Canadian retirees should consider investing in blue-chip TSX dividend stocks to create a steady stream of recurring income. Typically, fundamentally strong companies that are part of mature industries generate steady cash flows across market cycles, enabling them to maintain and even grow their dividends over time.
In this article, I have identified three top TSX stocks that can provide you with big income in retirement.
BNS stock
Bank of Nova Scotia (TSX:BNS) reported a solid fiscal second quarter (Q2) (ended in April) performance with adjusted earnings of $2.1 billion, or $1.52 per share, demonstrating the effectiveness of its strategic transformation. The bank achieved positive operating leverage for the fifth consecutive quarter while successfully executing its client primacy strategy, adding 392,000 new retail primary clients since launch.
Scotiabank’s disciplined capital allocation approach enabled it to increase its quarterly dividend to $1.10 per share in fiscal Q2, which translates to a yield of almost 6%. It expects to grow adjusted earnings by 6% (at the midpoint forecast) in fiscal 2025, driven by improved operational efficiency and client acquisition momentum.
Global Wealth Management delivered exceptional performance in Q2, with $405 million in earnings, up 17% year over year. Meanwhile, small business banking added 17,000 clients, contributing to a robust 5% net client acquisition rate that exceeds market averages. The bank improved its loan-to-deposit ratio to 104% for the 10th consecutive quarter.
Despite building $1.4 billion in credit loss provisions due to macroeconomic uncertainties, Scotiabank’s growing deposit base and strategic investments in artificial intelligence-driven productivity position it well for sustained growth while maintaining strong capital ratios and client relationships.
Manulife stock
Among the largest insurance companies globally, Manulife (TSX:MFC) has paid shareholders an annual dividend of $1.76 over the last 12 months, yielding over 4%.
Manulife Financial demonstrated robust momentum in Q1, highlighted by exceptional 50% growth in Asia Pacific sales driven by strong customer demand and operational execution across key markets, including Hong Kong, Japan, mainland China, and Singapore. Core earnings per share increased 3%, reflecting improved profitability and operational efficiency.
Manulife’s Global Wealth and Asset Management division reported positive net flows and core earnings growth, showcasing confidence in its investment capabilities. This diversified business model, operating across Asia, Canada, and the United States, provides resilience against market-specific risks while capitalizing on growth opportunities in multiple regions.
Manulife maintains a strong balance sheet with a Life Insurance Capital Adequacy Test ratio of 137% and a leverage ratio below 25%, positioning the company to navigate macroeconomic uncertainties while investing in expansion.
Its decade-long risk transformation through hedging, reinsurance transactions, and portfolio optimization has significantly reduced sensitivity to interest rate and equity market volatility, creating more stable earnings.
This counter-positioning strategy differentiates Manulife from higher-risk competitors while enabling sustainable growth through scale economies across its diversified platform.
Fortis stock
The final TSX dividend stock on the list is Fortis (TSX:FTS), a company that has increased its payouts for 51 consecutive years. Fortis delivered solid Q1 results while advancing its ambitious $26 billion five-year capital plan, investing $1.4 billion in utility infrastructure focused on transmission, Arizona’s resource transition, and system improvements. It expects this investment to grow its rate base by $14 billion to $53 billion by 2029, suggesting a 6.5% average annual rate-based growth.
Fortis benefits from regulatory moats through constructive outcomes, including multi-year rate frameworks and formula rate plans across jurisdictions. The company’s economies of scale across integrated utility systems create cost advantages, while large transmission investments deter smaller competitors.
With 51 consecutive years of dividend increases and a commitment to 4-6% annual dividend growth through 2029, Fortis offers investors reliable returns supported by essential infrastructure investments that facilitate the energy transition and grid modernization.
Over the last 12 months, Fortis has paid shareholders an annual dividend of $2.46, up from $0.57 in 2005.
