The top Canadian Dividend stocks with sustainable yields and companies with defensive business models are top retiree-friendly stocks. These companies offer retirees the opportunity to earn worry-free passive income and generate steady capital gains over time.
However, as stocks are risky investments, retirees seeking stability and income should focus on companies with solid fundamentals, a growing earnings base, and a track record of consistent dividend payments. Such investments can provide reliable income and stabilize and diversify your portfolio.
With this background, here are the top Canadian stocks retirees could own in 2025.
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Retiree-friendly stock #1
Fortis (TSX: FTS) is a top retiree-friendly stock to own in 2025. This North American utility giant is renowned for offering worry-free dividends, driven by its regulated business model that generates steady earnings in all market conditions.
Notably, 99% of its assets fall under regulated utilities, providing a foundation of predictable and growing earnings and cash flows. This allows the company to sustain and grow its payouts regardless of market conditions. Moreover, 93% of Fortis’s operations focus on energy transmission and distribution, a segment known for its low-risk, stable returns.
The company has raised its dividend every year for 51 consecutive years—a streak it plans to maintain. Fortis’s commitment to investing in its regulated asset base is key to its payout, fueling future earnings growth and dividend increases.
Fortis projects a compound annual growth rate of 6.5% in its rate base through 2029. This growth will boost dividends by 4-6% annually, offering retirees clear visibility on future income. Overall, with its resilient business model, growing asset base, and well-protected dividend yield of 3.9%, Fortis is an ideal stock for retirees seeking dependable income.
Retiree-friendly stock #2
Loblaw (TSX: L) is another top retiree-friendly stock for stability, growth, and income. This Canadian blue-chip stock is known for its defensive business model, ability to deliver above-average returns, and regular dividend payments.
Loblaw is Canada’s largest food and pharmacy retailer, operating a business that thrives even during economic turbulence. Its low-risk model has been a key driver of steady revenue and earnings growth. This supports the company’s share price and enables it to pay dividends and execute stock buybacks, rewarding its shareholders.
Over the past year, Loblaw’s stock has surged by approximately 64%, and its five-year performance is even more impressive, with about a 191% gain. These robust returns reflect the company’s ability to generate value for shareholders, driven by its focus on essential retail services.
Key to Loblaw’s growth is its strategic approach to customer retention. Its discount stores, diverse product range, and value-oriented pricing resonate with consumers across various economic conditions. This strategy ensures steady sales and earnings growth, regardless of market cycles.
Looking ahead, Loblaw continues to innovate by expanding its omnichannel offerings and increasing its private-label brand presence. These initiatives will likely enhance the shopping experience, drive same-store sales growth, and bolster profitability. The company is also focused on optimizing its retail network and broadening its discount store footprint, positioning itself for sustainable growth in the years to come. Moreover, Loblaw offers a well-protected dividend yield of over 1%.
