Retirees are typically risk-averse investors and should consider investing in companies with solid fundamentals that have consistently paid and raised their dividends. The dividend increases should help in offsetting inflation. Against this backdrop, let’s look at three reliable dividend stocks that look ideal for retirees.
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Fortis
Fortis (TSX: FTS) is a utility company that meets the electric and natural gas needs of 3.5 million customers across the United States, Canada, and the Caribbean. Along with a low-risk transmission and distribution business, its regulated asset base shields its financials from economic cycles and market volatility, delivering stable and reliable cash flows. Supported by these healthy cash flows, the company has raised its dividend consistently for 51 years and currently offers a healthy forward dividend yield of 3.6%.
Moreover, Fortis’s future dividend payouts look safer, given its expanding asset base. After making capital investments of $2.9 billion in the first two quarters, the company is on track to invest $5.2 billion this year. Additionally, the company plans to invest approximately $20.8 billion from 2026 to 2029, thereby increasing its rate base at a 6.5% CAGR (compound annual growth rate) to $53 billion. These expansions could strengthen its financial growth, aligning with management’s projection of annual dividend increases of 4–6% through 2029.
Enbridge
Enbridge (TSX: ENB) is my second pick. The diversified energy company operates a pipeline network that transports oil and natural gas across North America through a tolling framework and long-term contracts. Additionally, its power-purchase agreement-backed renewable energy facilities and low-risk natural gas utility assets deliver reliable financial performance irrespective of the broader market conditions. Supported by these reliable financials, the company has paid dividends for 70 previous years and has also raised its dividend at a 9% CAGR since 1995. Meanwhile, its forward dividend yield currently stands at 5.4%.
Additionally, Enbridge is investing $9–$10 billion annually to expand its oil and natural gas transmission and distribution, utility, and renewable energy assets. These expansions could support its financial growth, with the management predicting that its EBITDA (earnings before interest, taxes, depreciation, and amortization), EPS (earnings per share), and DCF (discounted cash flows)/share will grow around 5% annually in the medium term. Amid these growth prospects, I anticipate Enbridge will continue to maintain its dividend growth in the coming years.
Bank of Nova Scotia
My final pick would be the Bank of Nova Scotia (TSX: BNS), which has been paying dividends since 1833. It operates in over 55 countries across North America, Latin America, and Asia, offering a range of financial services. Its diversified revenue sources generate stable and reliable cash flows, enabling it to pay dividends consistently. Additionally, the Toronto-based bank has raised its dividend at an annualized rate of 4.93% for the last 10 years and currently offers a healthy forward dividend yield of 4.94%.
Moreover, the company had reported a healthy third-quarter performance in fiscal 2025 last month, with its adjusted EPS growing by 15.3%. Additionally, its CET1 (Common Equity Tier 1) capital ratio, which measures the company’s financial strength, rose 10 basis points to 13.3% amid healthy internal capital generation. Meanwhile, BNS is working on expanding its business across the low-risk North American market, while scaling back its Latin American operations. This strategy could streamline its operations, focusing resources on higher-return opportunities, thereby enhancing profitability. Therefore, I believe BNS is well-equipped to continue rewarding its shareholders with healthy dividends.
