A comfortable retirement. That’s a goal that every investor can get behind, and fortunately, the market gives us plenty of options to help meet that goal. These buy-and-forget stocks can make the difference between working longer or retiring early.
Here are several options to consider adding to your TFSA today.
Forget the rental property. Buy this stock instead.
Establishing a rental property income stream is one of the most lucrative investment options to consider. Unfortunately, in recent years the price of buying real estate has soared, while interest rates have also surged.
As a result, the cost of acquiring a property and paying a mortgage has priced many would-be landlords out of the market.
An alternative for those prospective investors is to invest in RioCan Real Estate (TSX: REI.UN). RioCan is one of the largest REITs in Canada, with a growing portfolio of mixed-use residential properties.
Those mixed-use properties comprise residential towers sitting atop several floors of commercial retail. This not only minimizes the risk for investors when compared to owning a single property but can also provide a lucrative income.
RioCan pays out a monthly distribution, much like a landlord collecting rent. As of the time of writing, that distribution works out to a yield of 5.42%.
Canada’s big banks are always a great option to consider
Canada’s big banks offer stable domestic revenue streams, growing dividends, and an increasing focus on international expansion. Throw in a volatile 2023 with banks trading at discounted levels, and you have a win-win for long-term investors looking for a comfortable retirement.
Bank of Montreal (TSX: BMO), in particular, is an intriguing option to consider. Not only is BMO the oldest of the big banks, but it boasts nearly two centuries of dividend payments without fail.
Today that dividend works out to 4.98%, making it a great buy-and-forget option, without even mentioning growth.
Earlier this year, BMO completed the acquisition of U.S.-based Bank of the West. The deal bumps BMO’s operations into 32 state markets and adds hundreds of new branches and billions in new deposits and loans.
Prospective investors should also note that BMO, like much of the market, is down over the trailing 12-month period. As of the time of writing, BMO is down nearly 8%, making the discounted bank a must-have buy for investors looking for a comfortable retirement.
Renewable energy is the future and it pays out every month
Renewable energy stocks are great long-term options to consider. Not only do they offer the stability of a utility, but they also boast a very juicy income. Both criteria are key in establishing a buy-and-forget portfolio for a comfortable retirement.
That’s precisely why TransAlta Renewables (TSX: RNW) is a great option for investors to consider. TransAlta is one of the larger renewable energy stocks on the market, boasting a diverse portfolio and a juicy dividend.
Specifically, the company has facilities located across Canada, the U.S., and Australia. And like traditional utilities, those facilities are bound by long-term regulated contracts thar provide a recurring revenue stream. More importantly, they also provide a very appetizing dividend.
TransAlta’s dividend currently works out to an insane 7.72% yield, making it one of the better-paying options on the market. Additionally, TransAlta pays out on a monthly cadence. This means that investors with $20,000 to invest in TransAlta can expect to generate a monthly income of just over $125.
Remember that investors not ready to draw on that income yet can reinvest that income for further gains.
Looking for a comfortable retirement? Don’t waste time
One of the key aspects of long-term investing is starting early so that the stock and reinvestments have as much time to grow in value as possible. And while no stock is without risk, the stocks mentioned above offer some defensive appeal as well as significant growth prospects.
In my opinion, one or all of the stocks above should be part of a larger, well-diversified portfolio. Yes, a comfortable retirement is possible and easier than you think.
