A retirement paycheque doesn’t need every company doing the same job. One business can earn from lending money and managing wealth, while another gets paid to keep electricity and gas flowing. Putting them together gives an income account two different engines. With $30,000 split equally, the current payments from this pair would add up to roughly $1,000 annually, before any future increases.
Source: Getty Images
A bank job
Royal Bank of Canada (TSX: RY) offers Canadian banking, wealth management, insurance, and capital markets. Borrowers paying interest supply part of its income, while customers investing, trading, and seeking advice supply fees. That breadth gives earnings more support than mortgage lending alone.
Third-quarter adjusted earnings were $4.28 per share. Against a quarterly dividend of $1.76, that payment used about 41% of adjusted profit. The comparison shows the bank keeping earnings for lending, financial protection, and future growth instead of sending everything to shareholders.
A downturn can still raise loan losses and reduce market-related fees. The roughly 2.5% starting yield isn’t especially generous. Royal Bank’s contribution to this plan includes the possibility of growing earnings and dividends over years.
Utility supplies cash
Emera (TSX: EMA) owns regulated electricity and gas utilities, including substantial operations in Florida and Atlantic Canada. Customers keep needing power through an economic slowdown, although the company must finance infrastructure and recover approved costs through customer rates.
Its first-half dividends used about 71% of adjusted earnings. That leaves less earnings cushion than Royal Bank’s latest quarterly comparison, and utility earnings vary by season. I wouldn’t call the payments equally protected. Emera earns its allocation by supplying more starting income from a different customer need.
The approximately $20 billion investment plan for 2026 to 2030 can add assets that earn regulated returns. Financing costs and delays approving customer rates could reduce the benefit, especially after the Bank of Canada’s October rate increase. Bigger spending earns shareholders more only when the projects generate a satisfactory return.
The $30,000 purchase
Using recent closing prices, here’s a $15,000 budget for each holding. Shares are rounded down, fees are excluded, and annual income assumes four payments at each company’s current quarterly rate.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| RY | $285.42 | 52 | $7.04 | $366.08 | Quarterly | $14,841.84 |
| EMA | $70.08 | 214 | $2.96 | $633.44 | Quarterly | $14,997.12 |
| TOTAL | 266 | $999.52 | Quarterly | $29,838.96 |
That leaves $161.04 unspent. The invested amount yields about 3.4% and produces $249.88 each quarter across the two holdings, averaging $83.29 monthly. Payment dates won’t necessarily coincide, so I’d collect the cash before making a regular monthly transfer.
Emera supplies most of today’s income, while Royal Bank adds a different earnings mix. That’s the bargain I’d be making. Buying more of the higher-yielding stock would increase the immediate payment and put more of the plan behind the same financing and regulatory risks.
How growth can change the payment
Let’s say, for example, the combined annual dividend grew 3% a year, and the share count stayed unchanged. The $999.52 starting income would reach about $1,159 after five increases and $1,343 after 10. That’s dividend growth, not a forecast of share-price returns. Reinvesting would add another source of income growth by buying more shares.
Emera’s 2026 circular shows $100 growing to $160.68 over 2021 to 2025 with dividends reinvested. The five-year compound annual growth rate (CAGR) sits at about 10% at writing. That’s Emera’s record, not this pair’s return. It already includes dividends, which shouldn’t be added again. I’d use a slower rate when planning future income.
Bottom line
I’d use this pair as part of a broader account, with cash for near-term bills and other industries alongside it. Held inside a Tax-Free Savings Account (TFSA), with enough personal contribution room, the income can generally be withdrawn tax-free. Future purchases and affordable dividend increases can turn this first $83 monthly average into a larger spending allowance over time.
