Retirement can be scary, as you don’t know how long you will live and whether your savings will outlive you. What if a surprise expense comes in and wipes out half of your retirement pool? While you may still have some active income coming in from a part-time gig or the garage you have rented out, a question always haunts you: Will this be enough?
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How to stretch your money through retirement
There is a way to stretch your money through retirement, without worrying about running out of cash. The stock market has high-yield dividend stocks you can buy in bulk and live off the dividend income. The invested amount will remain stable, and the stock will provide you with a fixed monthly or quarterly return. Investing in these high-yielding stocks through your Tax-Free Savings Account (TFSA) contribution room is suggested, as it will make your passive income tax-free.
Two dividend stocks with a yield of around 7%
SmartCentres REIT (TSX: SRU.UN) gives you exposure to retail store rental income. Imagine being a tenant of Walmart. This is what gives assurance that SmartCentres REIT will give a monthly payout in every economic situation. It is among the few Canadian REITs that never slashed dividends even in crises such as the 2008 Global Financial Crisis and the 2020 pandemic. The REIT offers a 6.9% dividend yield and is diversifying into residential, warehouse, and commercial space to enhance the value of its stores.
While SmartCentres REIT doesn’t grow its dividend regularly, you can be assured of receiving a fixed monthly payout. An annual dividend yield of 6.9% is above the interest that bank deposits give.
Telus Corporation (TSX: T) goes a step further. It grows dividends every six months by 3.5%. This growth rate may slow to 1.5%–4% in the 2026–28 period. The company is among the big three telcos dominating the Canadian telecom market. Moreover, it ensures the dividend payout is within its target range of 60–75% of free cash flow, which helps it grow dividends every year. The telecom company is monetizing the 5G opportunity, which can help it continue growing its cash flow for the next decade.
How to earn $3,700 annually from the above two stocks
A $25,000 investment in each of the above two stocks can earn you $3,705 in annual income. SmartCentres can provide $144 every month, and Telus $495 every quarter, for a one-time investment of $50,000.
| Stock | Stock Price | Number of shares | Dividend Per Share | Total Dividend amount | Dividend Yield |
| Telus | $21.10 | 1185 | $1.67 | $1,978.67 | 7.89% |
| SmartCentres REIT | $26.78 | 934 | $1.85 | $1,727.04 | 6.91% |
| $3,705.71 |
You will earn back your $50,000 through dividends spread over 12 years while your invested amount remains stable or grows by 10–20%. The stocks will keep paying you dividends beyond 12 years as long as you are alive and the company thrives, or until you sell the shares.
A stock for emergencies and growth
The above passive income can help cover your daily expenses and be used in conjunction with your Canada Pension Plan and Old Age Security, which you will receive throughout your lifetime. However, beyond these income sources, you also need to set aside some money for emergencies and wealth creation in case any major expense comes up.
For that, Descartes Systems (TSX: DSG) is an ideal stock. Its growth is resilient and can double your money in five years. The company’s supply chain management and logistics solutions are in demand. It earns a majority of its revenue from the United States and benefits from trade volumes.
Some years report strong growth of 50%. Now is a good time to invest as the stock is trading closer to its 52-week low. The next year could see a sharp recovery as the impact of the tariff war eases. A 40–50% recovery rally is likely as the global supply chain undergoes structural changes. A $25,000 investment today can prepare you for emergencies in three to five years.
