However, the situation is now very different. Any standard retirement program cannot cover all the costs you may incur during your retirement. A good pension scheme takes into account standard pensions, but also takes steps to supplement that pension income.
Investing in the stock market can be an excellent method to make your retirement a lot easier. Instead of worrying about creating more income streams, build a self-managed retirement plan starting today. Dividend investing offers the best possible options for this.
Today I’ll discuss two high-quality dividend stocks that can be part of a solid income-oriented dividend stock portfolio.
Hydro One
Hydro One (TSX:H) is a Canadian utility company with a market capitalization of $31.25 billion. It owns and operates a portfolio of regulated transmission and distribution assets across Ontario. Because the provincial government owns about half of it, Hydro One is a government-backed utility with a monopoly in the province.
Hydro One stock pays investors $0.3331 per share every quarter, which translates into a dividend yield of 2.56%. While it doesn’t offer high-yielding dividends, it does offer plenty of potential for capital gains. At the time of writing, Hydro One stock is trading at $52.11 per share. Over the past five years, it has increased by 75.75%. If you’re looking for a dividend-paying stock that also offers growth through capital gains, Hydro One stock could be a good investment to consider.
Accept
Accept (TSX:EMA) is another regulated utility to consider. The energy and services company with a market capitalization of $20.21 billion invests in electricity generation, transmission and distribution. It also has assets that provide gas transmission and utility energy services. Rather than being region specific and enjoying a monopoly, it has operations throughout North America and the Caribbean.
Emera stock pays its investors $0.7325 per share every quarter, which translates into a dividend yield of 4.34%. While it may not boast the kind of track record that Hydro One has for capital gains, Emera’s stock more than makes up for this with high-yielding but reliable dividends. At the time of writing, Emera stock is trading at $67.52 per share. If you’re looking to balance growth with reliable dividend income, Emera shares could be a good investment to consider.
Silly takeaway
Create passive income streams while actively making money may seem like a hassle at this point. However, it can be a gift that keeps on giving, especially during the best years of your life. Building a portfolio of income-producing assets retirement accounts can help you achieve the financial freedom everyone desires during their golden years.
Against this backdrop, Hydro One and Emera shares may be good investments to consider as part of a solid retirement plan.
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