These 3 Canadian Dividend Stocks Are a Retiree’s Best Friend

Retirees need certainty in these next years, which is exactly what you can achieve from these three dividend stocks.

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Consistency. It’s what you want in life. A consistent routine. Consistent partner. A consistent paycheque. Yet, that last item, steady income, pretty much goes out the window when you reach retirement. And retirement is exactly when you want the most consistency.

No more stress. That’s the goal. No stressing about your daily tasks or job, and especially money. Which is why I’m hoping to remove at least part of that stress through investments in dividend stocks. Stocks that will become a retiree’s best friend.

iShares MSCI World Index ETF

First off, you need an index fund. And the iShares MSCI World Index ETF (TSX:XWD) is a great place to start. This gives you so much in one fund. Access to the global developed and emerging markets. A focus on long-term capital growth. Exposure to both large- and mid-cap companies.

And finally, it’s especially great if you focus on Canadian equities, and even domestic-focused funds. And this fund, in particular, offers exposure to underrepresented areas of investment in Canada, such as healthcare.

The fund has done quite well, up 215% in the last decade alone for a compound annual growth rate (CAGR) of 12.2%! Plus, you can bring in a nice little dividend yield of 1.36% as of writing, with a management expense ratio (MER) at 0.48%.

Canadian Utilities

Now what a retiree will also want is a dividend stock that grows. And for that you should go straight to the top and invest in Canadian Utilities (TSX:CU). This company is still the only stock on the TSX today that is a Dividend King. That means it’s increased its dividend each year for over 50 years!

Currently, the dividend stock has a yield at 4.96% at the time of writing this article. Plus, that dividend has grown at a CAGR of 5.2% in the last decade alone. As for shares, those are up by 45% in the last decade. That brings in a CAGR of 3.81% at the time of writing.

Since utilities will be needed no matter what the future brings, it’s safe to say retirees can look forward to more passive income coming their way. Perhaps growing for another 50 years or more.


Finally, retirees are likely already familiar with real estate investment trusts (REIT) as options as well. Yet, right now is a tricky time. In fact, it might be one of transition. Rising home prices and unaffordable housing is a real issue in Canada. And it’s causing many to consider staying put with rental units.

That’s why Canadian Apartment Properties REIT (TSX:CAR.UN) might be a great option. It invests in apartment properties in Canada and the Netherlands, both for purchase and rent. It currently has a dividend yield at 2.97% at the time of writing this article. A yield that’s grown by a CAGR of 2.69% in the last decade.

Shares have improved as well during that time, climbing 176% in the last 10 years. That’s brought in a CAGR of 10.7% to consider, with much of it coming in the last few years. And a share price jump certainly could happen again in this poor housing environment.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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