Retirees are typically more risk-averse, as they no longer have a steady income to support daily expenses and often have a shorter investment horizon, leaving less time to recover from market downturns. As a result, their focus tends to shift toward preserving capital while generating stable and dependable passive income.
With this in mind, retirees should consider investing in high-quality dividend-paying companies with well-established businesses, strong track records of consistent payouts, and attractive yields. Against this backdrop, here are two top stock picks that stand out for retirees.
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Enbridge
Enbridge (TSX: ENB) is a leading energy infrastructure company that transports oil and natural gas across North America through its extensive pipeline network. In addition, it operates three natural gas utility assets in the United States and owns a growing portfolio of renewable energy projects supported by long-term power-purchase agreements (PPAs). With approximately 98% of its earnings derived from regulated assets and long-term contracts—about 80% of which are indexed to inflation—its financial performance is largely insulated from commodity price swings and broader market volatility.
This stability enables Enbridge to generate consistent, reliable cash flows, supporting an impressive 70-year dividend-paying history. The company has also increased its dividend for 31 consecutive years and currently offers an attractive forward yield of around 5.47%.
Looking ahead, the Organization of the Petroleum Exporting Countries expects oil and natural gas to remain key energy sources, accounting for roughly half of global energy demand by 2045, even as the transition to cleaner energy continues. At the same time, rising production and consumption across North America should sustain demand for Enbridge’s infrastructure and services.
The company has also identified approximately $50 billion in growth opportunities and plans to invest $10–$11 billion annually to capitalize on them. These initiatives could drive mid-single-digit growth in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and discounted cash flow per share.
Given its healthy financial position, including a net debt-to-EBITDA ratio of 4.8, and its visible growth pipeline, Enbridge appears well-positioned to continue delivering steady, growing dividends, making it an appealing option for retirees.
Bank of Nova Scotia
Bank of Nova Scotia (TSX: BNS) is another high-quality stock that stands out as a solid choice for retirees. The bank has an exceptional dividend history, having paid dividends uninterrupted since 1833. It offers a broad range of financial services across more than 55 countries. Its diversified revenue streams help reduce exposure to market volatility, supporting steady cash flows and consistent dividend payments. The bank has also increased its dividend at an annualized rate of 4.7% over the past decade and currently offers a forward yield of about 4.24%.
Backed by strong performance across its core business segments, BNS continues to show improving financial results. In its most recent first-quarter fiscal 2026 earnings, adjusted earnings per share rose 16.5% to $2.05. Additionally, its CET1 (common equity tier-one) ratio increased by 10 basis points to 13.3%, supported by earnings growth and the positive impact of divesting certain Latin American operations. A higher CET1 ratio indicates a stronger capital base and greater resilience during periods of economic uncertainty.
Strategically, the bank is focusing on expanding its higher-margin, lower-risk North American operations while reducing its exposure to lower-margin Latin American markets. This shift could enhance earnings stability and support sustainable long-term growth.
Given its improving financial performance, disciplined strategy, and strong dividend track record, BNS appears well-positioned to continue delivering reliable, growing income, making it an attractive option for retirees.
