Finding the right stocks can make a huge difference in any eventual retirement income. In fact, picking those stocks today can make your money work harder without lifting a finger.
To meet that goal and make your money work harder, you need the right stocks in your portfolio. Fortunately, here’s a trio of options that can help investors do just that.
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Start with a stellar income giant
One of the best long-term investments to consider owning right now is Telus (TSX: T). As one of Canada’s big telecom stocks, Telus offers investors a growing dividend backed by a long-term defensive revenue stream.
That defensive appeal has only grown in recent years thanks to the subscriber-based model that Telus adheres to.
And unlike its peers, Telus also boasts a growing digital services group. That segment generates a growing complementary revenue stream by offering digital services to niche segments of the market, such as healthcare and agriculture.
As an income stock, Telus really shines as one of the stocks to make your money work harder. The company offers a quarterly dividend that, as of the time of writing, pays out an insane 7.2% yield.
This means that even a $5,000 investment in Telus today will earn over $360 in the first year alone. Investors who want to make their money work harder don’t need to do anything.
Given the current yield, that initial outlay will generate over a dozen shares each year through reinvestments alone. Throw in the fact that Telus has provided better than annual increases to that dividend for two decades, and you have a stellar pick for long-term income growth.
Continue investing with this defensive gem
While Telus is a great defensive stock for long-term investors, there is another option to consider. That option is Fortis (TSX: FTS), which is one of the largest utility stocks on the market.
Fortis boasts 10 operating regions across the U.S., Canada, and the Caribbean. Those regions generate a reliable and recurring revenue stream that allows Fortis to invest in growth initiatives and pay a generous quarterly dividend.
On the growth side, Fortis is an exception to the typical utility stock. The company has taken an aggressive stance on expansion, which has helped it grow into the $35 billion behemoth it is today.
In recent years, that growth has led Fortis to invest in improving its facilities and transitioning to renewables. The utility earmarked a whopping $26 billion capital fund over the next several years to fund those improvements.
As an income stock, Fortis really excels. The reliability that it offers makes it the perfect buy-and-forget stock. This means that, like Telus, investors can purchase shares today and let reinvestments handle the growth lift for the next decade.
As of the time of writing, Fortis offers a tasty 3.5% yield. The utility has also amassed an incredible five decades of consecutive annual increases, furthering its appeal to long-term investors.
In short, Fortis is a stock that will make your money work harder without you.
This stock will make your money work harder
It would be nearly impossible to compile a list of stocks to make your money work harder without mentioning at least one of Canada’s big banks. And that big bank stock for investors to consider now is Bank of Nova Scotia (TSX: BNS).
Scotiabank isn’t the largest of the big banks. It falls in the middle of the pack, but it is the most international of the banks. And it’s that growing international presence that is fueling long-term growth, providing Scotiabank with a unique advantage over its big bank peers.
In recent years, Scotiabank has shifted its growth focus outside of volatile high-growth markets in Latin America to more mature markets in North America. Concurrently, the bank has also continued to thrive at home.
In terms of income, Scotiabank offers a juicy quarterly dividend paying out a juicy 5.6% yield. This handily makes the bank one of the stocks that will make your money work harder for you.
Make your money work harder starting today
No stock is without risk, but the three stocks above can counter that risk with defensive appeal and juicy yields.
In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.
