3 Top Canadian Stocks to Safeguard Your Retirement

If you’re looking for long-terms gains while remaining secure and safe, then you’ll want these stocks to keep your retirement steady.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published September 23, 2024 11:45 am EDT

For Canadians looking to protect their retirement money, dividend-paying stocks from sectors like utilities, financials, and real estate are top choices. Companies like Fortis (TSX: FTS), with a solid dividend, or Royal Bank of Canada (TSX: RY), which boasts a long history of increasing payouts, offer both stability and income. Plus, real estate giants like Granite REIT (TSX: GRT.UN) provide consistent returns and yields. These stocks are known for being less volatile and can act as a cushion during market dips, which is exactly why we’ll get into them today.

edit Safe pig, protect money — Image source: Getty Images

Fortis

Fortis is a stellar pick for long-term passive income, especially for Canadian investors eyeing stability. Known for its rock-solid dividend, currently yielding 3.82% at writing, Fortis has been a consistent performer in the utility sector. What’s particularly exciting is the company’s 12.2% year-over-year earnings growth in the second quarter (Q2) of 2024, thus showing it’s not just a safe play but one with momentum. Plus, Fortis boasts an impressive 50-year streak of increasing dividends, making it a reliable partner for those looking to pad their retirement portfolios. As they say, “Slow and steady wins the race,” and Fortis certainly lives up to that motto!

In terms of recent performance, Fortis’s share price is hovering around $62 as of writing, and its recent quarterly revenue growth of 2.9% demonstrates steady progress. With a market cap of $30.62 billion, Fortis offers stability through its diversified utility operations across Canada, the U.S., and the Caribbean. The company’s forward price-to-earnings (P/E) ratio of 18.52 also signals good value for long-term investors. Whether you’re planning for retirement or seeking steady, hands-off income, Fortis has you covered!

RBC

RBC is a top contender for long-term passive income, and it’s easy to see why. With a forward dividend yield of 3.38% at writing and a payout ratio of just under 49%, RY provides a steady stream of income without overextending itself. Its earnings momentum is impressive, too, with a 16.2% year-over-year earnings growth in Q3 2024. The bank has a strong track record of dividend increases, thus making it a reliable choice for those building a retirement portfolio. As the largest bank in Canada, RY offers both stability and growth. Therefore, you can sleep soundly at night, knowing your investment is safe.

As of today, RY is trading at $168 at writing, just shy of its 52-week high of $169.04, reflecting solid investor confidence. With a quarterly revenue growth of 13%, it’s clear the bank is in good financial health. The stock’s beta of 0.84 also shows it’s less volatile than the broader market, thus making it a dependable choice for risk-averse investors. As one financial analyst put it, “RY is a Dividend King that doesn’t just offer income—it offers peace of mind.”

Granite

Granite REIT is another fantastic choice for long-term passive-income seekers, thanks to its steady 4.10% forward dividend yield and solid performance in the industrial real estate sector. With a quarterly earnings growth of 21.9% in Q2 2024, Granite has shown excellent momentum. Therefore, this reflects its ability to generate strong income for investors. The REIT focuses on high-quality industrial and logistics properties. These are essential in the modern economy and offer resilience during economic downturns. As a bonus, Granite has consistently paid out dividends with a five-year average yield of nearly 4%, making it a dependable source of passive income.

Currently trading at $80.43, GRT.UN is close to its 52-week high, reflecting strong investor confidence in its growth potential. The company’s quarterly revenue growth of 7.6% highlights its steady expansion. Meanwhile, its payout ratio of 89.68% suggests that Granite is committed to returning value to shareholders. As one industry expert put it, “Granite is a cornerstone in any dividend investor’s portfolio, offering a stable and growing income stream.” Whether you’re looking for long-term income or a stable asset in uncertain markets, GRT.UN checks all the boxes.