During retirement, Canadians will have the opportunity to receive a pension. In most cases, your pension won’t be enough to cover all your expenses. In that case, you’ll need to find ways to supplement your income. One way to do that is by investing in dividend stocks within a Tax-Free Savings Account (TFSA). If done successfully, Canadians could receive a massive amount of passive income tax-free. That could help you get by more comfortably during retirement.
Here, I discuss three TSX stocks under $100 you could buy today.
This asset management company should be in your portfolio
Brookfield Asset Management (TSX:BAM) is the first stock that I think pensioners should consider buying today. For those who are unfamiliar, this is the new Brookfield Asset Management. By that, I mean that it’s strictly the asset management segment of the now-named Brookfield Corporation. Despite only representing a smaller portion of Brookfield’s overall business, I still think it’s worth holding in your portfolio.
The reason I think pensioners should consider holding shares of Brookfield Asset Management as opposed to Brookfield Corporation is because the former offers a much higher forward dividend yield (3.25%). In retirement, dividend yield is a fairly important statistic to keep in mind since higher-yielding stocks will give you the most bang for your buck. Because this company is a Brookfield-family stock, I feel confident that it’ll be able to comfortably continue paying shareholders for a long time.
A proven dividend stock
Pensioners should also consider investing in Bank of Nova Scotia (TSX:BNS) in a TFSA. This company needs very little introduction. As a component of the Big Five, Canadians should be very familiar with this company. Bank of Nova Scotia is one of the largest Canadian banks in terms of assets under management, market capitalization, and revenue.
Bank of Nova Scotia stands out as a dividend stock because of its long history of paying shareholders. The company first instituted a dividend on July 1, 1833. Since then, the company has never missed a dividend payment. That represents 190 years of continued dividend distributions. Think of how many negative events have affected the market over those 190 years. Throughout that entire period, Bank of Nova Scotia’s management has managed to intelligently allocate its capital and reward shareholders.
This company could boost your passive income
Finally, pensioners should consider investing in Fortis (TSX:FTS). This company provides regulated gas and electric utilities to customers in Canada, the United States, and the Caribbean. As of this writing, Fortis serves more than three million customers. Utility companies should be very attractive to pensioners, generally, because of their tendency to generate revenue on a recurrent basis.
Fortis stands out among its peers, in my opinion, because of its ability to increase its dividend each and every year. The company currently maintains a 50-year dividend-growth streak. That’s the second-longest active streak of its kind in Canada. Fortis has already announced its plans to continue raising its dividend at a rate of 4% to 6% through to 2028.
