Retire early with 3 Canadian passive income stocks

Handwritten note of early retirement

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There’s no barrier to retiring early if you save early, invest in passive income stocks, and reinvest your dividends to grow your retirement savings over the long term. Here are some smart investment choices to accelerate your retirement date. nova bank scotia (TSX:BNS), pembina pipeline (TSX:PPL), and transcontinental (TSX:TCL.A).

In addition to offering high dividend yields, three Canadian stocks are Dividend Aristocrats. Major banks and pipeline operators have increased their dividends for 11 and 10 consecutive years, respectively, and industrial stocks have increased their dividends for 20 consecutive years.

Dividend payment record

BNS is, of course, a passive income provider. This $76.45 billion financial institution is Canada’s fourth largest financial institution. This Dividend Aristocrat’s dividend history dates back to 1832, making his 191-year history of payments. If you invest today ($63.43 per share), the dividend offer would be 6.57%.

Revenues for the third quarter of fiscal 2023 (Q3) were $8.09 billion, an increase of 4% compared to the third quarter of fiscal 2022. However, net income decreased 15% year-on-year to $2.21 billion, as provision for credit losses (PCL) increased 99% to $819. 1 million from a year ago. Still, CEO Scott Thomson said the results showed stability amid economic uncertainty.

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BNS recently announced the extension of its long-standing strategic agreement with merchant acquisition business Chase Payment Solutions. JP Morgan Chase. The partners provide Canadian businesses with an integrated and scalable payments experience, including payment processing and cash management services. It should also accelerate the shift to online commerce.

Visible growth runway

Pembina Pipeline operates an integrated network of hydrocarbon liquids and natural gas pipelines. Apart from its pipeline network, the $22.27 billion Energy Transportation and Midstream Services owns gas gathering and processing facilities, oil and natural gas liquids infrastructure. Related businesses are logistics services and export terminals.

Sales and net income for the first half of 2023 were $4.36 billion and $732 million, down 29% and 19% year-on-year, respectively. Nevertheless, management expects to gain new volumes and report volume growth in the second half of the year following pipeline system outages and wildfires. Pembina should also benefit from increased asset utilization and growth projects. Current stock price is $40.56.

Leader in flexible packaging

Transcontinental trades at a discount at $12.11 per share (-16.91% year-to-date), but it pays a hefty 7.48% dividend. The $1.04 billion company derives its revenue from his two core divisions: packaging and printing. Businesses are facing rough waters due to reduced production and slowing demand.

Thomas Morin, President and CEO of Transcontinental, said continued investment in commercializing sustainable packaging solutions should drive long-term growth. However, he expects the printing division’s sales volume decline and inflationary pressures to impact the printing division’s operating profit.

Still, management remains upbeat and optimistic about the business. Transcontinental expects to generate significant cash flow from operations, reduce net debt and continue to make strategic investments.

outstanding choice

Three Canadian passive income stocks are Dividend Aristocrats, but BNS is a great choice. If you have plans or goals for early retirement, you need stability. This large bank is well capitalized and there is no doubt about its dividend payments.

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