Finding that perfect mix of income stocks that can produce a reliable retirement income can be a daunting task for new investors. Fortunately, that market gives us plenty of options to consider, including these dividend-paying gems.
This future Dividend King is a must-have
Utilities are some of the best long-term investments on the market. Part of the reason for that statement comes down to the lucrative business model that they adhere to. Specifically, utilities generate a stable and recurring revenue stream that is backed by long-term regulated contracts.
Often, those regulated contracts can span decades, which allows them to pay out a generous and stable dividend. This factor alone makes utilities viable options to establish a reliable retirement income stream.
Fortis (TSX:FTS) is a utility that offers all of that and more. Fortis is one of the largest utilities on the continent. The utility boasts an impressive footprint with 10 operating regions across Canada, the U.S., and the Caribbean.
Turning to dividends, Fortis has an incredible streak of 49 consecutive years of annual upticks to its dividend. In fact, Fortis is on track to hit 50 consecutive years of increases later this year. When that next increase occurs, Fortis will become only the second Dividend King in Canada with 50 consecutive years of increases.
As of the time of writing, Fortis offers a respectable 3.98% yield and trades just under $58.
This stock offers a century of paying dividends
Utilities aren’t the only long-term defensive picks that offer a generous dividend. Canada’s telecoms also balance a defensive offering with a handsome dividend. And BCE (TSX:BCE) in particular is the one telecom that should be on the radar of investors looking for a reliable retirement income source.
BCE is one of the largest telecoms in Canada and boasts enviable nationwide coverage for its core subscription offerings. The telecom also operates a massive media empire that comprises dozens of TV and radio stations across the country.
Prospective investors should note that the defensive appeal of BCE has grown in the years since the pandemic started. Specifically, the need for a constant and fast internet connection has become one of necessity for students and workers still operating in a remote or hybrid capacity.
And perhaps best of all, BCE has provided a juicy dividend to investors for well over a century. Today, that dividend works out to an attractive 6.34% yield, handily making it one of the better-paying options on the market.
Canada’s big banks can provide big long-term income
It would be nearly impossible to compile a list of investments to help generate a reliable retirement income without mentioning Canada’s big banks.
And that bank for investors to consider is Canadian Imperial Bank of Commerce (TSX:CM). CIBC is not the largest or most well known of Canada’s big banks, but it does offer a few unique advantages over its peers.
CIBC’s smaller international footprint means that the bank has a larger domestic segment. More specifically the bank has a larger mortgage book when compared to its larger peers. Over the past year, this has pushed the stock price down thanks to overall volatility.
That being said, Canada’s big banks are renowned for weathering financial volatility when compared to their U.S.-based peers. If anything, long-term investors can expect CIBC to resume growing, Making this current bout of volatility a great discount opportunity.
As of the time of writing, CIBC trades at just over $55 and offers a juicy yield of 6.28%. Worth noting is that CIBC’s impressive yield is also one of the highest among its bank peers.
A reliable retirement income stream is possible
Investors should know that there is no such thing as an investment without risk. Fortunately, in the case of the three stocks above, they offer defensive appeal in addition to a reliable retirement income.
In my opinion, one or all of these stocks belong in part of a larger well-diversified portfolio.