Maximize Your Retirement Income With These Top Canadian Dividend Stocks

If you want to maximize your retirement income, you need to pick the right dividend stocks for the long term.

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Did you know that you can maximize your retirement income by adding the right dividend stocks to your portfolio? The market provides plenty of great options to start off with, including some stellar Canadian dividend stocks.

Here’s a look at three options to maximize your retirement income now.

Buy today and forget for a decade

Finding the right investment to buy today can make a huge difference in any future income stream. That’s part of the reason why Fortis (TSX:FTS) is a great option to consider buying today to maximize your retirement income.

Fortis is one of the largest utilities in North America. Utilities are one of the most defensive investment options on the market, owing to their unique and lucrative business model. In short, utilities generate a stable and recurring source of revenue, which is backed by long-term regulated contracts.

That revenue is also recession-resilient, which adds to that defensive appeal. As a result, Fortis is able to invest in growth initiatives as well as pay out a juicy dividend.

As of the time of writing, that dividend works out to a handsome 4.08%. This means that investors with $20,000 to invest in Fortis can expect a first-year income of just over $800. Keep in mind that investors not ready to draw on that income can reinvest it until needed, allowing it to grow further.

Adding to that appeal is the fact that Fortis has provided annual upticks to that dividend for an incredible 49 consecutive years. The company also has plans to extend that streak out for the next few years, which should appeal to long-term investors.

In short, Fortis is a great option to maximize your retirement income. Buy it now and let it grow for a decade or more.

You can bank on your income growing

It would be impossible to compile a list of stocks to maximize your retirement income without mentioning Canada’s big banks. And Bank of Montreal (TSX:BMO) is a big bank that should be on the radar of investors everywhere.

BMO is the oldest of the big banks and has been paying out dividends for nearly two centuries without fail. That level of consistency is hard to beat, and today that yield works out to a tasty 4.95% yield.

Using that same $20,000 example, investors can expect a first-year income of approximately $970. And like Fortis, BMO has an established precedent of providing annual upticks to that payout.

Turning to growth, BMO is full of potential. Earlier this year, BMO completed the acquisition of California-based Bank of the West. The deal enlarged BMO’s U.S. footprint to 32 states and added hundreds of new branches to its network.

It also propelled BMO into a position as one of the larger lenders in the U.S. market.

Prospective investors should also note that market volatility has also pushed BMO down nearly 4% over the trailing 12-month period.

This means investors can pick up a great Canadian dividend stock to maximize your retirement income at a discount.

Power up your portfolio

Another Canadian dividend stock to consider is Enbridge (TSX:ENB). The energy behemoth is best known for its pipeline network, but in recent years Enbridge has diversified more into renewable energy. The company also operates one of the largest utilities on the continent.

Enbridge’s renewable energy segment comprises a growing portfolio of facilities located across Europe and North America. The company has dropped $8 billion into that growing segment over the past two decades.

Turning to income, Enbridge offers investors a quarterly yield that works out to an insane 7.37%. This means that a $20,000 investment will generate an income of over $1,460 in just the first year.

And like the other investments noted above, investors that aren’t ready to draw on that income can reinvest it, allowing it to grow until needed. Enbridge has also provided annual increases to that yield for 28 consecutive years.

Maximize your retirement income

No stock is without risk. Prospective investors looking to maximize their future income streams should invest early for that necessary long-term growth.

In my opinion, the three stocks mentioned above will do exactly that, making them perfect long-term options to maximize your retirement income.

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 Demetris Afxentiou has positions in Enbridge and Fortis. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

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