Luckily, there’s no shortage of great options on the market, and that includes stocks for retirees.
Here’s a look at a trio of options for every silver-lined portfolio. Let’s call them the pillars of your portfolio.
Pillar #1: Defense
The first option for those looking for stocks for retirees is Fortis (TSX:FTS). As one of the largest utilities on the continent, Fortis is a ballast for any portfolio.
The company generates a stable, recurring revenue stream, supported by long-term regulated contracts spanning decades.
This income stream in turn allows Fortis to continue investing in growth while paying out one of the most stable dividends on the market.
At the time of writing, that dividend yields 3.59%. Even more impressive. Fortis has offered investors annual increases in that dividend for 52 years in a row without fail.
Fortis plans to continue this trend and invest in growth. This makes it one of the stocks retirees should consider.
Pillar #2: Inflation hedge
The second part of a stock portfolio for retirees is setting up an inflation hedge. Simply put, prices keep rising, so if your income doesn’t keep up, you could quickly fall behind.
Happy, Enbridge (TSX:ENB) offers investors a strong case as an inflation hedge.
The company is best known for its pipeline business, which includes both crude and natural gas. The sheer necessity and size of Enbridge’s network makes the pipeline sector one of the most defensive choices in the market.
In short, Enbridge generates revenue passively, like a toll road, regardless of how oil prices move.
Add to that the other parts of Enbridge’s impressive portfolio. They include a growing renewable energy company and a natural gas company. Both offer yet another revenue stream, supported by regulatory contracts that provide recurring and stable revenue.
Perhaps best of all for those looking at stocks for retirees is Enbridge’s quarterly dividend. The company has been paying a quarterly dividend for decades without exception. At the time of writing, Enbridge’s dividend has a yield of 5.8%, with 30 consecutive years of increases.
That fact alone makes this a top candidate for those looking for retiree stocks.
Pillar #3: Growth and stability
Tapping into a pension income stream should not mean sacrificing growth. And that’s exactly why Toronto-Dominion Bank (TSX:TD) is the #3 dividend stock for retirees.
TD is the second largest of the major banks. As such, it benefits from the well-regulated market in Canada and the reliable revenue generated from that market.
The bank is also investing heavily in the US market, which is the bank’s main growth focus. In fact, TD’s U.S. presence now extends from Maine to Florida, competing with its core domestic segment in the number of locations.
That growth is expected to continue as TD not only continues to reduce costs, but also invests in growth initiatives. At the time of writing, TD is up to date at an impressive 57%.
Perhaps even more impressive is that experts see growth set to continue. TD excels even in times of volatility. Much of that impressive American network was developed after the Great Recession.
As far as dividends go, TD is just as impressive, especially as one of the stocks retirees should consider. TD offers a robust quarterly dividend yielding 3.6%. The bank has also offered investors annual increases to that dividend, including the most recent increase announced this week.
In short, as one of the stocks for retirees, TD offers growth and income opportunities for any portfolio.
Are you buying these shares for retirees?
The trio of stocks mentioned above represent great stocks for retirees. They offer growth, defensive appeal and stable dividends. But they are not only attractive to retirees.
Even a new investor who is still decades away from retirement can benefit from the long-term appeal of these stocks. As such, they should be part of any well-diversified portfolio.
Buy them, hold them and watch your income grow.
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