Retirement comes with a major shift in investment priorities. Gone are the days of chasing risky growth stocks or hyper-volatile crypto trades. Most retirees want reliability, income, and a chance to sleep at night without fretting about the next market crash. That’s where solid dividend payers shine, and a few stand out for a unique mix of stability, income, and growth potential. Today, let’s look at three names that are almost tailor-made for Canadian retirees: Fairfax Financial Holdings (TSX:FFH), Granite REIT (TSX:GRT.UN), and iShares S&P/TSX 60 Index ETF (TSX:XIU).
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Fairfax
Let’s start with the heavy hitter. Fairfax Financial has long been considered Canada’s version of Berkshire Hathaway, and recent earnings suggest that comparison still holds. For the second quarter of 2025, Fairfax reported net earnings of US$1.44 billion, or $61.61 per diluted share. That’s up significantly from the $915 million reported a year earlier. The surge came from huge gains on equity investments, including $800 million in net gains on common stocks, plus another $126 million in operating income from its non-insurance businesses.
But it’s not just about stock gains. Fairfax’s property and casualty operations delivered an underwriting profit of $426.9 million, and its book value per share climbed 10.8% since year-end, now sitting at a whopping $1,158.47. For retirees, the appeal here lies in more than just the underlying business strength. Fairfax pays a healthy dividend of $15 per share at writing, and its low payout ratio of 7.6% leaves room for future hikes. If you’re looking for a blue-chip holding that’s diversified across insurance, investments, and global markets, Fairfax fits the bill.
Granite
Switching gears, Granite real estate investment trust (REIT) offers a very different type of retirement-friendly asset: reliable monthly income backed by industrial real estate. Granite’s portfolio includes logistics, warehousing, and light industrial properties in Canada, the U.S., and Europe. Despite the challenges faced by REITs in a higher-rate environment, Granite continues to show strength.
In the first quarter of 2025, Granite’s net operating income rose 9.8% year over year to $125.7 million, with a same-property NOI increase of 4.7%. Funds from operations came in at $91 million, or $1.46 per unit, up from $1.30 the year before. Even more compelling, the adjusted funds from operations (AFFO) payout ratio fell to just 60%, giving Granite a comfortable buffer to maintain its monthly distribution of $0.2833 per unit, or about $3.40 annually. That works out to a yield of roughly 4.6% at today’s price near $74.75.
XIU
Finally, let’s talk about XIU, the iShares S&P/TSX 60 Index exchange-traded fund (ETF). While not a single company, it’s a top-tier pick for retirees who want broad exposure without the headache of managing individual stocks. XIU tracks 60 of Canada’s largest companies, and it does so with a rock-bottom management fee of just 0.18%.
Year to date, the ETF has posted a 10.14% return, and over the past year, it’s returned more than 24%. That’s impressive for an index fund. XIU currently yields about 2.8%, with distributions paid quarterly. The key benefit for retirees is the simplicity. You get diversification across sectors, steady income, and growth potential, all wrapped into one ETF.
It’s not going to double overnight, and that’s kind of the point. XIU lets you participate in the Canadian economy’s biggest names without worrying about quarterly earnings calls or surprise dividend cuts. And with over $16.8 billion in net assets, it’s one of the most liquid and trusted ETFs on the TSX.
Bottom line
Put all three of these together, and you’ve got a rock-solid income strategy. Fairfax gives you growth with a rising dividend, Granite offers consistent monthly income from real estate, and XIU provides low-cost diversification and market exposure. It’s a trio that balances each other well, and helps retirees sleep easily knowing their money is working for them.
