Building a Retirement Portfolio? Here Are 3 Top Picks

These three top picks provide everything long-term investors require in a retirement portfolio: growth, income, and value.

Building a well-balanced retirement portfolio isn’t an easy task. Indeed, finding value in today’s market isn’t an easy task. Growth stocks have continued to outperform, stretching valuations of other sectors as well.

That said, there’s always value to be had in the market. And, in my opinion, these three stocks are some of the best Canada has to offer.

Let’s dive in.

Top pick: Algonquin Power

As far as utilities plays go, Algonquin Power (TSX:AQN)(NYSE:AQN) remains one of my top picks. Indeed, the cash flow stability Algonquin provides as a result of the company’s regulated utilities business is impressive. Additionally, the growth the company’s renewable power business provides is impressive.

The cherry on top is Algonquin’s dividend yield of 4.5%. Indeed, this is one of the few stocks providing defensiveness, stability, growth, and income, and at a reasonable valuation. Accordingly, Algonquin’s ability to be a cornerstone holding for retirement accounts is noteworthy.

This is a stock I’ve got on my watch list right now, and one I think can go a lot higher from here.

Top pick: TD Bank

In the banking sector, Toronto-Dominion Bank (TSX:TD)(NYSE:TD) has proven itself as one of the best picks of the litter.

Indeed, large Canadian banks mostly look and feel the same. Each provide slight differences investors may gravitate towards. In the case of TD, this bank’s focus on incorporating innovative technologies and efficiency-enhancing processes is something I really like.

TD has grown its U.S. business to be massive, relative to its Canadian peers. Accordingly, for investors looking for more leverage to the higher-growth U.S. market, TD is the way to play the Canadian banking space.

Additionally, the TD Ameritrade platform has absolutely taken off in recent years, as trading volumes have soared. TD is continually looking to build out its moat, providing investors with excellent growth potential over the long term. This company’s 3.6% dividend yield juices investors’ long-term total returns and provides an additional margin of safety with this top-notch Canadian stock.

Top pick: Barrick Gold

Retirement portfolios ought to be defensive in nature. In this regard, few sectors are as defensive as gold and gold miners.

Among the Canadian gold miners I have my eye on right now is Barrick Gold (TSX:ABX)(NYSE:GOLD). Indeed, Barrick’s status as one of the largest gold miners in the world is meaningful to me. This is a company with vast gold reserves, providing excellent leverage to the upside in gold prices over time. For those looking for a defensive tilt to their portfolio, Barrick is one of the best-quality means of generating this defensiveness.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has no position in any stocks mentioned in this article.

More on Dividend Stocks

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would prioritize a $7,000 TFSA contribution for growth and income.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Technology
Dividend Stocks

TFSA Investors: 3 Dividend Stocks I’d Buy and Hold Forever

These TSX dividend stocks are likely to help TFSA investors earn steady and growing passive income for decades.

Read more »

four people hold happy emoji masks
Dividend Stocks

Love Dividend Growth? Check Out These 2 Income-Boosting Stocks

National Bank of Canada (TSX:NA) and another Canadian dividend-growth stock are looking like a bargain going into December 2024.

Read more »

An investor uses a tablet
Dividend Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

Enbridge stock may seem like the best of the best in terms of dividends, but honestly this one is far…

Read more »