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Investors face a major shift in strategy as retirement approaches. What began as long-term holding now means keeping cash on hand and creating new streams of income that can be poured into it at any time.
That’s why today we want to focus on the best stocks investors will want to buy before and during retirement. This is a safe strategy with long-term growth opportunities while adding passive income to the portfolio. Let’s quickly explain.
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There’s been a big shift from buying to renting in Canada, and frankly, it’s about time. However, the housing security problem in Canada remains unresolved. This means that great opportunities exist as more units are established in the country. Canadian Apartment Properties REIT (TSX:CAR.UN).
CAPREIT stock has been around for years and remains a strong investment for those seeking passive income today. The stock is up about 12% over the past year and 29% over the past nine months alone. As stocks continue to rise and interest rates continue to rise, we expect near-term growth in stocks.
However, there are opportunities for further growth in the long term. With more Canadians looking to rent rather than buy, CAPREIT shares are gaining a big foothold in the space. In addition, we continue to offer a diversified portfolio that includes other assets around the world.
Therefore, investors can bring in a dividend yield of 2.74% at the time of writing. This will increase passive income in the short and long term as well as growth. That way, you’ll be able to get a good night’s sleep after retirement.
BMO Stock
One of the safest investments Canadians can make is with a Big 6 bank. These institutions have existed for decades, Bank of Montreal (TSX:BMO) or more 200 For years! It’s safe if you’re looking for it, and that’s some.
Banks also offer an oligopoly of six big banks when it comes to security, with far less competition in Canada. In addition, Canadians have kept their cash safe in investments throughout the Great Depression and Depression, so there have been no banking crises since 1840. But when it comes to all six banks, BMO stock offers great deals, dividends and growth.
BMO shares snagged a huge deal when it acquired Bank of the West, giving investors a new source of income to consider. Moreover, the company is still trading in value territory with 12.2 times earnings and 2.8 times sales, even though the stock has fallen 6% in the last month. But it is already improving, rising 4% last month alone.
With a dividend yield of 4.6% at press time, still above the five-year average of 4.14%, it’s a great time to buy the stock for retirement. You get decades of steady growth, especially if you continue to expand in the US. In the meantime, bring passive income for the rest of your days.
