiscal 2022 results on August 4. It posted adjusted funds from operations (AFFO) of $3.81 billion, or $2.71 per common share — up from $722 million, or $0.48 per common share, in the previous year.

This TSX stock currently possesses a very favourable price-to-earnings (P/E) ratio of 6.3. Better yet, it offers a quarterly dividend of $0.47 per share. That represents a solid 4.5% yield.

Don’t sleep on the Big Six Canadian banks in your retirement planning

Scotiabank (TSX:BNS)(NYSE:BNS) is one of the top Canadian bank stocks. It is often referred to as “The International Bank” due to its wide global reach, particularly in Latin America. Shares of this top TSX stock have dropped 10% in 2022. The stock is still in the black in the year-over-year period. Bank stocks offer a great balance of capital growth and income in a retirement portfolio.

Investors can expect to see Scotiabank’s third-quarter fiscal 2022 earnings before markets open on August 23. This TSX stock last had an attractive P/E ratio of 9.8. Moreover, it offers a quarterly dividend of $1.03 per share, which represents a strong 5% yield.

One more TSX stock I’d snag for its stability and dividend today

BCE (TSX:BCE)(NYSE:BCE) is one of the top telecommunications companies in Canada. This makes it a dependable bet for a retirement portfolio. Its shares are down marginally in the year-to-date period.

In Q2 2022, BCE reported operating revenue growth of 2.9% to $5.86 billion. Meanwhile, it reported adjusted net earnings of $791 million, or $0.87 per share — up 5.3% and 4.8%, respectively, from the previous year. This TSX stock also offers a quarterly dividend of $0.92 per share, representing a very strong 5.6% 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 of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA.

More on Investing

Target. Stand out from the crowd
Dividend Stocks

RRSP Pension: 2 Dividend Stocks to Buy on the Latest Dip

These high-yield TSX stocks look cheap right now for RRSP investors.

Read more »

bulb idea thinking

The Smartest TSX ETF to Buy With $1,000 Right Now

Forget the TSX 60 or the TSX Composite. I prefer the TSX Dividend Aristocrats.

Read more »

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada

CPP Benefits Not Enough? This Top Dividend Stock Can Help Fund Your Retirement

Canadian retirees can look to supplement their CPP payout with quality dividend stocks such as Headwater Exploration.

Read more »

grow dividends
Stocks for Beginners

Why Cargojet Stock Is Surging Past 52-Week Highs

Cargojet (TSX:CJT) stock surged by 17% after a new deal was announced, with upgrades coming in as well for the…

Read more »

protect, safe, trust

It’s Time to Defend Your Wealth: 3 Top Stocks to Help Keep What’s Yours

For those looking to defend your wealth against what appear to be robust oncoming macro headwinds should consider these stocks.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Safe and Sound Stocks for Canadians: My Top 5 Choices

Five safe stocks to buy on a market pullback.

Read more »

Financial technology concept.

Couche-Tard Stock: Today Is a Huge Buying Opportunity

Alimentation Couche-Tard (TSX:ATD) stock looks like a steal after its latest unwarranted plunge into a correction again.

Read more »

A stock price graph showing growth over time
Metals and Mining Stocks

Why Cameco Stock Soared 23% This Year

Cameco stock continues to ride high on strong supply/demand fundamentals and growing momentum in the nuclear industry.

Read more »