A report from the Bureau of Labor Statistics in the U.S. states that in retirement, households experience an average shortfall of $4,000 each year. It suggests the expenses of seniors exceed their income by $4,000 annually. So, it makes sense to find ways to increase your income to outpace inflation and take care of other emergency expenses such as healthcare.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Enbridge | $49.65 | 322 | $0.8875 | $286 | Quarterly |
| Telus | $24.66 | 649 | $0.3625 | $235 | Quarterly |
| Canadian Utilities | $34.23 | 467 | $0.449 | $210 | Quarterly |
| TransAlta Renewables | $13.44 | 1,190 | $0.078 | $92.8 | Monthly |
If you can afford to invest $64,000, these four TSX stocks can help you generate over $4,000 in annual dividend income.
Enbridge stock
An energy infrastructure company, Enbridge (TSX: ENB) offers investors a tasty dividend yield of 7.15%. While Enbridge is part of the cyclical energy sector, a majority of its cash flows are tied to long-term contracts. Further, these contracts are backed by investment-grade counterparties and indexed to inflation, making Enbridge relatively immune to fluctuations in oil prices.
Enbridge continues to invest in capital expenditures, which should drive future cash flows and dividends higher. It has already raised dividends each year for 28 consecutive years at an annual rate of 11%.
Priced at 16.5 times forward earnings, ENB stock is trading at a discount of 20% to consensus price target estimates. After adjusting for dividends, total returns should be closer to 27%.
Telus stock
A telecom giant, Telus (TSX: T), is the perfect stock to supercharge your retirement portfolio. Similar to companies across sectors, Telus is impacted by rising interest rates that have resulted in reduced profits. But its capital expenditures are also decelerating this year, as the company completed the majority of its copper-to-fibre transition in 2022.
Telus stock currently offers shareholders an annual dividend of $1.45 per share, translating to a forward yield of 5.9%. These payouts have risen at an annual rate of 13% since 2003.
Bay Street expects Telus stock to surge by 20% in the next 12 months.
Canadian Utilities stock
A utility heavyweight, Canadian Utilities (TSX: CU) is a Dividend King, a company that has increased dividends each year for at least 50 consecutive years. It pays shareholders a dividend of $1.79 per share each year, indicating a yield of 5.24%.
With $22 billion in assets and $4 billion in annual revenue, Canadian Utilities reported adjusted earnings of $655 million in 2022. It also deployed $1.4 billion in capital expenditures to expand its base of cash-generating assets.
Due to its strong financials and consistent dividend hikes, Canadian Utilities has returned over 9% annually to investors in the last 20 years, easily outpacing the TSX index.
TransAlta Renewables stock
The final dividend stock on my list is TransAlta Renewables (TSX: RNW), which pays investors a monthly dividend of $0.078 per share, which amounts to a yield of 7%. One of the largest clean energy companies in Canada, TransAlta has facilities in Canada, the U.S., and Australia. Its clean energy portfolio includes solar, wind, gas, and hydro.
As is the case with other utility companies, TransAlta Renewables has long-term power-purchase agreements allowing it to generate stable cash flows across market cycles. Its recurring revenue stream enables the company to reinvest in growth, strengthen its balance sheet and pay shareholders a dividend.
