Want Passive Income in Retirement? These 3 Safe Stocks Deliver

These three Canadian dividend stocks can help turn your retirement portfolio into a reliable stream of income for years to come.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published June 20, 2025 3:45 pm EDT

Retirement should be about freedom, not financial stress. And one of the easiest ways to achieve that freedom is by creating a reliable source of passive income you can count on. With some fundamentally strong dividend stocks in your retirement portfolio, you can create a stream of income that continues to flow for decades – no matter what the markets are doing in the short term.

Here are three safe Canadian stocks that could help you generate passive income during retirement without taking unnecessary risks.

A glass jar resting on its side with Canadian banknotes and change inside. — Source: Getty Images

Atco stock

A safe stock you can buy to generate passive income for years is Atco (TSX: ACO.X), a business that could bring some peace of mind to long-term income investors. Based in Calgary, it operates across the energy, housing, logistics, and infrastructure sectors. Its well-diversified business model helps it easily weather economic ups and downs.

Atco stock has gained over 31% in the last year to currently trade at $51.70 per share, giving it a market cap of $5.8 billion. It offers an annualized dividend yield of 3.9%, paid quarterly.

Atco posted first-quarter adjusted earnings of $160 million, up 8% YoY (year-over-year). That growth came alongside strong activity across its business units. Its energy segment continued advancing large infrastructure projects while its subsidiary ATCO Structures secured new contracts across Canada, the U.S., and Australia. If you’re looking for a dependable stock with a focus on long-term growth, Atco could be a solid addition to your retirement portfolio.

Brookfield Renewable stock

Next up is Brookfield Renewable Partners (TSX: BEP.UN), a stock that can add some powerful consistency to your passive income portfolio. The company runs one of the largest publicly traded renewable power platforms globally, with operations spanning hydroelectric, wind, solar, and energy storage.

Its stock has climbed over 10% over the last month to currently trade at $35.88 per share with a market cap of $10.2 billion. At this price, it offers a solid annualized dividend yield of 5.7%.

In the first quarter, Brookfield Renewable reported record funds from operations (FFO) of US$315 million with a 7% YoY rise. Even with a net loss of US$197 million, the company’s strong FFO reflected the steady cash flow from its highly contracted global fleet.

Meanwhile, Brookfield Renewable continues to invest in growth, bringing new capacity online and completing key acquisitions. For long-term investors, it offers a great mix of stable income and exposure to the expanding clean energy sector.

Premium Brands stock

Finishing the list is Premium Brands Holdings (TSX: PBH), a top dividend-paying stock that could yield passive income for years. The company mainly produces and distributes specialty food products across Canada and the U.S.

In the March quarter, Premium Brands posted a 15% YoY jump in its revenue to a record $1.7 billion. Similarly, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 12.8% YoY with the help of strong operational progress despite higher raw material costs.

PBH stock currently trades at $79.43 per share with a market cap of $3.6 billion and offers a healthy annualized dividend yield of 4.3%. While the stock hasn’t seen any notable change so far this year, its steady cash flow and growing U.S. presence make it one to hold for the long term.