Retirement comes with a significant shift in funding priorities. Gone are the times of chasing dangerous progress shares or hyper-volatile crypto trades. Most retirees need reliability, earnings, and an opportunity to sleep at evening with out fretting in regards to the subsequent market crash. That’s the place stable dividend payers shine, and some stand out for a novel mixture of stability, earnings, and progress potential. Right this moment, let’s have a look at three names which are nearly tailored for Canadian retirees: Fairfax Monetary Holdings (TSX:FFH), Granite REIT (TSX:GRT.UN), and iShares S&P/TSX 60 Index ETF (TSX:XIU).
Fairfax
Let’s begin with the heavy hitter. Fairfax Monetary has lengthy been thought-about Canada’s model of Berkshire Hathaway, and up to date earnings counsel that comparability nonetheless holds. For the second quarter of 2025, Fairfax reported web earnings of US$1.44 billion, or $61.61 per diluted share. That’s up considerably from the $915 million reported a 12 months earlier. The surge got here from big positive factors on fairness investments, together with $800 million in web positive factors on frequent shares, plus one other $126 million in working earnings from its non-insurance companies.
Nevertheless it’s not nearly inventory positive factors. Fairfax’s property and casualty operations delivered an underwriting revenue of $426.9 million, and its e book worth per share climbed 10.8% since year-end, now sitting at a whopping $1,158.47. For retirees, the attraction right here lies in additional than simply the underlying enterprise power. Fairfax pays a wholesome dividend of $15 per share at writing, and its low payout ratio of seven.6% leaves room for future hikes. For those who’re searching for a blue-chip holding that’s diversified throughout insurance coverage, investments, and international markets, Fairfax matches the invoice.
Granite
Switching gears, Granite actual property funding belief (REIT) affords a really completely different sort of retirement-friendly asset: dependable month-to-month earnings backed by industrial actual property. Granite’s portfolio contains logistics, warehousing, and lightweight industrial properties in Canada, the U.S., and Europe. Regardless of the challenges confronted by REITs in a higher-rate atmosphere, Granite continues to indicate power.
Within the first quarter of 2025, Granite’s web working earnings rose 9.8% 12 months over 12 months to $125.7 million, with a same-property NOI improve of 4.7%. Funds from operations got here in at $91 million, or $1.46 per unit, up from $1.30 the 12 months earlier than. Much more compelling, the adjusted funds from operations (AFFO) payout ratio fell to only 60%, giving Granite a cushty buffer to keep up its month-to-month distribution of $0.2833 per unit, or about $3.40 yearly. That works out to a yield of roughly 4.6% at in the present day’s value close to $74.75.
XIU
Lastly, let’s speak about XIU, the iShares S&P/TSX 60 Index exchange-traded fund (ETF). Whereas not a single firm, it’s a top-tier decide for retirees who need broad publicity with out the headache of managing particular person shares. XIU tracks 60 of Canada’s largest firms, and it does so with a rock-bottom administration payment of simply 0.18%.
Yr up to now, the ETF has posted a ten.14% return, and over the previous 12 months, it’s returned greater than 24%. That’s spectacular for an index fund. XIU at the moment yields about 2.8%, with distributions paid quarterly. The important thing profit for retirees is the simplicity. You get diversification throughout sectors, regular earnings, and progress potential, all wrapped into one ETF.
It’s not going to double in a single day, and that’s sort of the purpose. XIU allows you to take part within the Canadian economic system’s largest names with out worrying about quarterly earnings calls or shock dividend cuts. And with over $16.8 billion in web property, it’s one of the vital liquid and trusted ETFs on the TSX.
Backside line
Put all three of those collectively, and also you’ve acquired a rock-solid earnings technique. Fairfax provides you progress with a rising dividend, Granite affords constant month-to-month earnings from actual property, and XIU gives low-cost diversification and market publicity. It’s a trio that balances one another effectively, and helps retirees sleep simply understanding their cash is working for them.
