Of course, no investment is without risk. Yet dividend stocks, backed by strong fundamentals, often offer more stability than more speculative assets. They tend to be more resilient to market volatility and provide reliable income even in uncertain times.
So for retirees looking for both income and peace of mind, here are three Canadian dividend stocks to consider now.
Fortis
Fortis (TSX:FTS) is one of the most reliable dividend stocks for retirees to generate regular income. This utility operates a rate-regulated business and generates predictable cash flows regardless of market conditions. In addition, it focuses on energy transmission and distribution, reducing exposure to risks associated with energy generation and commodity price fluctuations.
Thanks to its defensive business model and growing cash flow, Fortis has consistently increased its dividend payments for 52 years. Currently, FTS offers a return of approximately 3.6%.
Looking ahead, Fortis’ $28.8 billion capital plan will enable the company to expand its regulated asset base and strengthen its profits. Management expects the company’s interest base to grow at a compound annual growth rate (CAGR) of 7% through 2030. This will support steady earnings growth and drive a 4% to 6% increase in dividends over the same period.
Furthermore, Fortis is well positioned to benefit from the increasing demand for electricity from data centres, mining and the manufacturing industry, allowing Fortis to achieve strong growth in the coming years.
Telus
Telus (TSX:T) is an attractive dividend stock to own for retirement income. This Canadian telecom leader has a history of consistently paying and growing its dividends through its multi-year dividend growth program. Since 2004, Telus has paid out more than $24 billion in dividends. Moreover, the company has increased its quarterly dividend several times since 2011 and offers a high yield of over 8%.
Telus’ payouts are supported by Telus’ ability to consistently deliver profitable growth and strong cash flow growth. Furthermore, it maintains a sustainable payout ratio of 60-75% of free cash flow. The company expects annual dividend growth to be between 3 and 8% through 2028.
The robust wireless network, bundled offerings and expansion of the TELUS PureFibre broadband infrastructure will grow the subscriber base, support customer retention and keep churn rates low. Furthermore, the focus on acquiring margin-boosting customers and implementing cost-saving initiatives bodes well for future earnings growth. In addition, the revenue diversification initiatives support growth and will drive future distribution.
Brookfield Renewable Partners
Brookfield Renewable Partners (TSX:BEP.UN) is a reliable retirement dividend stock. It is one of the leading players in the renewable energy sector and has a strong track record of consistent dividend growth. The payouts are supported by long-term contracts, robust cash flow and inflation-linked income. Moreover, it offers an attractive yield of 4.8%.
The company is well positioned to benefit from rising global demand for clean energy, driven by digitalization and the rise of AI. The strategic investments in technologies that increase grid reliability and accelerate the adoption of low-cost wind and solar energy ensure a solid growth trajectory. Brookfield’s diversified portfolio, which includes hydro, solar, wind, battery storage and nuclear, provides both stability and opportunities for expansion.
The company’s efficient operations, stable income from contracted assets and disciplined approach to capital recycling reflect the company’s ability to maintain and grow dividends. With management targeting annual dividend increases between 5% and 9%, Brookfield Renewable Partners offers investors a combination of reliable income and long-term capital growth, making it an attractive addition to any retirement-focused portfolio.
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