You only need 3 dividend stocks to earn income for a lifetime

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The mandate of the Canada Pension Plan Investment Board (CPPIB) is to manage contributor funds and ensure that CPP pension payments are available for generations to come. Although the CPP is for life, the CPPIB reminds retirees that this is only a retired foundation.

Since the annuity is a partial, not a total, replacement of average pre-retirement income, it would help boost your CPP for greater financial security. Some companies could match the CPPIB’s commitment to retirees. The Bank of Nova Scotia (TSX: BNS) (NYSE: BNS), Imperial Oil (TSX: IMO), and North West Company (TSX: NWC) can provide sustainable income to Canadian retirees.

Impeccable stock market performance

All the big banks are blue chip assets. The SNB is the third largest Canadian bank and pays the highest dividend in the banking industry. The $ 93.72 billion lender has been paying dividends for nearly 190 years. No retiree could survive or survive the longevity of BNS’s dividend history.

The bank stock trades at $ 77.13 per share and pays a dividend of 4.67%. The SNB is not immune to economic downturns or crises, but it supports them all, regardless of their magnitude. On the performance side, BNS is impeccable. Its total return over the past 48.81 years is 174,100.59% (compound annual growth rate of 16.52%). So far in 2021, investors are ahead 16.19%.

BNS’s financial results after the three quarters of fiscal 2021 were very impressive. Net income for the entire section is close to $ 7.4 billion, or 49.3% more than in the same period of fiscal 2020. Management is confident that the diversified business model will help maintain resilience. The SNB expects significant contributions from all operating segments in the coming quarters.

Dividend reliability

Imperial Oil in the energy sector does not attract the same attention as Enbridge and Pembina pipeline. The $ 26.05 billion producer of crude oil and natural gas doesn’t pay high dividends (2.65%) like the pipeline giants. However, their dividend track record is pale compared to IMO.

The $ 26.05 billion company reported profits of $ 391 million and $ 366 million in the first and second quarters of 2021. In the first half of this year, Imperial Oil’s net profit was amounted to $ 758 million, compared to a net loss of $ 714 million in the same period last year. At $ 36.97 per share (+ 56.52%), this energy value is one of the TSXthe most successful of. In addition, the price return over one year is 110.06%.

On the conference call for the first quarter of 2021, Imperial Oil CEO Brad Corson said, “We have reliably paid a dividend for over 100 consecutive years and increased it in each of the 26 last years. The horse’s mouth statement should give you the confidence to invest in Imperial Oil.

No hard sell

The North West Company is older than BNS and Imperial Oil and has been around since 1668. Its corporate existence is enough to tell you that the business is sustainable. The $ 1.6 billion retailer dominates markets in hard-to-reach areas of Canada. It also has a conquered market in Alaska, the South Pacific and the Caribbean.

I don’t need to dwell further on the merits of investing in this defensive title for consumers. North West’s total return over the past 31 years is 59,298.74% (22.87% CAGR). The current share price of $ 34.53 could go down, but the sure 4.27% dividend would provide the cushion just in case.

Incredible but true

It may sound incredible, but it is true. BNS, Imperial Oil, and North West Company are go-to assets and ideal sources of income if you want a lifetime income like your CPP.


This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .

Foolish contributor Christopher Liew has no position on any of the stocks mentioned. The Motley Fool owns shares and recommends Enbridge. The Motley Fool recommends BANK OF NOVA SCOTIA, PEMBINA PIPELINE CORPORATION and THE NORTH WEST COMPANY INC.


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