Canadian Retirees: 3 Safe Dividend Income Stocks to Buy and Hold Forever

Adam Othman
·3 min read
Retirement

Canadian retirees are entitled to several government benefits to help them secure retirement income. However, the retirement programs like the Old Age Security (OAS) and Canada Pension Plan (CPP) have been designed to partially replace your pre-retirement income. Depending on the kind of lifestyle you see yourself living in your golden years, it might be necessary to have a significant nest egg and passive income to supplement your retirement income.

A Tax-Free Savings Account (TFSA) portfolio that consists of high-quality dividend stocks could be an excellent way to create a tax-free passive-income stream to achieve this purpose. I will discuss three such stocks that you can consider for your TFSA dividend income portfolio.

Fortis

Fortis (TSX:FTS)(NYSE:FTS) is a utilities holding company that owns and operates several regulated businesses. These businesses generate reliable and predictable cash flows for the company, allowing it to raise its dividends for the last 37 years and boosting shareholder returns. The stock is trading for $56.67 per share at writing, boasting a juicy 3.56% dividend yield.

The company’s management plans to raise its dividends by an average of 6% and boost its rate base at a CAGR of 6% in the next five years. The company’s rate base growth and favourable rate revisions could improve its financials in the coming years, further boosting its shareholders’ returns.

Canadian Utilities

Canadian Utilities (TSX:CU) is a company involved in power generation and utility distribution. It has a terrific track record of paying its investors increasing dividends for decades. The company has increased its dividends consistently for the last 49 years, giving it one of the longest dividend-growth streaks in the Canadian stock market.

The company’s low-risk utility businesses generate a significant portion of its revenues, delivering reliable cash flows. The stable cash flows have allowed the company to raise its dividends for almost five decades. Trading for $35.94 per share at writing, Canadian Utilities stock boasts a juicy 4.89% dividend yield.

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) is another Canadian Dividend Aristocrat that boasts a robust dividend-growth streak. The company has been increasing its shareholder dividends for the last 21 years at an annualized growth rate of 7%. The company operates a highly regulated portfolio of energy infrastructure facilities, relying on regulated or long-term contracts to generate 95% of its revenues.

Most of its cash flows coming from regulated or long-term contracted assets means that the company can generate stable and predictable revenues. Its consistent cash flows have allowed the company’s management to raise its dividends. TC Energy’s management plans to invest $20 billion in the next four years to raise its rate base and boost its financials. The stock is trading for $64.16 per share at writing, boasting a juicy 5.42% dividend yield.

Foolish takeaway

A TFSA portfolio that consists of high-quality dividend stocks can add significant passive revenue to your overall retirement income without adding more taxable income, making it an ideal method to supplement your retirement income. Fortis, Canadian Utilities, and TC Energy could make excellent picks as foundations to such a portfolio.

The post Canadian Retirees: 3 Safe Dividend Income Stocks to Buy and Hold Forever appeared first on The Motley Fool Canada.

Speaking of stocks to consider for your TFSA portfolio…

5 Canadian Growth Stocks Under $5

We are giving away a FREE copy of our "5 Small-Cap Canadian Growth Stocks Under $5" report. These are 5 Canadian stocks that we think are screaming buys today.

Get Your Free Report Today

More reading

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.

2021

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Brixton Academy opens doors again more than a year after fatal crush

    The venue had heavy security for the reopening.

  • Bitcoin halving: How will crypto miners be affected?

    Investors are anticipating the bitcoin (BTC-USD) halving event in the near future, as soon as this weekend. The price of bitcoin has retreated from its recent highs and is currently trading above $64,000 as of Friday. During this event, the reward for mining new bitcoin blocks is cut in half, slowing down the rate at which new bitcoins are introduced into circulation. Yahoo Finance's Julie Hyman and Madison Mills break down the details, providing insights into the implications for bitcoin miners' profit margins. Want to learn more about the bitcoin halving? Watch this video from Yahoo Finance for a quick explainer: Bitcoin halving: Explained For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Angel Smith

  • Woman missing for weeks may be in Arizona state park, family says. ‘We are devastated’

    “We need all the help we can get to help find her and find answers.”

  • Man sets himself on fire outside Trump trial court

    A man set himself on fire outside the New York court where Donald Trump’s hush money trial was being held on Friday.

  • Gov. Moore "incredibly encouraged" on efforts to secure federal funding for bridge rebuild

    An aerial view of the wreckage draped across the bow of the Dali provides a clearer picture of the work crews still have cut out for them. "This is the road. That is literally the road from the Key Bridge that's sitting on top of the ship," Governor Moore said as he showed reporters the image during a Friday press conference.

