For many investors, one of the most difficult aspects of investing is establishing a stable and growing retirement income stream. To do this, investors need to select one or more dividend-paying investments.
Fortunately, the market does provide an ample choice of some great Canadian dividend stocks that can provide a growing retirement income.
Here’s a look at several options to consider buying for your portfolio today.
Invest in a telecom today for a juicy retirement income tomorrow
Canada’s telecoms are superb long-term income investments. Backed by a defensive business model, they can also provide an intriguing source of growth. But what telecom should you turn to for a source of retirement income?
That would be BCE (TSX:BCE). BCE boasts one of the largest networks in Canada — coverage that blankets the country from coast to coast. BCE also operates a massive media segment, which includes dozens of radio and TV stations.
In other words, BCE is a defensive investment that boasts multiple revenue stream. And that’s not even the best part.
BCE has been paying out a juicy quarterly dividend for over a century. As of the time of writing, the yield on that dividend works out to a tasty 6.26%. This means that investors who drop $30,000 into BCE (as part of a larger, well-diversified portfolio) can expect a first-year income of over $1,870.
Also worth noting is that BCE has an established cadence of providing an annual bump to that dividend going back over a decade.
Renewable energy can provide a growing income stream
Renewable energy stocks continue to grow in importance. Like their fossil fuel-burning peers, they also boast a stable business model, which is backed by long-term, regulated contracts.
The one key difference to note is that renewable energy providers aren’t strapped with the massive transitional costs traditional utilities have. This makes them unique investments to consider buying now and holding for the long term.
One such example to consider investing in now to augment any retirement income stream is TransAlta Renewables (TSX:RNW). TransAlta operates a portfolio of over 40 facilities located across the U.S., Canada, and Australia.
In terms of income, TransAlta provides investors with a very appetizing 7.36% yield. Even better, that dividend is paid out on a monthly basis. This means that investors with $20,000 to invest in TransAlta can expect a monthly income of just over $120.
As a reminder, prospective investors not ready to draw on that retirement income stream just yet can reinvest that income until needed. This will allow that future income to grow further.
Banking on all of the banks for passive income
Canada’s big banks are almost always a great long-term option to consider. Even during times of market volatility, the banks have emerged stronger and fared better than their U.S.-based peers.
But which of the big banks should investors consider to augment their retirement income? An intriguing option to consider is BMO Covered Call Canadian Banks ETF (TSX:ZWB), which includes all of the big banks as investments.
Not only does this make sense from a diversification standpoint, but another key point is that the exchange-traded fund pays its distribution on a monthly cadence. Even better, the monthly distribution currently sits at $0.12, which translates into an insane 8.15% yield.
Boost your retirement income
Finding the right mix of investments to establish a viable retirement income stream takes time. Fortunately, the investments mentioned above offer juicy yields and some defensive appeal.
In my opinion, one or all of the above should be part of a larger, well-diversified portfolio.