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

Identifying the best Canadian dividend stocks can be an overwhelming task. Here are three options that can be a retiree’s best friend.

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Attaining a certain level of diversification is something that all investor’s hope to attain in their portfolio. Meeting that goal can be a difficult task for some newer investors, but fortunately, the market gives us plenty of opportunities. That includes some spectacular Canadian dividend stocks, which can be a retiree’s best friend. 

Earning income can be an easy thing 

Finding that perfect dividend stock to augment your portfolio doesn’t need to be too hard of an ask. For example, let’s take a moment to talk about Enbridge (TSX:ENB). 

Enbridge is one of the largest energy infrastructure companies on the planet. In fact, Enbridge operates the largest and most complex pipeline networks in the world. That pipeline network generates the bulk of Enbridge’s earnings in a very passive way, making a great investment option. 

To illustrate the sheer volume that the pipeline network hauls, let’s provide some context. Enbridge hauls nearly one-third of all North American produced crude and one-fifth of the natural gas needs of the U.S. market. 

Suffice to say, the segment provides Enbridge with significant defensive appeal, but that’s not all Enbridge offers. The company also boasts a growing renewable energy segment and operates one of the largest natural gas utilities on the continent.  

Turning to income, Enbridge offers a tasty quarterly dividend that carries an insane 6.73% yield. Not only is that yield one of the highest on the market, but Enbridge has also provided consecutive annual bumps to that dividend going back over three decades. 

You can bank on a growing dividend 

It would be hard to compile a list of the Canadian dividend stocks that are a retiree’s best friend without mentioning at least one of Canada’s big banks. And that big bank to consider adding to your portfolio is Bank of Montreal (TSX:BMO). 

BMO is neither the largest nor most well-known of the big banks, but it does offer investors solid growth and a juicy dividend.  

Long-term growth is fueled by BMO’s recent acquisition of U.S.-based Bank of the West. That deal, which closed earlier this year, increased BMO’s exposure to the U.S. market to 32 states, adding hundreds of new branches and billions in deposits.  

The deal also propelled BMO into position as the eighth largest lender on the continent. 

Turning to income, BMO has paid out a dividend to investors longer than any other bank in Canada. In fact, BMO has paid a juicy dividend to investors without fail for nearly two centuries. 

Today the yield on that dividend works out to a respectable 4.7%. 

Want a dividend stock to buy with massive defensive appeal?  

One final option for dividend-seeking investors to consider that can be a retiree’s best friend is BCE (TSX:BCE). 

BCE is one of the largest telecoms in Canada, but isn’t a pure play. In addition to offering the traditional bevy of subscription-based services, BCE also boasts a massive media segment. 

That media segment encompasses dozens of radio and TV stations that blanket the country in coverage. The segment also serves as a complementary revenue stream to the core subscription business. 

One key point that prospective investors should note is the defensive appeal of BCE. In the years since the pandemic began, the need for a fast and stable internet connection has only increased. In fact, for many still working and studying in a remote capacity, that need has become one of necessity. 

This has only increased what was already a very defensive investment option. 

As a dividend stock, BCE really justifies itself as one of the best Canadian dividend stocks on the market. Apart from providing a juicy quarterly dividend for well over a century without fail, BCE has a stellar record of annual increases that goes back well over a decade. 

Today that dividend works out to an appetizing 6.15%, making it one of the better-paying investments on the market.  

Will you buy these Canadian dividend stocks? 

All stocks carry risk, which is why it’s important to diversify your portfolio, especially during times of market volatility. Fortunately, all three stocks mentioned above offer some defensive appeal.  

In my opinion, one or all of the above would do well as part of a larger, well-diversified portfolio. 

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 Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

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