Retirees Seek Reliable Dividend Stocks for Steady Income

Retirees looking for stable investment income are increasingly turning to reliable dividend stocks. These investments offer the potential for consistent returns while helping to offset inflation. Here, we explore three solid dividend-paying companies that stand out for their robust financial fundamentals and long histories of dividend growth.

Fortis: A Strong Utility Investment

Fortis (TSX:FTS) is a utility company catering to the energy needs of approximately 3.5 million customers across the United States, Canada, and the Caribbean. The company operates a low-risk transmission and distribution business, which provides a level of protection against economic fluctuations and market volatility. Fortis has a commendable track record, having raised its dividend for an impressive 51 consecutive years. Currently, the stock offers a forward dividend yield of 3.6%.

Looking ahead, Fortis appears well-positioned for future dividend payouts, bolstered by an expanding asset base. The company has committed to capital investments of $2.9 billion in just the first two quarters of the year and plans to invest a total of $5.2 billion in 2025. Over the next few years, Fortis aims to allocate about $20.8 billion from 2026 to 2029, targeting a compound annual growth rate (CAGR) of 6.5% to raise its rate base to $53 billion. Management anticipates annual dividend increases of 4-6% through 2029, providing a solid outlook for income-seeking investors.

Enbridge: Diversified Energy Leader

Another strong option for retirees is Enbridge (TSX:ENB), a diversified energy company known for its extensive pipeline network that transports oil and natural gas across North America. Through a tolling framework and long-term contracts, Enbridge has established a reliable revenue stream. The company’s commitment to renewable energy, backed by power-purchase agreements, further enhances its financial stability, making it resilient to broader market conditions. Enbridge has maintained its dividend payments for 70 years, with an annualized growth rate of 9% since 1995 and a current forward dividend yield of 5.4%.

Enbridge is also focused on growth, investing between $9 billion and $10 billion annually to enhance its oil and natural gas transmission, distribution utilities, and renewable energy assets. This continuous investment is expected to support a projected annual growth of around 5% in EBITDA (earnings before interest, taxes, depreciation, and amortization), EPS (earnings per share), and DCF (discounted cash flows) per share in the medium term. With such growth prospects, Enbridge looks likely to sustain its dividend growth trajectory in the years ahead.

Bank of Nova Scotia: A Long-standing Financial Institution

The Bank of Nova Scotia (TSX:BNS), established in 1833, rounds out this list. Operating in over 55 countries across North America, Latin America, and Asia, the bank provides a broad range of financial services. Its diversified revenue sources contribute to stable cash flows, allowing for consistent dividend payments. The Toronto-based bank has increased its dividend at an annualized rate of 4.93% over the past decade, currently offering a forward dividend yield of 4.94%.

In its recent fiscal performance report for the third quarter of 2025, the Bank of Nova Scotia revealed a 15.3% increase in adjusted EPS. The bank’s CET1 (Common Equity Tier 1) capital ratio, which is a critical measure of its financial strength, rose by 10 basis points to 13.3%, reflecting healthy internal capital generation. The bank is strategically focusing on expanding its presence in the low-risk North American market while scaling back operations in Latin America. This approach may enhance its profitability by concentrating resources on higher-return opportunities. Consequently, the Bank of Nova Scotia appears well-equipped to continue rewarding shareholders with substantial dividends.

These three companies—Fortis, Enbridge, and the Bank of Nova Scotia—provide viable options for retirees seeking dependable income through dividend investments. Through their established histories of dividend growth and robust financial performance, these stocks could help mitigate the effects of inflation while offering stability in uncertain economic times.