3 High-Yield Dividend Stocks Paying Retirees at Least 5%

Looking for high-yield divided stocks paying retirees a steady income? Here are three options with lots to offer investors.

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Key Points

  • High-yield dividend stocks can deliver reliable income and potential long-term growth for retirees.
  • Telus, Enbridge, and Canadian Natural Resources offer defensive, cash-generating businesses with attractive yields (~7.8%, ~5.7%, ~5.6%).
  • With ongoing investment and long dividend growth track records (Enbridge ~30 years, CNQ 25 years), they suit income now or reinvestment for later.

Investing in high-yield dividend stocks can help boost your portfolio and generate reliable income. Some can provide long-term growth resulting in stellar stocks paying retirees a handsome income.

Fortunately, there’s no shortage of great stocks paying retirees handsome dividends. Here are three options for every portfolio to consider.

Option 1- Telus

The first of three stocks paying retirees juicy yields is Telus (TSX:T). Telus is one of Canada’s big telecoms, offering a bevy of subscriber-based services to customers across the country.

Those services include wireless, wireline, internet and TV services. The sheer necessity of some of those services makes Telus an incredibly defensive option for investors. The reliable revenue stream generated from those services allows Telus to invest in growth and pay out a handsome dividend.

That growth often involves reinvesting capital back into the massive infrastructure that comes with a nationwide network. In fact, Telus announced a whopping $70 billion capital investment over the next several years to fund improvements and expansion to its network.

Turning to dividends, it’s easy to see why Telus is one of the stocks paying retirees a solid yield. As of the time of writing, Telus offers an appetizing 7.8% yield.

For those not ready to draw on that income, this means that a mere $5,000 investment will be enough to generate more than a dozen new shares each year from reinvestments alone.

That fact alone makes this one of the stellar high-yield dividend stocks paying retirees.

Option 2 – Enbridge

Another superb example of stocks paying retirees a great dividend is Enbridge (TSX:ENB). Enbridge is one of the largest energy infrastructure companies on the continent. The company is well known for its pipeline business, and for good reason – it hauls massive amounts of crude and natural gas across that pipeline network.

The pipeline business generates toll-booth-like income, making it a highly defensive option for any portfolio. The revenue generated from the pipeline business represents only one segment of Enbridge.

The company also operates one of the largest natural gas utilities in North America, as well as a growing renewable energy operation with facilities in North America and Europe.

Both provide a reliable, recurring revenue stream that leaves room for growth investments as well as sustains a growing quarterly dividend.

That dividend currently boasts a juicy 5.7% yield. Adding to that appealing income potential is the fact that Enbridge has provided annual bumps to that dividend going back three decades without fail.

Option 3 – Canadian Natural Resources

Third on the list of stocks paying retirees is Canadian Natural Resources (TSX:CNQ). Canadian Natural Resources is one of the largest energy producers and among the most diversified in the country.

For those unfamiliar with the stock, the company engages in exploration and production of crude and natural gas liquids. Its operations are focused on Western Canada, but it also operates in the North Sea and offshore Africa.

One of the reasons why Canadian Natural Resources is one of the great stocks paying retirees a handsome yield stems back to its low-cost structure and diversified market base. This makes it a defensive option against volatile commodity prices.

The big reason why investors flock to the company is for its dividend. As of the time of writing, Canadian Natural Resources offers a quarterly dividend with a robust 5.6% yield.

Not only is that yield appetizing, but it’s also sustainable and growing. The company has amassed a streak of 25 consecutive years of increases, and offers a respectable 58% payout ratio that leaves room for growth and further increases.

Buy the dividend stocks paying retirees for decades

No stock is without some risk. Fortunately, this trio of stocks paying retirees handsomely offers both defensive appeal and growth prospects in addition to that handsome yield.

Whether drawing income now or reinvesting for later, stocks paying retirees such as the above trio are great options for any well-diversified portfolio.

Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Canadian Natural Resources, Enbridge, and TELUS. The Motley Fool has a disclosure policy.

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