4 Dividend Stocks That Are Ideal for a Retirement Portfolio

Canadians looking to build a retirement portfolio should look to dividend stocks like Fortis Inc. (TSX:FTS)(NYSE:FTS) and others right now.

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The S&P/TSX Composite Index was up 129 points in late-morning trading on Thursday, September 8. This volatile market means investors need to be choosy with their picks going forward. Today, I want to look at four dependable dividend stocks that can be trusted in a retirement portfolio in the near and long term. Let’s jump in.

This future Dividend King is perfect for a retirement portfolio

Fortis (TSX:FTS)(NYSE:FTS) is still one of my favourite dividend stocks to target in a retirement portfolio. This St. John’s-based utility holding company has delivered dividend growth for 47 consecutive years. It is on track to become a Dividend King by the middle of this decade. A Dividend King is a stock that has achieved at least 50 straight years of annual dividend increases.

Shares of this dividend stock currently possess a price-to-earnings (P/E) ratio of 22. That puts Fortis in solid value territory compared to its industry peers. It offers a quarterly dividend of $0.535 per share, which represents a 3.6% yield.

Here’s an energy stock that will generate strong profits for decades to come

Suncor (TSX:SU)(NYSE:SU) is a Calgary-based integrated energy company. Last decade, former chief executive officer Steve Williams boasted that the company’s oil sands business had the potential to stand for a century. Shares of this dividend stock have climbed 20% in 2022 as of early afternoon trading on September 8. The stock is up 72% from the prior year.

The company released its second-quarter fiscal 2022 earnings on August 4. It delivered adjusted funds from operations (AFFO) of $5.34 billion, or $3.80 per common share — up from $2.36 billion, or $1.57 per common share, in the second quarter of fiscal 2021. Shares of Suncor currently possess a very favourable P/E ratio of 6.1. It offers a quarterly dividend of $0.47 per share. That represents a solid 4.6% yield.

Don’t sleep on this highly dependable telecommunications stock

Telus (TSX:T)(NYSE:TU) has been one of the best-performing telecommunications companies in Canada in recent years. This dividend stock has dropped 2.9% in the year-to-date period. Its shares are down 3.6% year over year. Telus is another stock that is a perfect target for a retirement portfolio in late 2022.

In Q2 2022, the company delivered operating revenue growth of 6.4% to $4.37 billion. Meanwhile, it reported adjusted net income of $422 million and $0.32 per diluted share — up 21% or 23%, respectively, from the previous year. This dividend stock last had a solid P/E ratio of 21. It offers a quarterly distribution of $0.339 per share, which represents a 4.7% yield.

One more reliable utility to won in your retirement portfolio

Hydro One (TSX:H) is a great way to round out our retirement portfolio in the beginning of September. This utility boasts a monopoly in the province of Ontario. Its shares are up 8.4% in the year-to-date period. The dividend stock is up 12% from the same time in 2021.

This company reported basic earnings per share of $0.43 in Q2 2022 — up 7.5% from the prior year. It reported total revenue of $3.88 billion in the year-to-date period compared to $3.53 billion in the first six months of 2021. Hydro One has delivered dividend growth in every year since its inception. It currently possesses a favourable P/E ratio of 20. It offers a quarterly dividend of $0.28 per share, representing a 3.1% 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 FORTIS INC and TELUS CORPORATION.

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