Dividend Fortunes: 2 Canadian Stocks Leading the Way to Retirement Wealth

Here are two of the best Canadian dividend stocks you can add to your portfolio right now to build retirement wealth in the long run.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Building wealth for retirement is one of the most important goals for many investors, especially those who are planning to retire in the near future or have already retired. One of the best ways to achieve this goal is to invest in top Canadian dividend stocks that could offer consistent and growing income as well as capital appreciation in the long term. Besides these benefits, many strong dividend stocks on the Toronto Stock Exchange could also help investors reduce the volatility and risk of their portfolios, as they tend to be less affected by short-term market fluctuations and economic downturns.

In this article, I’ll talk about two such Canadian dividend stocks that have a solid track record of providing robust dividend income and are ideal for creating a reliable income stream for retirement. Let’s quickly take a look at the details of these two dividend giants and why they are great choices for your retirement portfolio.

Great-West Lifeco stock

Great-West Lifeco (TSX:GWO) is the first Canadian stock to consider adding to your retirement portfolio. As one of the top international financial services firms with operations in life insurance, health insurance, asset management, and reinsurance, it stands out for its diversified business model and strong presence in major markets like Canada and Europe.

Created with Highcharts 11.4.3Great-West Lifeco PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

GWO stock currently has a market cap of around $3.5 billion as it trades at $41.25 per share after witnessing about 6% decline so far in 2024. At this market price, the stock offers a 5.4% annualized dividend yield and distributes these dividend payouts every quarter. Interestingly, the company raised its dividends by around 72% over the 10 years between 2013 and 2023.

Despite the ongoing global macroeconomic challenges, Great-West’s earnings soared by 19.8% YoY (year over year) in the last four quarters combined to $4.14 per share, reflecting its ability to achieve operational efficiency and generate stable cash flows irrespective of economic conditions. Moreover, its financial stability, combined with strategic acquisitions and a focus on high-margin businesses, make it a perfect fit for investors seeking to build retirement wealth through steady dividend income.

Pembina Pipeline stock

Pembina Pipeline (TSX:PPL) could be another great option for your retirement portfolio. This Calgary-based energy transportation and midstream service provider has a strong history of rewarding investors with consistent and growing dividends, which are backed by its diversified portfolio of energy infrastructure assets.

This energy sector-focused firm currently has a market cap of $30.7 billion as its stock trades at $52.86 per share with around 16% year-to-date gains. PPL stock has a decent 5.2% annualized dividend yield at the current market price. Just like Great-West Lifeco, Pembina also increased its dividend per share by nearly 61% in the last 10 years.

In the first quarter of 2024, higher revenues and volumes on the Peace Pipeline system, the reactivation of the Nipisi Pipeline, and increased contributions from the Alliance Pipeline helped Pembina post strong double-digit YoY growth in its adjusted earnings. As it continues to focus on more strategic acquisitions and project developments, I expect the company’s financial growth trends to improve in the years to come, making it an ideal stock for retirement portfolios.

Should you invest $1,000 in Manulife right now?

Before you buy stock in Manulife, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Manulife wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Retirement

RRSP Canadian Registered Retirement Savings Plan concept
Retirement

Here’s the Average Canadian TFSA and RRSP at Age 60

Many Canadian retirees have tens of thousands invested in ETFs like the iShares S&P/TSX 60 Index Fund (TSX:XIU).

Read more »

Redwood trees stretch up to the sunlight.
Retirement

3 Canadian Growth Stocks I’d Buy and Hold in a TFSA Forever

These stocks have the potential to outperform the broader market with their returns. Using the TFSA can further amplify your…

Read more »

woman retiree on computer
Retirement

Want to Retire Early? These 2 TSX Stocks Could Make it Happen

These safe, large-cap dividend stocks could help fast-track your path to retirement.

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Retirement

How to Protect Your Retirement Savings From the CRA

Building a sizeable retirement pool is important, but it is equally important to protect it from the CRA’s tax claws.

Read more »

grow money, wealth build
Retirement

Maximizing TFSA Growth: Top Investment Choices for 2025

Two resource companies are the top investment choices for 2025 to maximize TFSA growth.

Read more »

cloud computing
Retirement

The Absolute Best Canadian Stocks to Buy and Hold Forever in a TFSA

The TFSA is the perfect place to hold Canadian stocks that will compound and multiply over decades. These stocks are…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Stocks for Beginners

The Best Canadian Stocks to Invest $7,000 in This Month

Wondering how to deploy your $7,000 TFSA contribution in 2025? Here are four quality Canadian stocks to add if the…

Read more »

Two seniors float in a pool.
Retirement

3 TSX Stocks That Can Turn Retirement Dreams Into Reality

Find out how to make your retirement dreams a reality by focusing on long-term investments and preparing for unforeseen circumstances.

Read more »