In retirement, there are a few things retirees want. Those would include things like stability, income, and passive methods of seeing gains come their way.
Today, we’re going to go over three stocks that fit the bill for retirees. Companies that provide stable outlooks with plenty more room to grow. So, without further ado, let’s get into them.
CIBC stock
Canadian Imperial Bank of Commerce (TSX:CM) has recently garnered positive attention from analysts and investors alike. CIBC operates a diversified range of financial services, including personal and business banking, commercial banking, wealth management, and capital markets. This diversity helps stabilize revenue streams and reduces the risk associated with dependence on a single business segment. For instance, the U.S. Commercial Banking and Wealth Management division reported a significant increase in net income due to lower provisions for credit losses and higher revenues.
CIBC reported robust financial results for the second quarter of 2024, with earnings per share (EPS) of $1.75, surpassing analysts’ consensus estimate of $1.66 by $0.09. The bank also recorded revenue of $6.16 billion, exceeding the expected $6.11 billion. This performance reflects CIBC’s strong operational efficiency and its ability to generate substantial profit even in challenging market conditions.
One of the most appealing aspects of CIBC for retirees and income-focused investors is its attractive dividend yield. The bank offers a quarterly dividend of $0.90 per share, which translates to an annual yield of around 5.28%. This makes CIBC an excellent choice for those looking to generate steady income from their investments.
TC Energy
Another top choice for investors is TC Energy (TSX:TRP), a significant player in the North American energy infrastructure sector. With its extensive pipeline network and power generation assets, the company has a solid foundation for delivering consistent returns to investors.
TC Energy has been actively managing its portfolio to enhance shareholder value. The company recently advanced its $3 billion asset divestiture program by agreeing to sell the Portland Natural Gas Transmission System for approximately $1.1 billion. Additionally, TC Energy announced the sale of the Prince Rupert Gas Transmission entities to Nisga’a Nation and Western LNG, further demonstrating its focus on strategic priorities and operational efficiency.
TC Energy’s robust capital spending program, focused on high-return projects, positions it well for future growth. The company’s capital expenditures are anticipated to be between $8.0 and $8.5 billion, with a commitment to limit annual net capital expenditures to $6 to $7 billion in the coming years. This disciplined approach to capital allocation is expected to drive long-term growth and profitability.
One of the standout features of TC Energy is its attractive dividend yield. The company declared a quarterly dividend of $0.96 per share for the second quarter of 2024, demonstrating its commitment to returning value to shareholders. With a dividend yield of approximately 7.17%, TRP offers a reliable income stream for investors seeking regular payouts.
Nutrien stock
Finally, Nutrien (TSX:NTR) offers both dividends and value for today’s retirees. It’s a leading provider of crop inputs and services, and there are several compelling reasons why investors might consider adding this stock to their portfolios.
Nutrien operates through multiple segments, including Retail, Potash, Nitrogen, and Phosphate. Its Retail segment, Nutrien Ag Solutions, is the largest in the world, distributing crop nutrients, crop protection products, seeds, and merchandise. The company’s strong market presence and diversified operations provide stability and reduce risks associated with dependency on a single revenue stream.
Despite a challenging market environment, Nutrien has managed to maintain strong performance. The company’s ability to offset lower net fertilizer selling prices with higher sales volumes and lower costs highlights its operational efficiency and resilience. This adaptability positions Nutrien well to navigate market fluctuations and capitalize on future opportunities.
Nutrien’s first-quarter 2024 financial results showcased its robust performance. The company reported net earnings of $165 million, with adjusted earnings per share of $0.46, beating analysts’ expectations of $0.37. So, now, with a dividend yield of 4.33%, it looks like a stellar buy.
