Every investor wants to retire with a steady income. To do so, investors need to establish a stable and recurring income stream from a variety of sources. Fortunately, the market provides us with plenty of options to help accomplish that goal.
Here are some of the best dividend stocks to help you retire with a steady income.
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A steady income is what this company does best
To achieve the goal to retire with a steady income, investors need to seek out stocks that can not only provide a recurring income today but also for the longer term.
And that’s precisely why the first stock on this list is Fortis (TSX:FTS). Fortis is one of the largest utilities in North America with operations in Canada, the U.S., and the Caribbean.
Utilities are renowned for their defensive prowess and ability to provide a recurring and growing income over the longer term. In fact, Fortis not only checks that box but offers more. The company has provided annual bumps to its dividend for an incredible 49 consecutive years without fail.
Today, that dividend works out to a juicy 4% yield. This means that a $20,000 investment will generate an income of $800 in the first year. That’s not all. Further growth of that dividend over the long term will help investors retire with a steady income.
Massive income and massive upside
Another compelling option to consider that could help you retire with a steady income is Enbridge (TSX:ENB). Enbridge is best known for its massive pipeline network. That sprawling pipeline network, which is the largest on the planet, generates the bulk of Enbridge’s revenue.
And thanks to the massive volume of crude and natural gas involved, Enbridge is one of the most defensive operations on the continent. To illustrate that defensive appeal, Enbridge transports one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.
Incredibly, that’s not all Enbridge does.
Enbridge has invested over $8 billion into its renewable segment over the past two decades. Today, that segment comprises a growing number of facilities in Canada and Europe and is steadily growing in importance and revenue.
Perhaps most importantly, Enbridge offers one of the juiciest dividends on the market. As of the time of writing, the quarterly dividend carries an insane yield of 7.22%. This means that a $20,000 investment will earn over $1,400 in just the first year.
Let’s not forget that Enbridge has provided annual consecutive upticks to that dividend for over two decades.
Earn a steady income from this bank
Canada’s big banks are superb long-term options to buy. And Canadian Imperial Bank of Commerce (TSX:CM) represents a great opportunity for investors that want to retire comfortably.
CIBC isn’t the largest of the big banks, but it does offer something unique to investors. That comes in the form of a juicy dividend and long-term potential while trading at a good discount. Part of the reason for that discount comes thanks to CIBC’s larger domestic mortgage book amid rising interest rates.
What prospective investors should note is that Canadian banks have historically weathered financial slowdowns better than their U.S. peers. In other words, investors should see the 11% dip in the past 12-month period as an opportunity.
That dip has also helped CIBC’s dividend swell to an appetizing 6.04%. This makes it one of the better options for income investors right now. It’s also one of the highest yields across the big banks.
You can retire with a steady income
No stock is without risk. Fortunately, the stocks above offer both a mature standpoint and defensive appeal to both new and seasoned investors alike.
In my opinion, one or all of the above stocks should be part of a larger, well-diversified portfolio.
