How to Build a Retirement Income of $2,000 Per Month

Here’s the number you need to know: $468,000. That’s roughly how much you’d need to invest in Brookfield Renewable Partners (TSX:BEP.UN) to generate $2,000 per month entirely from dividends.

However, the smarter play is building a diversified dividend portfolio with BEP as a cornerstone holding. Let me show you exactly how that works.

This TSX dividend stock belongs in your retirement portfolio

Brookfield Renewable is one of the world’s largest pure-play renewable power companies. It owns and operates hydroelectric, wind, solar, and battery storage assets across North America, South America, Europe, and Asia. The Canadian dividend stock also holds a stake in Westinghouse Electric, giving it exposure to the booming nuclear energy sector.

The dividend track record for the TSX stock is impressive. According to Brookfield Renewable’s January 30, 2026, earnings call, the company has delivered 15 consecutive years of annual distribution growth of at least 5%.

The most recent increase pushed the annual distribution to US$1.57 per unit. At today’s price of US$30.63, that works out to a dividend yield of about 5.1%.

The business also generated funds from operations (FFO) of US$2.01 per unit in 2025, up 10% from the prior year. FFO is the key profitability metric for partnerships like BEP; think of it as the cash the business generates.

A growing FFO provides BEP with a platform to sustain and raise the dividend over time.

The math behind $2,000 per month

Let’s keep this simple.

• To earn $2,000 per month from dividends, you need $24,000 per year in dividend income.
• At US$1.57 per unit annually, you need to purchase 15,287 BEP shares, which would be worth roughly US$468,000 today.
• While this number might seem out of reach, Canadian investors should let the power of compounding work its magic.

For example, an investment of $17,000 in BEP stock at the start of 2001 would be worth close to $470,000 today, after adjusting for dividend reinvestments.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYBrookfield Renewable Partners$30.6315,287$0.3925$6,000Quarterly

BEP’s management has guided to 12% to 15% long-term total returns, supported by a record $8.8 billion in capital deployed in 2025, more than nine gigawatts of new contracts signed, and a development pipeline accelerating across solar, wind, hydro, nuclear, and battery storage.

The Foolish takeaway

Instead of putting $468,000 into BEP alone, consider spreading that investment across eight to 10 high-quality dividend stocks with similar yield profiles.

For example, pairing BEP with other Canadian dividend stalwarts, such as major banks, pipelines, or utility companies, gives you exposure to different sectors while keeping your overall yield in the 4% to 6% range.

That means you can still hit $24,000 per year in dividend income, but with far less concentration risk. If one holding cuts its dividend or hits a rough patch, something that happens even to great companies, the rest of your portfolio keeps the income flowing.

Brookfield Renewable Partners remains one of the best dividend growth stocks in Canada. Its combination of a 5%-plus yield, 15 years of consecutive distribution growth, and a compelling long-term growth runway in renewable energy makes it a cornerstone holding for any retirement income portfolio.

That said, no single stock should carry your entire retirement. BEP is a top buy, but building a diversified dividend portfolio around it is the real path to a reliable $2,000 per month in retirement income. Start there, stay consistent, and let compounding do the rest.

The post How to Build a Retirement Income of $2,000 Per Month appeared first on The Motley Fool Canada.

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More reading

• Canadian Renewable Energy Stocks: Hype or Historic Opportunity?
• 2 Canadian Stocks That Could Win From More Power Demand
• 2 Canadian Dividend Giants I’d Buy With Rates on Hold
• 2 Top TSX Stocks to Buy Today With Long-Term Growth in Mind
• Invest $50,000 in This Dividend Stock for $2,580 in Passive Income

Fool contributor Aditya Raghunath has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.