TFSA Investors: The 3 Best Dividend Stocks for Retirement

Retirement brings on a whole new list of challenges, and one of those is shifting more towards upfront payments from dividend stocks.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 3, 2022 9:00 am EDT

If you’re entering retirement or are already living the dream, then it’s time for you to start shifting your focus. It’s a different time than it was 20 years ago, when you wanted conservative returns that could last you decades. While you still want to protect your income, you also need more of it without a job. So, that means looking for dividend stocks that will pay you big bucks to own them.

However, you also want dividend stocks that aren’t going to suddenly disappear overnight. That’s why today, I’m going to recommend three dividend stocks that are perfect for a retirement lifestyle. Each offers you stellar passive income, while also proving that they’ll be around for the next decade at least.

Slate Grocery REIT

A top choice for income from dividend stocks right now is Slate Grocery REIT (TSX: SGR.UN). Slate is a strong option, as it operates grocery chains throughout the United States. It continues to expand its operations as well, acquiring new businesses on a regular basis.

It helps that the company remained open, even during the pandemic, offering essential services from its grocery sales. Therefore, it’s now sitting on a tonne of cash to reinvest in properties, while maintaining a stellar dividend.

Among dividend stocks it has one of the highest yields — currently at 8.25%! Plus, it trades at just 6.11 times earnings, making it a stellar deal. So, if you need $1,000 in passive income each year, that would take an investment of $12,059 on the TSX today.

NorthWest REIT

While it may not be old, NorthWest Healthcare Properties REIT (TSX:NWH.UN) has the proof to show it’ll be around a long time. That again comes from providing essential services, with healthcare properties that include hospitals, office buildings, and even parking garages. Plus, these properties are located around the world, providing diverse income from a variety of sources.

Because of this, again NorthWest stock is one of the dividend stocks offering stability. This comes from providing a 97% occupancy rate, with an average 14.1-year lease agreement from its tenants. That’s over a decade of stable income coming in, and all at an ultra-high yield.

How high? NorthWest stock currently offers a dividend yield at 7.49%. It currently trades at just 6.16 times earnings, with just 88.37% of equity needed to cover all its debts. So, if you want to bring in strong income of $1,000 per year, right now it would take an investment of $13,475.

TransAlta Renewables

Another great option from dividend stocks is TransAlta Renewables (TSX: RNW), and this is for a few reasons. TransAlta offers you exposure to the natural gas sector, where prices continue to climb. However, it also provides exposure to renewable energy, as it operates solar, hydro, and wind assets around the world.

Because of this, TransAlta is a great choice among dividend stocks. You can look forward to increasing growth in the next few decades from the shift to clean energy. However, you can also lock in a strong dividend yield at 6.48% as of writing!

The company is in a strong position, with just 49.23% of equity needed to cover all of its debts right now. That’s excellent for any energy stock. As for its dividend, you can lock in that yield today and pay $15,585 for $1,000 in passive income.