Retirement is many things to many people. But increasingly, it has become a point of stress, practically as soon as you graduate from university. Investing in your retirement a little at a time is great, but emergencies happen. Emergencies that can send you right back to square one. And with rising costs and interest rates, it isn’t getting any easier.
So that’s why investing in dividend stocks can be a great way to increase your retirement savings, while still maintaining your lifestyle and saving for those emergencies. When you can’t invest on a regular basis, your dividend income can keep you going. So that’s why today we’re going to look at three dividend stocks that fit the bill.
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SLF
Sun Life Financial (TSX: SLF) is a dividend powerhouse in the insurance industry. The dividend stock demonstrated this recently when reporting its most recent earnings. The quarter saw a 2% increase in underlying net income, hitting $1 billion. Furthermore, there was a 15% increase in bancassurance sales in Asian markets, with a 5% rise in assets under management. The latter reached an amazing $1.5 billion.
The dividend stock saw solid performance in Asia, with regional and segment diversification continuing to grow. What’s more, Sun Life is now focused on using artificial intelligence (AI) and digital initiatives to enhance its efficiency and customer engagement. Looking forward, investors get all this, plus a strong dividend currently yielding 4.4%.
POW
Power Corporation of Canada (TSX: POW) is another insurance provider offering up major income for investors. And again, this was demonstrated in second quarter earnings. The dividend stock saw net earnings rise to $772 million, with major contributions from Lifeco and IGM Financial. Plus, its Wealthsimple investment saw a 21% increase in valuation!
Looking ahead, the dividend stock’s diversification is a major bonus. Ongoing strategic acquisitions and buybacks, as well as further investments like Wealthsimple, will continue to pump up value. And with strong dividends and continuous investments, there’s likely more to come from this 4.2% dividend stock.
EIF
Exchange Income Corporation (TSX: EIF) is the last on this list, but it offers something a bit different. The diversified, acquisition-oriented company focuses on aerospace and aviation, as well as manufacturing. And clearly, business is booming. The dividend stock recently achieved record revenue of $720 million with strong growth in earnings before interest, taxes, depreciation and amortization (EBITDA). It also acquired Canadian North, for even more strategic positions in Northern Canada.
But what investors love about this stock is the dividend. The company reports consistent earnings, and now the Canadian North acquisition provides even more long-term growth. With guidance hitting between $725 to $765 million for the year, future performance looks all but guaranteed. And with a solid dividend at 3.7%, investors really can have it all.
Bottom line
For investors seeking income in retirement, these three dividend stocks have it all. Sun Life offers stable income and growth, with more regional and digital opportunities. Power holds a diverse set of asset management and life insurance firms for long-term growth. Finally, Exchange Income is perfect for growth-oriented investors wanting dividends while they wait. So if you’re fearful about retirement, sleep better at night with these three on deck.
