Canadians: 3 Easy Stocks to Invest for Retirement

If you don’t want to spend too much time managing your stock portfolio in retirement, consider buying these easy stocks now.

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The following stocks are easy to buy and hold, whether you’re in retirement or not retiring until decades later.

An easy Canadian bank stock to invest in

As the smallest of the Big Six Canadian banks, National Bank of Canada (TSX:NA) doesn’t get enough appreciation from the investing community. Coming from a smaller base, it has the advantage of growing at a higher pace than its larger peers.

Indeed, the bank stock has outperformed the Canadian stock market and the banking industry in the past three, five, and 10 years. Below is how an initial $10,000 investment has grown over the past decade. Decades-long investors of the bank stock made 29% and 61%, respectively, more money than the industry and the market.

XIU Total Return Level Chart

XIU Total Return Level data by YCharts

National Bank just reported its third-quarter (Q3) earnings results this week. Its year-to-date results lead the industry with revenue growth of 9% and earnings-per-share growth of 12%. The 4%-yield, quality bank stock trades at a discount of over 11% at about $91 per share. It’s an easy stock to invest for retirement, no matter if you’re already retired or have decades until retirement.

Buy and hold TELUS stock for retirement

TELUS (TSX:T)(NYSE:TU) is another easy stock to invest in for stable income and growth in retirement. The solid 4.5% dividend stock trades at a discount of over 11% at about $30 per share.

It has been paying safe dividends since 1999. It is a Canadian Dividend Aristocrat with a dividend-growth streak of about 18 years. Its five-year dividend-growth rate of 6.7% outperforms that of its competitors. Its trailing-12-month payout ratio is about 61% of net income.

The big Canadian telecom reported its Q2 results early this month. Here are some highlights versus the prior year’s quarter:

  • Revenue growth of 7.1%
  • Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), a cash flow proxy, growth of 8.9%
  • Adjusted net income growth of 21%
  • Adjusted earnings-per-share growth of 23%

It’s experiencing industry-leading growth with the support of continued high-growth momentum at its technology-oriented verticals across TELUS International, TELUS Health, and TELUS Agriculture, and Consumer Goods.

Need more income in retirement?

If you need more income in retirement, you can consider holding some Dream Industrial REIT (TSX:DIR.UN) in your Tax-Free Savings Account (TFSA) for tax-free monthly income. The Canadian REIT yields 5.7%, which is pushed up from its fallen stock price.

The stock corrected more than 30% from its 52-week and all-time high largely due to rising interest rates. However, its business fundamentals remain robust.

First, its occupancy rate is about 99%. Second, the demand for industrial spaces continues to be strong versus the supply available. This is evident by the market rent that’s higher than the REIT’s in-place and committed base rent. Its weighted average lease term is 4.7 years. So, opportunities exist to renew leases at higher rents. Third, Dream Industrial is expanding its portfolio. At the end of Q2, it had 257 properties versus 215 properties a year ago.

In the first half of the year, its funds from operations per unit is 13% higher year over year, leading to a safer payout ratio of about 81%. Its net debt to asset ratio of approximately 30% is also lower than its target of mid to high 30s.

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 Kay Ng has positions in DREAM INDUSTRIAL REIT and TELUS CORPORATION. The Motley Fool recommends DREAM INDUSTRIAL REIT and TELUS CORPORATION.

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