As retirees seek to build a stable and secure income from their investments, it’s crucial to focus on stocks that offer both capital preservation and reliable income. For 2025, here are a couple of stocks on the Toronto Stock Exchange (TSX) that seem to be retiree-friendly, providing attractive dividend yields and long-term growth potential. They offer solid returns with reasonable valuations that make them appealing to income-seeking investors who don’t need access to their funds for some time.
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Safe, sustainable income for retirees
Retirees typically seek investments that provide safe, predictable income while protecting their capital. Stocks that offer high dividends can provide that steady income stream, but they also need to be sustainable. The key here is finding companies with strong fundamentals and a commitment to growing their dividends over time.
For those who don’t need to tap into their investments for at least three to five years, stocks can be an excellent way to achieve growth and income. Though markets can be volatile, these stocks are poised for long-term success, making them a good fit for retirees looking for a balance between risk and reward.
TD Bank
One of the most reliable dividend-paying stocks in Canada is Toronto-Dominion Bank (TSX:TD), and it is a choice for retirees in 2025. This prominent North American bank has a long history of offering stable and growing dividend payments, making it a cornerstone for income-focused portfolios.
Currently, TD Bank trades at a 13% discount from its historical valuation, presenting a unique opportunity for value-conscious investors. At $77.78 per share, the stock provides an attractive dividend yield of around 5.4%. This translates to approximately $540 in annual income for every $10,000 invested.
Despite some near-term challenges, including slower growth expectations in the United States, TD’s domestic business remains strong. The recent 2.9% dividend increase signals the bank’s continued commitment to rewarding shareholders. For retirees seeking both capital preservation and income, TD Bank is a top contender to consider for 2025 and beyond.
Granite REIT
Another stock retirees should consider is Granite REIT (TSX:GRT.UN), which owns a diversified portfolio of income-producing industrial properties. With the rise of e-commerce, Granite is poised for continued stable growth, making it an attractive option for income-focused investors.
The stock has experienced a general sell-off since 2022 due to rising interest rates, which offers an attractive valuation in the stock. At $70.56 per unit, it trades at a 15% discount compared to its long-term average, providing an excellent entry point. Analysts believe the stock could be undervalued by as much as 20%, offering significant upside potential over the next few years.
Granite REIT has also proven its dedication to its unitholders by raising its monthly cash distribution by 3.0% last month. With a yield of 4.8%, it provides competitive income for retirees, especially when compared to the current one-year Guaranteed Investment Certificate (GIC) rate of around 4%. Additionally, its monthly distribution schedule could be preferred by retirees who like more frequent income streams.
Granite REIT units are a perfect fit for a Tax-Free Savings Account (TFSA), allowing retirees to enjoy tax-free monthly income. With its growth potential, strong income, and discount valuation, Granite REIT could be a good addition to a diversified retiree-friendly portfolio.
The Foolish investor takeaway
For retirees in 2025, these TSX-listed stocks — Toronto-Dominion Bank and Granite REIT — offer a compelling mix of reliable income, growth potential, and good valuations. With a focus on dividend sustainability and capital preservation, these stocks are well-positioned to provide the financial security retirees seek in today’s market.
