Finding that perfect mix of stocks to line your portfolio can make a huge difference in whether you retire comfortably or need to work a few extra years. Fortunately, the market gives us plenty of options to steer us towards a wealthy retirement.
Here are two options that should be core to every single long-term portfolio.
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Play defensive and get a juicy income!
Utilities are some of the most defensive options on the market. While there are many reasons for this view, investors looking to build a portfolio for a wealthy retirement should consider buying Fortis (TSX:FTS).
Fortis is one of the largest utilities in North America. The $68 billion behemoth boasts 10 operating regions with 3.5 million utility customers across Canada, the U.S., and the Caribbean.
One of the main reasons investors flock to Fortis is its dependable business model and juicy dividend. In short, Fortis generates a recurring revenue stream backed by long-term, regulated contracts.
That reliable revenue stream (which often spans decades) allows Fortis to invest in growth and pay out a tasty quarterly dividend. As of the time of writing, that dividend works out to an appetizing 4.45% yield.
And that is not even the best part.
Fortis has provided investors with annual bumps to that dividend for 50 consecutive years without fail. This makes Fortis one of only two Dividend Kings on the market today and a must-have for any investor seeking a wealthy retirement.
Buy it, hold it, and enjoy that juicy growing income.
Invest here for a comfortable retirement
It would be impossible to compile a list of stocks for a wealthy retirement without mentioning at least one of Canada’s big bank stocks. The big banks boast juicy yields, robust growth prospects and a reliable domestic market.
Those factors make the big banks some of the best long-term options on the market. That being said, Bank of Montreal (TSX:BMO) is the one big bank that investors seeking a wealthy retirement should look at right now.
BMO is the oldest of Canada’s big banks. Thanks to a massive acquisition last year, it’s also the one big bank with massive long-term growth potential. That acquisition was for California-based Bank of the West.
The deal expanded BMO’s presence in the U.S. market to a whopping 32 states. It also added millions of customers and billions in deposits. That fact makes BMO a great growth option for prospective investors looking for a wealthy retirement in the future.
Turning to income, BMO continues to impress. Few investors may realize this, but BMO is the oldest of the big banks and, as a result, has been paying out dividends for nearly two centuries without fail.
That is an incredible amount of time. More importantly, it includes both booms and pullback periods alike, which adds to the overall defensive appeal of the stock. As of the time of writing, the yield on BMO’s quarterly dividend works out to an impressive 5.38%.
This means that investors who can drop $40,000 into the bank stock will earn an income of just over $2,140. Even better, like Fortis, BMO has an established history of providing juicy annual bumps to that dividend.
This means that investors who are not yet ready to draw on that income can choose to reinvest it and let that eventual income grow further towards a wealthy retirement.
Build your wealthy retirement portfolio today!
No investment is without some risk, and building out any well-diversified portfolio takes time.
In my opinion, both BMO and Fortis are excellent options for long-term investors who are looking to build portfolios for a wealthy retirement.
Buy them, hold them, and watch them (and your future income) grow.
