We’re pretty lucky here in Canada, especially when it comes to investing. Canadians are given so many opportunities, including the Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plans (RRSP). These are tax shelters that allow you to not just store cash but grow it.
What’s more, we also have access to the Canada Pension Plan (CPP) and Old Age Security (OAS). The latter can be a great way to increase income, certainly. However, it’s not going to exactly pay every single bill, especially with a max of $8,600 per year.
So, how can we increase this further? Let’s look at some options on how to invest to potentially double your OAS payments.
Digging in
First, let’s look at what it would take to double those payments. Right now, investors maxing out would create about $718 per month in OAS payments. To create that income, this would mean you would need to find a dividend stock.
Why dividend stock? These are companies that won’t just see growth, but also provide income for investors. This can be a saviour in times of trouble, and allow you to double those payments from dividend income alone, even while shares aren’t doing so hot.
Then, hold that cash in your TFSA. That means there’s no risk of OAS clawbacks, and you can lock up every dollar of dividend income to keep it in your pocket. To build that portfolio, you’ll therefore need a safe and reliable dividend stock with a strong history of growth. And I have the perfect one.
Consider CIBC
If you’re looking to double your OAS payment, then consider dividend stock Canadian Imperial Bank of Commerce (TSX:CM). This bank is a strong company that provides a blend of income, growth, and strategic strength.
Let’s look at its earnings to see this. The dividend stock recently reported a stellar third quarter in 2025, with adjusted net income rising to $2.1 billion, helped by an 87% surge in capital markets. Furthermore, its provisions for credit losses remained lower than expected, showing that the company is managing risk while being able to produce growth.
And, of course, there’s the dividend yield. As of writing, the dividend stock boasts a 3.9% dividend yield. Meanwhile, the payout ratio is at 46%, showing it has room to grow, never mind keep the cash flowing in. And with a solid track record of increasing dividends, this is certainly a strong way to create that OAS cash.
Now, let’s look at how to create that income. First, let’s say you want to create that $8,600 per year in dividends alone. That would mean buying 2,216 shares in CIBC stock at writing. This would cost about $242,000. It’s not cheap, but you could thereby double your income immediately!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CM | $109.16 | 2,216 | $3.88 | $8,600 | Quarterly | $241,904 |
Bottom line
If you’re looking for a strong way to create long-term income from OAS payments, CIBC stock should be on your radar. This bank stock offers a compelling combination of income, value, and strategy that could provide any retiree with a solid outlook. So, consider adding this top dividend stock to your watchlist today.
