How I’d Invest $50,000 in TSX Dividend Stocks for Retirement, If I Had to Start From Scratch

Here’s how you can create a robust portfolio of dividend stocks on the TSX to generate a passive income stream.

| More on:
funds, money, nest egg

Image source: Getty Images

While the stock market continues to remain volatile, dividend stocks provide a semblance of certainty amid all the chaos. Investors can create a recurring income stream by buying and holding shares of blue-chip dividend-paying stocks.

The dividend payouts can either be withdrawn or reinvested to purchase additional shares of the company. Further, over the long term, you should benefit from capital gains, too.

Here’s how I would invest $50,000 in dividend stocks for retirement if I were beginning my investment journey.

Top TSX dividend stocks to buy right now

Many companies pay investors a dividend, but not all of them are good bets. You need to buy shares of companies that have robust balance sheets and generate cash flows across business cycles. Additionally, the payout ratio should be sustainable, providing enough flexibility to increase dividends at a consistent pace.

Here are a few quality TSX dividend stocks you can consider buying with $50,000 right now.

Brookfield Renewable$36.66273$0.43$117.4Quarterly
TD Bank$86.66115$0.96$110.4Quarterly
Brookfield Infrastructure$44.66224$0.4825$108.08Quarterly
Fiera Capital$8.541,171$0.215$251.76Quarterly

Brookfield Renewable Partners

One of the largest players in the clean energy space, Brookfield Renewable Partners (TSX:BIP.UN) has already returned over 2,000% to investors in the last two decades. Despite these outsized gains, BIP stock currently offers shareholders a forward yield of 4.6%.

The shift towards renewable energy solutions globally will be a key driver of Brookfield’s earnings in the next decade. Notably, the company expects to return at least 9% to shareholders annually in the medium term.

Toronto-Dominion Bank

One of the largest banks in Canada, The Toronto-Dominion Bank (TSX:TD) should be on the shopping list of income-seeking investors. Currently, TD Bank stock is down 17% from all-time highs, allowing you to buy the dip.

The uptick in interest rates is likely to result in a surge in delinquency rates, but it might also drive the bottom-line higher.

Brookfield Infrastructure Partners

A company with a diversified base of cash flows, Brookfield Infrastructure (TSX:BIP.UN) is another blue-chip company you can buy and hold for market-beating gains over the long term. BIP stock is up almost 1,000% since its IPO in 2009 and offers investors a tasty dividend yield of 4%.


One of the largest pipeline companies in the world, Enbridge (TSX:ENB) provides investors exposure to the energy sector. Enbridge generates earnings across business cycles, and a majority of these cash flows are tied to long-term contracts.

ENB’s yield is over 6%, and it is among the most popular dividend stocks on the TSX.

Fiera Capital

A TSX stock with a forward yield of 9.8%, Fiera Capital (TSX:FSZ) is an asset management company. With over $150 billion in assets under management, Fiera Capital has managed to increase its revenue from $540 million in 2018 to $737 million in 2021.

The Foolish takeaway

An investment of $10,000 in each of these dividend stocks will allow investors to generate close to $3,000 in annual dividends. If these stocks are held in your TFSA, dividend payouts will be exempt from Canada Revenue Agency taxes.

You can use this article as a starting point in your investment journey. Begin by identifying similar fundamentally strong stocks and creating a portfolio of dividend stocks over time.

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 Aditya Raghunath has positions in Brookfield Renewable Partners and Enbridge. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable Partners, Enbridge, and Fiera Capital. The Motley Fool has a disclosure policy.

More on Dividend Stocks

edit Person using calculator next to charts and graphs
Dividend Stocks

Better Buy: Fortis Stock vs Enbridge

Fortis stock and Enbridge are top dividend stocks on the TSX today. Which stock is better buy for safe dividend…

Read more »

Canadian Dollars
Dividend Stocks

How to Make $1,500 in Passive Income 4 Times a Year

Blue-chip TSX stocks such as Enbridge can enable investors to create game-changing wealth over the long term.

Read more »

Dividend Stocks

TFSA: How to Easily Turn $10,000 Into $500/Year of Passive Income

You don't need to be a stock market expert to turn $10,000 into a $500 of tax-free passive income. Here's…

Read more »

protect, safe, trust
Dividend Stocks

Worried About a Recession? 2 TSX Blue-Chip Stocks to Protect Your Capital

If you fear a recession coming on soon, here are two blue-chip Canadian stocks to add to your portfolio for…

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

New TFSA Investors: 2 Top TSX Stock to Create a Self-Directed Retirement Fund

Top TSX dividend stocks are now on sale for new TFSA investors.

Read more »

money while you sleep
Dividend Stocks

Worried About the Market? 2 Dividend Stocks That Let You Sleep at Night

Here's why Restaurant Brands (TSX:QSR) and Enbridge (TSX:ENB) are two top dividend stocks to buy in this uncertain market right…

Read more »

money cash dividends
Dividend Stocks

How 1 Absurdly Cheap Stock Can Generate $100 in Monthly Passive Income

You can generate $100 or more in monthly passive income from one high-yield stock trading at an absurdly cheap price…

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

How I’d Invest $1000 in February to Make Easy Passive Income

Looking to earn some extra passive income in February but don't have much cash? Build an easy portfolio with these…

Read more »