How to Build Your Own Pension Using Canadian Dividend Stocks

Work pensions are becoming harder to come by these days. Arguably, it’s no longer the expectation when one applies for a new job. Of course, Registered Retirement Savings Plan (RRSP) matches may very well be the “new,” cheaper way for companies to add a bit of sweetener to an employee’s retirement path. And while the RRSP match is a must (it’s pretty much free money from your work), if you can get it, the main takeaway is that it’s on investors to make their own income streams or workplace pensions.

When it comes to your RRSP or Tax-Free Savings Account (TFSA), there are a ton of different securities you can pick up to produce an income stream that can help add to your retirement. If you’re still young, it might make sense to go for growth (think appreciation over higher-yielding names), but if you’re about ready to shift gears from growth to value and yield, it might be time to give some of the market’s cherished dividend payers (and growers) a closer look.

With the broad market’s rotation from growth to value (tech has taken a hit while almost everything else has looked quite resilient), perhaps it’s time to construct your own pension-like vehicle to supplement your income, whether you’re ready to retire or enter some sort of semi-retirement or sabbatical.

At this juncture, I’m a big fan of the higher-yielding real estate investment trusts (REITs), the steady utility plays (some also have newfound share price momentum riding behind them), the telecoms, and, of course, the pipeline and energy producers. SmartCentres REIT (TSX:SRU.UN) stands out as a great option for yield and value, while Telus (TSX:T) is also a strong contender for a passive-income portfolio.

SmartCentres REIT

In my humble opinion, SmartCentres REIT looks like one of the best yield deals in the market. The yield stands at just shy of 7%, and it’s very well-supported by strong fundamentals. Whether we’re talking about the high occupancy rate or the potential to expand upon funds from operations (FFOs) via expansion into mixed-use properties, I’d stick by the retail REIT, even if others might have doubts about the durability of retail properties in the face of downturns.

After a 5.5% plunge from 52-week highs, I’m starting to think it’s last call for that 7% yield. And while shares might be choppier than most other REITs, I think there’s also upside if rates were to continue on the downtrend. For now, though, we’re facing a rate pause, but as oil prices rocket and food inflation remains overheated, I wouldn’t be surprised if a hike is in the cards once the pause is over. That might rock the REITs, but for long-term investors, that might be an opportunity to get more yield for less!

Telus

Do you need a massive income boost? Telus is one of the go-to names for many, given its yield is above the 9% level. Of course, such a towering yield isn’t without its risks. Though I suspect management is committed to keeping it alive, there’s no doubting that the commitment is hefty, and it makes the job of turning the business around that much harder.

Either way, the rise of satellite connectivity and a capital expenditures cliff for the industry might be relief enough to allow investors to have their cake and eat it, too. In short, don’t depend on Telus’s yield uplift too much, and you won’t be disappointed if a dividend cut (some think there’s a growing chance of this) does happen. In terms of value and turnaround potential, though, I like the name for those who know what they’re getting into.

The post How to Build Your Own Pension Using Canadian Dividend Stocks appeared first on The Motley Fool Canada.

Should you invest $1,000 in SmartCentres Real Estate Investment Trust right now?

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 9 percentage points.*

They revealed what they believe are 10 TSX Stocks for 2026… and SmartCentres Real Estate Investment Trust made the list – but there are 9 other stocks you may be overlooking.

Don’t miss out on our Top 10 TSX Stocks for 2026, available when you join our mailing list!

Get the 10 stocks instantly #start_btn5 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn5 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn5 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn5 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of February 17th, 2026

More reading

• Should You Buy Telus Stock at $18?
• Passive Income: How Much Do You Need to Invest to Make $1,000 Per Month?
• Retiring Soon or Already There? These 3 REITs Can Boost Your Monthly Income
• The Average TFSA Balance for Canadians at 55
• 5 Dividend Stocks Everyone Should Own

Fool contributor Joey Frenette has positions in SmartCentres Real Estate Investment Trust. The Motley Fool recommends SmartCentres Real Estate Investment Trust and TELUS. The Motley Fool has a disclosure policy.