These 4 Canadian Dividend Stocks Are Perfect for a Retirement Portfolio

Are you looking for dividend stocks to hold in a retirement portfolio? Here are four top picks!

| More on:
Path to retirement

Image source: Getty Images

If you’re interested in building a source of passive income, dividend stocks offer you an opportunity to do so. Fortunately, the Canadian stock market features many outstanding dividend companies for investors to choose from. In this article, I’ll discuss four top Canadian dividend stocks that investors should hold today. These stocks would also make great additions to a retirement portfolio.

Start with one of the best dividend stocks around

When it comes to Canadian dividend stocks, very few companies are able to stand alongside Fortis (TSX:FTS). For those that are unfamiliar, this company provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean.

Fortis is listed as a Canadian Dividend Aristocrat. That means the company has managed to increase its dividend distribution for at least five consecutive years. However, a quick look into this company’s history would reveal just how impressive it actually is. Fortis has raised its dividend-growth streak in each of the past 49 years. The company has already announced its plans to continue raising its dividend through to 2027 at a rate of 4-6%.

A reliable company for your portfolio

Canadian National Railway (TSX:CNR) is another stock that dividend investors should pay attention to today. This name should be very familiar to Canadians, as the company operates 33,000 kilometres of track that spans from British Columbia to Nova Scotia.

As far as Canadian Dividend Aristocrats go, Canadian National stands among the best. The company has increased its distribution in each of the past 26 years. Over that period, Canadian National’s dividend has exhibited a compound annual growth rate (CAGR) of just under 16%. That’s a very important number to take note of, as it suggests that the company does an excellent job of keeping its investors ahead of inflation. An inability to do so would result in a loss of buying power over time.

This stock has been paying investors for nearly 200 years

Investors should also consider companies that operate within Canada’s banking industry. That space features many outstanding dividend stocks, many of which have been paying shareholders for more than a century. Bank of Nova Scotia (TSX:BNS) stands out in my opinion for its outstanding dividend history.

The company first distributed a dividend on July 1, 1833. Since then, Bank of Nova Scotia has never missed a dividend payment. That represents nearly 190 years of continued dividend distributions. As of this writing, Bank of Nova Scotia stock offers investors a forward dividend yield of 6.25%. That represents outstanding bang for your buck today.

Another great stock to buy today

Finally, investors should consider buying shares in Brookfield Renewable (TSX:BEP.UN). As its name suggests, this company operates within the renewable utilities industry. It ranks as one of the largest producers of renewable utilities in the world, with a diversified portfolio of assets with a generation capacity of 25 gigawatts (GW). Brookfield Renewable’s development pipeline could add another 110 GW of generation capacity.

Like other stocks mentioned in this article, Brookfield Renewable is listed as a Canadian Dividend Aristocrat. The company has increased its dividend distribution in each of the past 11 years. It should be noted that throughout that 11-year dividend-growth streak, Brookfield’s dividend has grown at a CAGR of 6%. That helps investors stay ahead of inflation.

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 Jed Lloren has positions in Bank Of Nova Scotia, Brookfield Renewable Partners, and Fortis. The Motley Fool recommends Bank Of Nova Scotia, Brookfield Renewable Partners, Canadian National Railway, and Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »