Who doesn’t want to retire early and enjoy the fruits of their labour? If you are planning to quit your job soon, you may want to invest in some dividend-paying stocks that could provide you with a steady income stream after you stop working.
Many large, well-established companies in Canada reward their investors with regular dividends, sometimes increasing them year after year. These companies have strong competitive advantages, stable cash flows, and loyal customer bases that allow them to generate consistent profits and share them with shareholders, which makes them even more attractive to retiree investors.
Here are two such TSX dividend stocks that you may want to consider for your retirement portfolio.
Telus stock
The first stock in this list is Telus (TSX:T), which is a telecommunications company offering internet, voice, entertainment, and digital health services, with a strong focus on innovation and customer service. It currently has a market cap of $32.1 billion as its stock trades at $21.62 per share with 8.3% year-to-date losses.
Telus has a long history of paying dividends and increasing them over time. The company has raised its dividend per share by around 113% in the last 10 years between 2013 and 2023. It currently pays a quarterly dividend of $0.3891 per share, which translates to an annualized yield of 7.2% at the current price.
In the first quarter of this year, Telus saw significant milestones in customer additions, recording 45,000 net mobile phone additions and an impressive 101,000 connected device additions. Also, the company’s fixed customer net additions reached 63,000, including 30,000 new internet customers, due mainly to its robust PureFibre network and extensive bundled service offerings. Despite a challenging global macroeconomic environment, its subsidiary Telus International reported strong profitability and cash flows.
In addition to the company’s ongoing efficiency initiatives, Telus’s growing focus on maintaining a customer-centric approach and investments in cutting-edge technologies make it a solid dividend stock to buy and hold in your retirement portfolio.
Enbridge stock
Enbridge (TSX:ENB), which is arguably one of the most reliable Canadian Dividend Aristocrats, is the second stock to consider for your retirement portfolio. This Calgary-headquartered energy infrastructure giant manages a vast network of pipelines in North America that transport oil and natural gas. ENB stock currently has a market cap of $109.7 billion as its stock trades at $50.25 per share with 5.3% year-to-date gains.
The energy firm has been rewarding its investors with attractive dividends for nearly seven decades and has consistently raised dividends for 29 years in a row. In the 10 years between 2013 and 2023, Enbridge’s dividend per share has jumped by a solid 182%. It currently pays a quarterly dividend of $0.9150 per share, translating into an impressive 7.3% annualized dividend yield.
Besides its well-established traditional energy infrastructure business, Enbridge’s gradually increasing footprint in crude oil export and renewable energy segments further strengthens its long-term financial growth outlook. Given that, this top TSX dividend stock could be worth adding to your retirement portfolio.
