Retirees, who typically lack a steady income stream, tend to be more risk-averse and focused on preserving their capital. At the same time, they seek reliable sources of passive income to support their lifestyle. As a result, they should prioritize investing in companies with established business models, a strong history of consistent dividend payments, and attractive yields.
With this in mind, let’s explore four TSX-listed stocks that are well-suited for retirees seeking stable and dependable passive income.
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Fortis
Fortis (TSX: FTS) is a solid choice for retirees seeking stable and predictable income. The company owns and operates nine regulated electricity and natural gas utilities, serving approximately 3.5 million customers across the United States, Canada, and the Caribbean. Notably, about 95% of its assets are concentrated in low-risk transmission and distribution businesses, which helps shield its financial performance from market volatility and economic cycles.
Backed by its resilient cash flows and stable financials, Fortis has an impressive track record of increasing its dividend for 52 consecutive years. It currently offers a forward dividend yield of around 3.2%, making it a dependable income-generating option.
Looking ahead, the utility focuses on expanding its asset base to meet rising energy demand, with plans to invest $28.8 billion through 2030. These investments could grow its rate base at an annualized rate of 7% to $57.9 billion. Coupled with ongoing cost optimization and efficiency improvements, this expansion should support steady earnings and dividend growth.
Management has also indicated its intention to increase dividends by 4–6% annually through the remainder of the decade, further reinforcing Fortis as an attractive long-term holding for income-focused retirees.
Enbridge
Another dividend stock I believe is ideal for retirees is Enbridge (TSX: ENB), which has raised its dividend uninterruptedly for 31 years. The midstream energy company earns a substantial percentage of its earnings from regulated assets or long-term contracts. Besides, around 80% of its earnings are indexed to inflation, shielding its financials from rising input costs. Therefore, it enjoys stable, reliable cash flows, which have enabled it to raise its dividend consistently. Meanwhile, its forward yield currently stands at a healthy 5.1%.
Moreover, rising oil and natural gas production and demand in North America continue to drive demand for Enbridge’s services. Meanwhile, the company has identified $50 billion in growth opportunities and plans to invest $10–$11 billion annually to fund these projects, thereby driving its financial performance and supporting dividend growth in the coming years.
Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) is a strong option for retirees seeking dependable and growing income. The company owns large, low-risk reserves that require relatively low capital reinvestment, while its efficient operations help keep costs down and support robust cash flows.
Backed by this solid financial performance, CNQ has increased its dividend at an annualized rate of over 20% for 26 consecutive years and currently offers a forward yield of about 3.9%.
Despite the global shift toward cleaner energy, oil and natural gas could remain key components of the energy mix. CNQ holds more than 5 billion barrels of oil equivalent in proven reserves, with a reserve life index of 32 years. With planned capital spending of $6.4 billion this year to enhance production, the company appears well-positioned to sustain dividend growth, making it an attractive choice for income-focused retirees.
Bank of Nova Scotia
My final pick is Bank of Nova Scotia (TSX: BNS), a globally diversified financial institution offering a wide range of banking services across more than 55 countries. Its diversified revenue streams support strong and stable cash flows, enabling the bank to pay dividends consistently since 1833. Over the past decade, it has grown its dividend at an annualized rate 4.7% and currently offers an attractive forward yield of about 4.5%.
The bank’s operating and financial performance is also showing signs of improvement. It is increasingly focusing on expanding its North American operations while scaling back exposure to higher-risk Latin American markets. This shift could drive more stable and sustainable earnings growth.
Additionally, its recently announced share repurchase program – covering 15 million shares over the next 12 months – should reduce its share count and enhance shareholder returns. Taken together, these factors position BNS as a strong dividend stock for long-term income investors.
