Investors have a huge strategy change on their hands when they near retirement. What started out as long-term holding now means keeping cash on hand, and creating new income streams to dip into at anytime.
That’s why today we’re going to focus on the best stocks investors will want to buy before and during retirement. Ones that are safe strategies with a long-term growth opportunity ahead, while still adding passive income to your portfolio today. So let’s get right into them.
CAPREIT
There has been a major shift towards renting over buying in Canada, and frankly, it’s about time. Yet, it still doesn’t solve the issue of housing availability in Canada. That means there is a major opportunity as more and more units are created in the country, and one that Canadian Apartment Properties REIT (TSX: CAR.UN) will be a part of.
CAPREIT stock has been around for years, remaining a strong investment for those seeking passive income today. Shares have traded up about 12% in the last year, and 29% in the last nine months alone. As shares continue to climb, and interest rates remain up, short-term growth is likely ahead for the stock.
Long-term, however, there is even more of a growth opportunity. More Canadians are looking to rent instead of buy, and CAPREIT stock has a major foothold in this area. Plus, it continues to offer a diversified portfolio with other assets across the globe.
Investors can therefore bring in a 2.74% dividend yield as of writing. This will add not only growth but passive income for the near and long term. That will certainly help you sleep well at night throughout your retirement.
BMO stock
One of the safest investments Canadians can make is through the Big Six Banks. These institutions have been around for decades, and in the case of Bank of Montreal (TSX: BMO) over 200 years! That’s safety if you’re looking for it, and then some.
Banks also offer the oligopoly of safety from the Big Six Banks, with far less competition in Canada. Further, there hasn’t been a banking crisis since 1840, with Canadians keeping their cash safe in investments throughout the Great Depression and Recession. But when it comes to all six banks, BMO stock offers a fantastic deal, and dividend, as well as growth.
BMO stock managed to sneak in a huge deal when it purchased Bank of the West, providing a new revenue stream to investors to consider. What’s more, it remains in value territory trading at 12.2 times earnings and 2.8 times sales, while shares are down 6% in the last month. Yet it’s already been improving, up 4% in the last month alone.
With a dividend yield still above its five-year average of 4.14% at 4.6% as of writing, it’s a solid time to buy up this stock for retirement. You can gain decades of stable growth, especially as it continues to expand in the United States. All while bringing in passive income for the rest of your days.
