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4 TSX Dividend Stocks That Retirees Might Want On Their Radar

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Written by Rajiv Nanjapla at The Motley Fool Canada

With no regular employment income to cover day-to-day expenses, retirees often seek stable and reliable income streams while preserving their capital. Moreover, their shorter investment horizons leave them with less time to recover from market downturns, making capital preservation and income stability key priorities. As a result, retirees should focus on companies with established business models, reliable cash flows, and strong track records of consistent dividend payments.

Against this backdrop, let’s look at four Canadian dividend stocks that I believe are ideal for retirees.

Enbridge

One of the best dividend stocks for retirees is Enbridge (TSX:ENB). Its resilient business model, with approximately 98% of its earnings generated from long-term take-or-pay contracts and regulated assets, helps shield its financial performance from market volatility and economic cycles. In addition, nearly 80% of its earnings are protected against inflation, further enhancing the stability of its cash flows. This predictable cash flow profile has enabled Enbridge to maintain and grow its dividend consistently over time.

The company has paid dividends for 70 consecutive years and increased its dividend for 26 straight years. It currently offers an attractive forward dividend yield of 4.9%. Looking ahead, Enbridge is expanding its asset base through its $40 billion secured capital program to meet growing demand for its infrastructure and services as oil and natural gas production across North America continues to rise. These investments should support long-term earnings growth and strengthen the company’s ability to continue its dividend growth.

Fortis

Another dividend stock that I believe is ideal for retirees is Fortis (TSX:FTS). The utility company operates nine regulated businesses and serves approximately 3.5 million customers across North America. Since the majority of its assets are concentrated in low-risk transmission and distribution operations, its financial performance remains largely insulated from market volatility and economic cycles. Supported by this stable business model, Fortis has increased its dividend for 52 consecutive years and currently offers a forward dividend yield of 3.1%.

Looking ahead, the utility continues to expand its asset base through its planned five-year $28.8 billion capital investment program. These investments could increase its rate base at an annualized rate of 7%, reaching $57.9 billion by 2030. In addition, preventive maintenance initiatives, operational efficiencies, and innovative technologies should support earnings and cash flow growth, positioning Fortis to continue delivering steady dividend increases in the years ahead.



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