5 Stocks You’ll Want to Retire With (2024)

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Canadians can form a diversified portfolio with the top Canadian stocks and retire with them.

According to financial planners, saving and investing for retirement should start as early as possible. A 30-year time horizon at least should produce a substantial nest egg. If you start now, you can buy the top Canadian stocks and retire with them.

Dividend pioneer

Canada’s third-largest financial institution, Bank of Montreal (TSX:BMO), should be number one on the list. This $92.55 billion bank is TSX’s dividend pioneer. It started paying dividends in 1829, and its track record is nearly 200 years. If you invest today, the share price is $127.59, while the dividend yield is 4.73%.

In the first quarter (Q1) of fiscal 2024, revenue rose 50.5% to $7.67 billion versus Q1 fiscal 2023. However, net income fell 24.4% year over year to $1.29 billion, and the provision for credit losses increased 188.9% to $627 million from a year ago.

Expect the financials to improve as BMO has completed the integration of Bank of the West. At the start of Q2 fiscal 2024, it will also realize US$800 million in run-rate cost synergies.

Dividend King

Fortis (TSX:FTS) is Canada’s newly crowned and second Dividend King. The $26.19 billion electric and gas utility company has raised dividends for 50 consecutive years. “We remain focused on extending this track record as we execute our $25 billion five-year capital plan in support of our annual dividend growth guidance of 4% to 6% through 2028,” said David Hutchens, president and chief executive officer (CEO) of Fortis.

While utility companies are rate-sensitive, the low-risk business endures because of the highly regulated industry. Thus, besides the Dividend Aristocrat status, you have a defensive asset in Fortis. At $53.38 per share, the dividend offer is 4.42%.

Cash cow

A retiree’s stock portfolio won’t be complete without a cash cow. TELUS (TSX:T) has consistently delivered high revenue and profits for years in a competitive industry. At $22.35 per share, you can partake in the 6.73% dividend yield. Moreover, the $32.99 billion telecommunications company has a multi-year dividend program.

TELUS president and CEO Darren Entwistle confirmed that management aims to implement semi-annual dividend increases through year-end 2025 with a corresponding 7-10% dividend hike.

Vital industry

Canadian National Railway (TSX:CNR) operates in the freight rail industry, the backbone of Canada’s economy. At $175.04 per share, the $82.98 billion railway company pays a modest 1.95% dividend but has returned 1,789.24% in 20.02 years.

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Currently, CNR is the only rail carrier that serves three major petrochemical centers in North America (Alberta, southwestern Ontario, and the U.S. Gulf Coast). Its president and CEO, Tracy Robinson, said management is refining the path forward and advancing its growth mandate because CNR is railroading for the long term.

Safety net

Barrick Gold (TSX:ABX) is a safety net and hedge against inflation. The $36.3 billion company is the world’s second-largest gold miner. At $20.70 per share, the dividend yield is 2.62%. Now is the best time to take a position because of rising gold prices and growing gold and copper production.

Mark Bristow, president and CEO of Barrick Gold, said that apart from a solid base, the strong focus on discovery and development should drive the value of its tier-one assets.

Diversified portfolio

The five stocks are the cream of the crop in Canada. They can form a diversified portfolio that you can retire with.