3 Great Canadian Dividend Stocks to Build Retirement Wealth

Building wealth for retirement requires years of consistent saving and investing in quality assets that generate reliable income. One of the best ways to achieve this goal is to own Canadian dividend stocks for the long term that have a history of delivering stable payouts and operate in resilient industries.

Canada has a number of such companies that are well-suited for retirement portfolios. Here are three great Canadian dividend stocks that could help you build wealth for your golden years of retirement.

Pembina Pipeline stock

Pembina Pipeline (TSX:PPL) stock has seen around 10% gains so far in 2024 to currently trade at $50.02 per share with a market cap of $28.9 billion. This Calgary-headquartered energy infrastructure firm provides a range of energy transportation and midstream services. At the current market price, PPL stock offers a decent 5.5% annualized dividend yield, and it has raised its annual dividend payouts by around 61% in the 10 years ended in 2023.

In the first quarter, Pembina posted a record quarterly adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of around $1.04 billion, reflecting a strong 10% YoY (year-over-year) increase. To add optimism, its adjusted EBITDA margin in the latest quarter also jumped to a solid 67.8% compared to just 41.2% a year ago.

Pembina’s consistent focus on strategic acquisitions and expansion with the help of new projects brightens its long-term growth outlook, making it an ideal Canadian dividend stock to build retirement wealth.

Canadian Imperial Bank stock

Canadian Imperial Bank of Commerce (TSX:CM) is another top dividend stock on the Toronto Stock Exchange you may want to add to your retirement portfolio right now. It currently has a market cap of $60.2 billion as its stock trades at $66.15 per share after rallying by about 20% over the last year. It has a 5.4% annualized dividend yield at the current market price, and the bank has raised its dividends by around 81% in the last 10 years between its fiscal year 2013 and 2023 (ended in October 2023).

In the April 2024 quarter, Canadian Imperial Bank’s revenue rose 8.1% YoY, helping the bank deliver around 3% positive growth in adjusted quarterly earnings. Although like most other banks, higher provisions for credit losses have affected its profitability of late, its strong capital ratios and solid balance sheet give it enough headroom to keep rewarding its shareholders with generous dividends even amid such temporary macroeconomic uncertainties.

Great-West Lifeco stock

Great-West Lifeco (TSX:GWO) is a Winnipeg-based company with a main focus on financial services like life and health insurance, asset management, and retirement solutions. After rising by around 5% over the last year, GWO stock currently trades at $39.09 per share with a market cap of $36.5 billion. This Canadian dividend stock, which is also a part of the TSX Composite Index, offers a 5.7% annualized dividend yield at the current market price. Over the last 10 years ended in 2023, GWO stock’s dividend per share has gone up by nearly 72%.

In the first quarter of 2024, improved market conditions and strategic business growth helped Great-West Lifeco report record adjusted earnings of $1.09 per share, up 25.3% YoY. Although the ongoing macroeconomic challenges could keep its stock volatile in the short term, its strong regulatory capital positions, along with its focus on investments in technology and integration of new businesses, could help it grow at a faster pace in the long run. These positive factors make it an excellent Canadian stock to buy right now, especially if you want to earn safe dividend income to build retirement wealth.