Compiling a list of dividend stocks for retirees is a different ask from assembling a portfolio for someone who still has 30 years to work and compound growth.
Fortunately, there’s no shortage of great options on the market, and that includes stocks for retirees.
Here’s a look at a trio of options for any silver-lined portfolio. Let’s call them the pillars of your portfolio.
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Pillar #1: Defence
The first option for those seeking stocks for retirees is Fortis (TSX: FTS). As one of the largest utility stocks on the continent, Fortis is a ballast for any portfolio.
The company generates a stable, recurring revenue stream backed by long-term regulated contracts that span decades.
That revenue stream, in turn, allows Fortis to continue investing in growth while paying one of the most stable dividends on the market.
As of the time of writing, that dividend carries a yield of 3.59%. Even more impressively. Fortis has provided investors with annual bumps to that dividend for 52 consecutive years without fail.
Fortis plans to continue that cadence and invest in growth. This makes it one of the must-have stocks for retirees to consider.
Pillar #2: Inflation hedge
The second part of a portfolio of stocks for retirees is establishing an inflation hedge. Simply stated, prices keep rising, so if your income doesn’t keep up, you can quickly get left behind.
Fortunately, Enbridge (TSX: ENB) offers investors a strong case as an inflation hedge.
The company is best known for its pipeline business, which contains both crude and natural gas . The sheer necessity and size of Enbridge’s network makes the pipeline business one of the most defensive picks on the market.
In short, Enbridge generates revenue in a passive manner like a toll road, irrespective of which way oil prices move.
Adding to that are the other pieces of Enbridge’s impressive portfolio. They include a growing renewable energy business and a natural gas utility. Both offer yet another revenue stream backed by regulatory contracts that provide recurring and stable revenue.
Perhaps best of all for those looking at stocks for retirees is Enbridge’s quarterly dividend. The company has paid out a quarterly dividend for decades without fail. As of the time of writing, Enbridge’s dividend carries a 5.8% yield with 30 consecutive years of increases.
That fact alone makes this a top contender for those seeking stocks for retirees.
Pillar #3: Growth & Stability
Utilizing a retirement income stream shouldn’t mean sacrificing growth. And that’s precisely why Toronto-Dominion Bank (TSX: TD) is the third of dividend stocks for retirees.
TD is the second largest of the big banks. As such, it benefits from the well-regulated market in Canada and the reliable revenue generated from that market.
The bank is also invested heavily in the U.S. market, which is the bank’s primary growth focus. In fact, TD’s U.S. presence now stretches from Maine to Florida, rivalling its core domestic segment in the number of branches.
That growth is set to continue as TD not only continues to slash costs but also invests in growth initiatives. As of the time of writing, TD is up year-to-date by an impressive 57%.
Perhaps more impressively, pundits see that growth is set to continue. In fact, TD excels during times of volatility. Much of that impressive U.S network was developed following the Great Recession.
Turning to dividends, TD is equally impressive, especially as one of the stocks for retirees to consider. TD offers a robust quarterly dividend that yields 3.6%. The bank has also provided investors with annual upticks to that dividend, including the most recent uptick announced this week.
In short, as one of the stocks for retirees, TD offers growth and income-earning opportunities for any portfolio.
Will you buy these stocks for retirees?
The trio of stocks mentioned above represents great stocks for retirees. They offer growth, defensive appeal, and stable dividends. But they aren’t just appealing to retirees.
Even a new investor with decades still before retirement can benefit from the long-term appeal of these stocks. As such, they should be part of any well-diversified portfolio.
Buy them, hold them, and watch your income grow.
