The baby boomer generation has started to steadily slip into retirement. In some cases, this may trigger the anxieties of younger demographic cohorts like Generation X or the Millennials. The decline of defined-benefit pension plans in the private sector means that many more investors will be on their own in shaping their retirement income.
Today, I want to look at three top Canadian dividend stocks that are a nice start for investors building a makeshift retirement portfolio. Let’s dive in.
This undervalued dividend stock is worth stashing for your retirement
Telus (TSX:T) is the first Canadian dividend stock I’d look to add to our hypothetical retirement portfolio today. This Vancouver-based company provides a range of telecommunications and information technology products and services in Canada. Its shares have dropped 8.3% month over month as of early afternoon trading on May 30. That has pushed the stock into negative territory so far in 2023.
This company released its first-quarter (Q1) fiscal 2023 earnings on May 4. Total mobile and fixed customer growth reached 163,000 — up 15,000 compared to the previous year. Meanwhile, operating revenues climbed 15% year over year to $4.92 billion. However, adjusted net income dipped 7% to $386 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 10% to $1.77 billion.
Shares of this dividend stock have dropped 8.2% over the past month. That has thrust Telus into the red in the year-to-date period.
Here’s a Canadian Dividend King that you can trust for the long haul
Fortis (TSX:FTS) is a St. John’s-based utility holding company. This dividend stock has dropped 4.1% month over month at the time of this writing. However, its shares are up 3.1% so far in 2023. Investors can see more of Fortis’s recent performance with the interactive price char below.
Investors gearing up for retirement should target dividend stocks that promise long-term stability. Fortis currently offers a quarterly dividend of $0.565 per share, which represents a 3.9% yield. This company has achieved 49 consecutive years of dividend growth. The stock is on the cusp of becoming the second Dividend King on the TSX. Moreover, Fortis’s aggressive capital-spending plan aims to expand its dividend-growth streak for several more years to come.
This dividend stock has dropped 4.1% over the past month. The stock is still up 3.1% so far in 2023. Retirement investors can feel good about owning this future Dividend King.
One more top dividend stock I’d add to a retirement portfolio
Empire Company (TSX:EMP.A) is the third dividend stock I’d target for retirement investors today. Grocery retailers have proven dependable in the first third of this decade. This Stellarton-based company is engaged in the food retail and related real estate businesses across Canada. Shares of this dividend stock have dropped 2.3% so far in 2023.
In Q2 fiscal 2023, earnings per share rose to $0.73 compared to $0.66 in Q2 fiscal 2022. The company announced that it would sell its retail fuel sites in Western Canada for $100 million. Shares of Empire currently possess a favourable price-to-earnings ratio of 13. Meanwhile, it offers a quarterly dividend of $0.165 per share, representing a modest 1.8% yield.
