3 Great Canadian Dividend Stocks to Build Retirement Wealth

These three Canadian dividend stocks could help you build wealth faster for your golden years of retirement.

| More on:

Source: Getty Images

Building wealth for retirement requires years of consistent saving and investing in quality assets that generate reliable income. One of the best ways to achieve this goal is to own Canadian dividend stocks for the long term that have a history of delivering stable payouts and operate in resilient industries.

Canada has a number of such companies that are well-suited for retirement portfolios. Here are three great Canadian dividend stocks that could help you build wealth for your golden years of retirement.

Pembina Pipeline stock

Pembina Pipeline (TSX:PPL) stock has seen around 10% gains so far in 2024 to currently trade at $50.02 per share with a market cap of $28.9 billion. This Calgary-headquartered energy infrastructure firm provides a range of energy transportation and midstream services. At the current market price, PPL stock offers a decent 5.5% annualized dividend yield, and it has raised its annual dividend payouts by around 61% in the 10 years ended in 2023.

In the first quarter, Pembina posted a record quarterly adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of around $1.04 billion, reflecting a strong 10% YoY (year-over-year) increase. To add optimism, its adjusted EBITDA margin in the latest quarter also jumped to a solid 67.8% compared to just 41.2% a year ago.

Pembina’s consistent focus on strategic acquisitions and expansion with the help of new projects brightens its long-term growth outlook, making it an ideal Canadian dividend stock to build retirement wealth.

Canadian Imperial Bank stock

Canadian Imperial Bank of Commerce (TSX:CM) is another top dividend stock on the Toronto Stock Exchange you may want to add to your retirement portfolio right now. It currently has a market cap of $60.2 billion as its stock trades at $66.15 per share after rallying by about 20% over the last year. It has a 5.4% annualized dividend yield at the current market price, and the bank has raised its dividends by around 81% in the last 10 years between its fiscal year 2013 and 2023 (ended in October 2023).

In the April 2024 quarter, Canadian Imperial Bank’s revenue rose 8.1% YoY, helping the bank deliver around 3% positive growth in adjusted quarterly earnings. Although like most other banks, higher provisions for credit losses have affected its profitability of late, its strong capital ratios and solid balance sheet give it enough headroom to keep rewarding its shareholders with generous dividends even amid such temporary macroeconomic uncertainties.

Great-West Lifeco stock

Great-West Lifeco (TSX:GWO) is a Winnipeg-based company with a main focus on financial services like life and health insurance, asset management, and retirement solutions. After rising by around 5% over the last year, GWO stock currently trades at $39.09 per share with a market cap of $36.5 billion. This Canadian dividend stock, which is also a part of the TSX Composite Index, offers a 5.7% annualized dividend yield at the current market price. Over the last 10 years ended in 2023, GWO stock’s dividend per share has gone up by nearly 72%.

In the first quarter of 2024, improved market conditions and strategic business growth helped Great-West Lifeco report record adjusted earnings of $1.09 per share, up 25.3% YoY. Although the ongoing macroeconomic challenges could keep its stock volatile in the short term, its strong regulatory capital positions, along with its focus on investments in technology and integration of new businesses, could help it grow at a faster pace in the long run. These positive factors make it an excellent Canadian stock to buy right now, especially if you want to earn safe dividend income to build retirement wealth.

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.

The Motley Fool recommends Pembina Pipeline. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Retirement

RRSP (Registered Retirement Savings Plan) on wooden blocks and Canadian one hundred dollar bills.
Retirement

RRSP Investors: Buy These Top Dividend Stocks for Total Returns

These dividend stocks still look cheap.

Read more »

financial freedom sign
Retirement

Want $1 Million in Retirement? Invest $10,000 in These 3 Stocks and Wait a Decade

What would it take to convert $10,000 into $1 million? Let’s do the math and see stocks that have the…

Read more »

edit Balloon shaped as a heart
Retirement

3 Stocks Retirees Should Absolutely Love

These three dividend stocks are perfect for retirees wanting not just income, but growth in shares for the foreseeable future.

Read more »

Close up of an egg in a nest of twigs on grass with RRSP written on it symbolizing a RRSP contribution.
Dividend Stocks

2 Top Canadian Dividend Stocks for RRSP Investors 

No matter how much you save, you may wonder if it is enough to retire. These dividend stocks can give…

Read more »

Increasing yield
Retirement

3 High-Yield Dividend Stocks for Retirees

Top TSX dividend stocks are on sale.

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Retirement

We’re Only Getting Older: A Top TSX Stock That Benefits From an Aging Population

Here's why Chartwell Retirement Residences (TSX:CSH.UN) could be a successful turnaround story to invest in as Canadian grow older

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Retirement

Retirees: What Is the CPP Enhancement and How Does it Work?

The CPP enhancement will increase your pension payout in retirement. But you still need other income sources to supplement the…

Read more »

Path to retirement
Retirement

Invest in These TFSA Stocks to Sail Into a Serene Retirement

Is your TFSA set for safety or growth? Having these solid TFSA stocks provides a blend of both.

Read more »