Who says retirement is the end of work? With time on your hands, you can take up full-time investing, studying the financial reports and the markets, tracking the performance of the companies you invest in, and managing your portfolio. There is a notion that retirees should only invest in income-generating stocks where their returns are predictable.
There are ETFs, seasonal stocks, high-yield dividend stocks, high-dividend growth stocks, and opportunistic growth stocks that retirees would absolutely love. While your pension and dividend income meet your daily needs, you could set aside a small amount in your portfolio for slightly riskier investments that you can stay invested in for three years.
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Three stocks retirees should absolutely love
Opportunistic growth stock
Descartes Systems (TSX: DSG) is an opportunistic growth stock that retirees would love to hold. Trade volumes have dipped due to the US tariff war. They are expected to increase in 2026 due to supply chain shifts. Higher trade volumes will convert into organic revenue growth as Descartes offers single or multiple solutions, even for a single trade consignment.
It maintained its profit margins and revenue growth in 2025, driven by acquisitions and strong demand for trade intelligence and transport management solutions. Next year could see a return of trade volumes, driving demand for more solutions.
The 2025 correction was needed as the stock was overvalued in 2024, trading at a 73 times price-to-earnings (P/E) ratio, which is high for a company with 22% earnings per share (EPS) growth. The P/E ratio has corrected to 50 times and the forward P/E to 29 times. If EPS growth accelerates from trade recovery, Descartes’s share price could rally 40% to reach the previous high of $175. An investment for two years could grow your money by 50%.
High dividend growth stock
Canadian Natural Resources (TSX: CNQ) is a stock retirees would love, as the 7.6% dip in the share price in December has inflated the dividend yield to 5.4%. The company has been growing dividends by 2% and 50% for the last 25 years. In 2025, it adopted a new free cash flow (FCF) policy as it increased its debt to acquire more reserves. The company will focus on reducing net debt from $17.2 billion to $12–$15 billion by redirecting 40% of the FCF on debt repayment.
The dividend growth may slow to mid-single-digits in 2026 from 9.9% in 2025. However, dividend growth would accelerate in the coming years as the company reduces debt and share count through share buybacks.
A safe ETF to get market-linked returns
A market ETF is a perfect investment to tap into a recovery rally. The BMO S&P/TSX 60 Index Series Units ETF (TSX: ZIU) tracks the TSX 60 Index. The ETF has surged 24% so far in 2025 as energy, technology, and gold mining stocks outperformed and pushed up the overall index. The ETF could give a strong double-digit return in 2026 as tariff-affected stocks revive and construction picks up with the help of the government’s support for the nation-building budget.
Since the ETF is replicating the index, the management ratio is low at just 0.15%. You could consider investing in market ETFs even as a retiree.
How retirees should invest in the above stocks
Except for Canadian Natural Resources, the growth stock and market ETF give returns through capital appreciation. Retirees can invest $10,000 in each of the two stocks and withdraw the profits whenever the capital appreciates by 20–25%. So, if your $10,000 investment in Descartes grows to $12,500, you can sell shares worth $2,500 and retain the $10,000 investment. However, for 2026, you might want to wait for a 50% uptick before you cash out a profit.
Such investments can give you a high annual bonus when the market performs. However, there could also be periods of negative growth. Thus, you should have the flexibility to hold for three years, giving the stock time to recover from the negative growth.
