Retirees: 2 TSX Dividend Stocks That Reliably Pay You Cash

With strong underlying businesses, high-yielding dividends, and stable cash flows, these two TSX stocks can be excellent investments to consider.

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As a retiree, investing in growth stocks might entail more risk than you can tolerate. With no regular income, retirees must be careful with how they allocate their capital. Making risk-averse decisions is essential to protecting your money while generating returns on your investments. While not without their risks, the TSX boasts several high-quality stocks that are suitable for risk-averse investors.

Top-notch businesses with strong balance sheets, stable cash flows, and records of paying solid shareholder dividends are aplenty on the TSX. However, a few of them stand out as reliable dividend stocks for retirement income portfolios.

Today, I will discuss two dividend stocks you should consider if you are creating a self-directed passive-income stream.

Fortis

Fortis (TSX:FTS) is a $27.78 billion market capitalization utility holdings company. It owns and operates several electricity and natural gas utility businesses across Canada, the U.S., Central America, and the Caribbean. The energy infrastructure company has over 90% of its assets involved in long-term contracts to transmit and distribute natural gas and electricity to around three million customers.

Due to the regulated nature of the industry in Canada, utility businesses are low-risk investments. Generating predictable revenues, Fortis stock is more than capable of funding and growing its shareholder dividends regularly. While the higher-interest-rate environment has impacted its profitability, the Canadian Dividend Aristocrat looks well positioned to continue its dividend-growth streak.

Having increased payouts for almost 50 years, it is set to become a Dividend King soon. As of this writing, Fortis stock trades for $57.46 per share and boasts a 3.93% dividend yield that it pays quarterly. It can be a great way to generate more returns on your investment through dividend payouts.

Telus

Telus (TSX:T) is one of the leading players in the growing Canadian 5G space. The $37.58 billion market capitalization company is one of Canada’s largest telecom operators. Telecom companies are reliable defensive stocks due to the essential nature of their services.

Telus stock might not be the largest telecom provider in Canada, but it has an impressive 19-year dividend-growth streak that makes it a top pick to consider.

The company plans to invest $2.6 billion in growing its 5G and high-speed broadband services. With the support of these initiatives, the company’s management anticipates a double-digit increase in its revenue and adjusted earnings before interest, taxes, depreciation, and amortization. It looks well positioned to extend its dividend-growth streak to two decades.

Besides this, the company’s management is optimistic about its potential to generate around $ billion in cash flows, making it comfortable to fund and grow its shareholder dividends for years to come. As of this writing, Telus stock trades for $26.34 per share and boasts a juicy 5.52% dividend yield it pays out quarterly.

Foolish takeaway

With a solid track record of increasing shareholder dividends, strong balance sheets, and the ability to generate stable cash flows, Fortis stock and Telus stock are excellent investments to consider.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and TELUS. The Motley Fool has a disclosure policy.

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