How I’d Build a $20,000 Retirement Portfolio With These 3 TSX Dividend All-Stars

If you’re worried about returns and want to focus on dividends, these dividend stocks are the first to consider.

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 April 25, 2025 9:30 pm EDT

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Building a nest egg for retirement can feel like a big task, especially if you’re starting with a specific amount like $20,000. But it’s totally doable by picking some dividend-paying stocks. The trick is to look for companies that are financially healthy, consistently pay out dividends, and have the potential to grow over time. This way, your investments can give you both regular income and the chance to grow in value. Let’s look at three dividend stocks listed on the TSX that fit this description – namely, Loblaw Companies (TSX: L), AGF Management (TSX: AGF.B), and TELUS (TSX: T).

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Loblaw

First up is Loblaw Companies. You probably know the dividend stock as it’s the biggest grocery and pharmacy retailer in Canada, with over 2,500 stores across the country. It holds a solid track record when it comes to finances. For the full year of 2024, revenue reached $61 billion, and adjusted earnings were over $2.6 billion.

Looking at just the last three months of 2024, Loblaw reported that adjusted diluted net earnings per share (EPS) went up by a healthy 10% to $2.20. It’s also planning to invest $2.2 billion in 2025, which includes opening 80 new stores and 100 pharmacy clinics. This shows it’s still growing and investing in the future. Loblaw’s current dividend yield is around 0.95%.

AGF

Next, we have AGF Management. It’s an independent dividend stock that manages investments for people all over the world. In the first three months of 2025, AGF reported revenue of $149.1 million, which is a nice 9.1% increase from the same period in 2024. The net income rose to $31 million, a small increase of 1.3% year-over-year.

The profit margin was a solid 21%. AGF recently increased their quarterly dividend to $0.125 per share, resulting in a current dividend yield of about 5.5%. This shows it’s sharing more of its profits with investors.

TELUS

Finally, there’s TELUS Corporation. This is a major telecommunications company in Canada, providing services like wireless, internet, and TV. In the last three months of 2024, TELUS reported total operating revenues and other income of $5.4 billion, a 3.5% increase compared to the same time in 2023.

Its TTech segment, which includes the core telecom services, saw operating revenue grow by 4.1% and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grow by 7%. TELUS has a forward annual dividend yield of around 7.7%, showing a strong commitment to returning value to shareholders.

Investing wisely

To build a balanced retirement portfolio with your $20,000, you could consider splitting your investment equally among these three dividend stocks. This way, you’d have roughly $6,666 in each, giving you diversification across different sectors. They include retail with Loblaw, asset management with AGF, and telecommunications with TELUS. This helps to reduce your overall risk. Plus, each of these companies pays a regular dividend, which can provide a steady stream of income for your retirement savings.

By investing in these three, you can benefit from their individual strengths. Loblaw’s large network of stores and expansion plans suggest continued growth. AGF’s global investment business gives you exposure to international markets. Furthermore, TELUS’s strong position in the telecom industry provides a reliable source of revenue.

What’s also a good idea is to consider reinvesting the dividends you receive from these dividend stocks. This can help your returns grow even more over time thanks to the power of compounding. Of course, it’s always important to keep an eye on how each company is doing and make adjustments to your holdings if needed to make sure your portfolio still lines up with your long-term financial goals.

Bottom line

So, building a retirement portfolio with $20,000 is definitely achievable by choosing well-established, dividend stocks like Loblaw, AGF, and TELUS. The solid financial performance, consistent dividends, and potential for growth make each good choices for investing for the long haul. Just remember to do your own thorough research or chat with a financial advisor to make sure your investment strategy fits your specific retirement goals.