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Want to Retire Rich? 3 Must-Have Stocks to Buy Now

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Written by Christopher Liew, CFA at The Motley Fool Canada

Many investors have discovered that you can retire from dividends and enjoy peace of mind. The key is to start investing as early as you can to build retirement wealth over the long term.

The must-own stocks to buy now aren’t necessarily the famous bank or energy stocks. Manulife Financial (TSX:MFC), North West Company (TSX:NWC), and Sienna Senior Living (TSX:SIA) are mature companies in good financial shape, with rock-steady dividends.

Dividend Aristocrat

Manulife Financial no longer flies under the radar because of its Dividend Aristocrat status. The iconic insurance firm has increased its quarterly dividend annually for eight consecutive years. At $25.53 per share (+10.38% year to date), the dividend offer is 5.72%.

Let’s assume the yield remains constant and you accumulate 2,000 shares ($51,060) over time. The investment will grow to $119,692.34 in 15 years, given the quarterly compound frequency (dividend reinvestment). The final balance in 2038 will generate $1,711 in passive income every quarter.

In the second quarter (Q2) of 2023, the $46.54 billion insurer and financial services provider reported core earnings of $1.63 billion, a 7.3% year-over-year increase. Notably, net income reached $1.02 billion compared to $2.11 billion net loss in Q2 2022. Investors are happy that Manulife has returned to profitability.

Its president and chief executive officer (CEO) Roy Gori said, “We are pleased to report strong top-line performance during the second quarter, including double-digit year-over-year growth in new business metrics from our global insurance business.” He noted the strong rebound in Asia and 26% business growth.

Captured markets

NWC in the consumer staples sector is a no-brainer choice in 2023. The $1.65 billion company declared a quarterly dividend increase of 2.6% following the impressive financial results in Q2 fiscal 2023. In the three months that ended July 31, 2023, consolidated sales and net earnings increased 6.8% and 17.5% to $618.1 million and $38 million versus Q2 fiscal 2022.

Its president and CEO Dan McConnell said, “We continue to take a balanced approach to managing cost inflation pressures while focusing on finding cost efficiencies and productivity gains within our business. I am optimistic about the progress we are making on our operational excellence priorities and the growth potential of our business.”

NWC is a retailer of food and everyday products and services. Its captured markets are the rural communities and urban neighborhoods in Canada, Alaska, the South Pacific, and the Caribbean. At $34.65 per share (-0.44% year to date), the dividend yield is 5.03%.

Demand is returning

Sienna Senior Living provides senior living and long-term-care (LTC) services in Canada. The $806.28 million company is also a generous dividend payer. At $11.05 per share, you can partake in the healthcare sector’s 8.29% dividend. Current investors enjoy a market-beating return of 7.07% year to date.

Demand is returning due to the improving operating environment. In the first half of 2023, net operating income (NOI) rose 13.35% year over year to $75.2 million, while the average occupancy rate climbed to 87.3%. Management expects resident move-outs to stabilize in the second half of 2023 and LTC facilities to reach full occupancy levels.

Retire rich

Retiring rich is the dream of most people. Invest in Manulife Financial, NWC, and Sienna Senior Living to improve your chances of living comfortably in retirement.

The post Want to Retire Rich? 3 Must-Have Stocks to Buy Now appeared first on The Motley Fool Canada.

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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends North West. The Motley Fool has a disclosure policy.

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