Want a Stress-free Retirement? Invest in These Canadian Dividend Stocks

Investors seeking a stress-free retirement should invest in one or more of these Canadian dividend stocks for long-term income potential.

| More on:
Two seniors float in a pool.

Source: Getty Images

Establishing a stable and recurring revenue stream is one of the primary goals of any well-diversified portfolio. In doing so, investors can look forward to a stress-free retirement. But what Canadian dividend stocks can provide that income stream?

Fortunately, the market gives us plenty of dividend options to consider. Here are some of those great income-producers that can help build a portfolio for a stress-free retirement.

A defensive income-producer to buy and forget

One of the key elements to a stress-free retirement is establishing a diversified and stable income stream. Defensive stocks such as utilities are great examples to consider. The reason for that defensive appeal stems from the lucrative business model that utilities adhere to.

In short, utilities provide a necessary service that is backed by long-term regulated contracts. In many cases, those contracts span several decades in duration, which translates into a stable revenue stream.

And that defensive utility for investors to consider right now is Canadian Utilities (TSX:CU). Prospective investors should also note that Canadian Utilities is also the only Dividend King in Canada, with a whopping 51 consecutive years of increases.

Today that yield works out to 4.72%.

A bank with growth and income-producing potential

Canada’s big banks are almost always a great option for investors looking to achieve a stress-free retirement. Bank of Nova Scotia (TSX:BNS) is unique among its peers, and should be on the radar of investors everywhere.

Like its peers, Scotiabank offers a strong domestic segment and a growing presence internationally. Where it differs from the other big banks is where Scotiabank has expanded. Rather than focusing on the U.S. market like its peers, Scotiabank opted for the Latin American markets of Mexico, Columbia, Chile and Peru.

Those four nations are party to a trade bloc known as the Pacific Alliance, which is charged with improving trade and reducing tariffs. Scotiabank’s presence in each country helped the bank become a recognizable and trusted partner across the region.

Turning to income, Scotiabank boasts the highest yield of its peers, which as of the time of writing works out to a juicy 6.19%.

A telecom building for the future

Another area to consider investing in for a stress-free retirement is Canada’s telecoms. Like utilities and banks, telecoms provide a necessary service and generate a predictable revenue stream. And that telecom to consider investing in right now is BCE (TSX:BCE).

BCE isn’t just one of the largest telecoms in Canada. The company also boasts a massive media segment that encompasses dozens of TV and radio stations across the country. This provides BCE with an additional revenue stream that is complementary to its core subscriber-based offerings.

Telecoms are incredibly defensive investments, and that defensive appeal has grown in the past few years. In short, the pandemic sped up the transition to an online-first model for commerce, and necessitated workers and students operate in a remote capacity.

While stores are open and schools are back to in-person learning, there are some that continue to remain in a remote or hybrid capacity. This adds to the overall defensive appeal of a telecom.

Turning to income, BCE has offered a juicy quarterly dividend for well over a century without fail. Today the yield on that dividend works out to 6.10%, making it one of the best income options on the market.

And like the other stocks mentioned above, BCE has an established history of providing annual bumps to that dividend.

You can have a stress-free retirement

No investment, even the most defensive, is without some risk. Fortunately, all three of the companies mentioned above are established leaders in their respective fields with decades of experience.

In my opinion, one or all of these stocks should form a core 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 Bank of Nova Scotia. The Motley Fool recommends Bank of Nova Scotia. The Motley Fool has a disclosure policy.

More on Dividend Stocks

A close up image of Canadian $20 Dollar bills
Dividend Stocks

2 TSX Dividend Stocks With Yields Above 7% That You Can Buy With $100

Here are two high-yielding TSX dividend stocks you can buy with less than $100 per share today and hold for…

Read more »

oil and gas pipeline
Dividend Stocks

Should You Buy Enbridge Stock on a Pullback?

Down 25% from all-time highs, Enbridge stock remains a top investment choice due to its diversified business and steady cash…

Read more »

Redwood trees stretch up to the sunlight.
Dividend Stocks

2 Fantastic Growth Stocks to Buy Right Now

These two growth stocks aren't your average growth stocks, as shares rise higher and higher after earnings, and more's to…

Read more »

Businessmen teamwork brainstorming meeting.
Dividend Stocks

1 Magnificent Dividend Stock Down 15% to Buy and Hold Forever

Enbridge is off the 12-month lows but still trades at a large discount to its 2022 high.

Read more »

Increasing yield
Dividend Stocks

My Top 5 Ultra-High-Yield Dividend Stocks to Buy in May

If you’re looking to build a passive-income stream, these five dividend stocks should be on your radar.

Read more »

Payday ringed on a calendar
Dividend Stocks

A 10.6% Dividend Stock That Provides Monthly Cash Payments

A dividend stock with a mouth-watering yield providing monthly cash flow streams.

Read more »

Dividend Stocks

The Top Canadian REITs to Buy in May 2024

These three REITs have envious growth potential and trade cheaply today, making them three of the top Canadian stocks to…

Read more »

Young woman sat at laptop by a window
Retirement

Why I Can’t Stop Buying Shares of This Magnificent High-Yield Stock in My Retirement Account

This utility is an excellent retirement stock, providing juicy income, income growth, and wealth creation for the long haul!

Read more »