  • Stars waited late to find out they get playoff rematch against the defending Stanley Cup champions

    FRSICO, Texas (AP) — Tyler Seguin got sidetracked on his way to bed when he checked the scores from the two games on the West Coast that would determine who the Dallas Stars would face in the first round of the NHL playoffs. “I went in the living room just to see what was going on,” Seguin said in the Stars locker room Friday. Matt Duchene was watching as well from his home late Thursday night, and kept waking up his wife to tell her who the Stars would be playing. That changed a couple of times

  • Leafs, Jets, Oilers and Canucks carry Canada's Cup hopes with drought at 30 years

    Josh Morrissey remembers the city coming to life before his eyes. A nine-year-old Flames fan in the spring of 2004, he was captivated by every Jarome Iginla chance and Miikka Kiprusoff save during Calgary's run to the Stanley Cup final. "It was just an awesome experience," said Morrissey, now a star defenceman for the Winnipeg Jets. "Living and dying on every win and loss." Hockey fans across Canada are once again preparing themselves to experience that annual thrill and torment. The Jets, Vanco

  • Minority stake of Buffalo Bills for sale

    7 News has learned the Buffalo Bills are open to selling a minority stake of the team. The news was first reported by Tim Graham of The Athletic.

  • The Latest | Opening statements in Trump hush money trial set for Monday after latest appeal fails

    NEW YORK (AP) — Opening statements in Donald Trump's hush money case are set to begin next week after a jury of 12 people and six alternates was seated Friday. The seating of the jury sets the stage for weeks of testimony in a case charging Trump with falsifying business records to suppress stories about his sex life emerging in the final days of the 2016 election. A failed last-minute bid in appeals court by the former president’s lawyers to stay the trial, as well as a hearing to decide whethe

  • Canucks' Rick Tocchet among new coaches making an impact in leading teams to NHL playoffs

    Rick Tocchet barely had a chance to get accustomed to the Pacific time zone when the newly hired Canucks coach wondered what exactly he had just gotten himself into in late January 2023. Four days and two games into his tenure, Tocchet recalled the feeling of dread he experienced standing on a Vancouver street corner at 3 a.m. after the team returned home from Seattle following a 6-1 loss, in which the coach referred to the Canucks being “soft.” “I felt like I got hit by a bus,” Tocchet told The

  • Michael Porter Jr.'s younger brother, Coban, sentenced to 6 years in prison for fatal DUI crash

    Former University of Denver basketball player Coban Porter, the younger brother of Denver Nuggets star Michael Porter Jr., was sentenced Friday to six years in prison for killing a 42-year-old woman in a drunken driving crash last year. Denver District Court Judge Ericka Englert told Porter, “Do what you can to use this opportunity to educate others” about the dangers of driving drunk. “All I can really say is, ‘I’m sorry,’” Porter said in court.

  • Seeking to curb player agent fees, FIFA's Infantino calls on lawmakers for help and targets England

    ZURICH (AP) — FIFA has called on lawmakers to help control payments to player agents in the multi-billion dollar soccer transfer market, and targeted the world’s richest league in England. English clubs paid 500 million euros ($530 million) in fees to agents in the year to February, FIFA president Gianni Infantino said on Friday, while paying just 6% of that amount — 30 million euros ($32 million) — to foreign clubs “that trained and developed the players signed.” “Most of this money is leaving

  • ‘Wow, not here. Not in Cockeysville'

    Night had fallen on the Wintergreen apartment complex in Cockeysville when gunshots pierced through the darkness. “I was sitting there watching TV, all the sudden you hear, ‘Blum! Blum! Blum! Blum! Blum! Blum!’” one neighbor hold us who asked us to conceal his identity for his own protection. Police would later limit their comment on what had happened. See more: https://www.wmar2news.com/local/wow-not-here-not-in-cockeysville

  • Westside High School hosts mock crash to show students' dangers of drunk driving

    Westside High School juniors and seniors participate in a mock crash to raise awareness about drunk driving.

  • Timberline Lodge damaged in fire on Mt. Hood, Oregon

    Firefighters doused a late-night fire at Oregon’s historic Timberline Lodge — featured in Stanley Kubrick’s 1980 film “The Shining” — before it caused significant damage

  • Families of Nottingham stab victims glad date has been set for killer’s sentence appeal

    The families of three people stabbed to death in Nottingham say they are glad a date has been set to review the sentence handed to killer, Valdo Calocane.

  • First man charged in Crystal Rogers case asks to be tried separately

    First man charged in Crystal Rogers case asks to be tried separately

  • Court records allege 25-year-old accused of causing deadly wrong-way crash on I-80 was drunk

    Court documents provide new details in the deadly car crash on Interstate 80 on Apr. 13 that killed two people and injured two others.

  • Dogs seized from A Canine Gem to participate in Meet and Greet

    Dogs seized from A Canine Gem to participate in Meet and Greet

  • T-wolves take NBA's best defense into series vs. Suns, but can it stop Durant-Booker-Beal trio?

    MINNEAPOLIS (AP) — Defense has been far more of an afterthought than an asset over the checkered history of the Minnesota Timberwolves, who have the second-fewest wins in the NBA since their entry 35 years ago and have advanced out of the first round of the playoffs only once. This has been quite the season of transformation for the Timberwolves, an improvement that started over the summer with Rudy Gobert. The success of their defense is rooted in his 7-foot-2 presence, too. “There’s a differen