The 5 Best TSX Dividend Stocks to Own for a Lifetime of Passive Income

Investors can generate regular passive income regardless of where the market is headed. Fortunately, several Canadian companies are known for their solid dividend payouts and track record of growth, even in a difficult operating environment.

For investors looking for worry-free passive income, I’ve shortlisted five stocks that have been paying regular dividends for at least 25 years. Additionally, these Canadian companies have solid earnings and cash flows, meaning they could continue to grow shareholder returns through solid dividend payments.

Canadian utilities

Canadian utilities (TSX:CU) has paid and increased its dividend for 50 years. Its solid dividend payout and growth history make it a must-have passive income stock in any market conditions. The low-risk business, growing interest rate base, and sustained payouts suggest Canadian Utilities is well-positioned to keep growing its dividend.

Canadian Utilities’ regulated and contracted assets generate predictable cash flows that comfortably cover its payouts. At the same time, it offers a well-protected dividend yield of 4.4%.


Top Canadian bank stocks have a solid track record of paying dividends. Among the banking giants Scotiabank (TSX:BNS)(NYSE:BNS) has been paying a dividend since 1833. Additionally, its dividend has grown at a 6% annual rate over the past decade. Its solid dividend-paying history and ability to consistently grow its earnings (growing at a compound annual growth rate (CAGR) of 5% since 2011) make it a solid passive income stock.

Scotiabank’s exposure to high-growth banking markets, diversified revenue base, rising interest rate environment and operational leverage will drive its earnings and dividend payments. High-quality assets and a solid balance sheet also bode well for growth. One can earn a lucrative 5.1% dividend yield by investing in Scotiabank stock.

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Bank of Montreal

Bank of Montreal (TSX:BMO)(NYSE:BMO) is another reliable stock for steady passive income. It has been paying a dividend for 193 years — the longest track record of paying dividends among Canadian companies. Additionally, Bank of Montreal’s dividend has grown at a CAGR of 4% over the past decade.

The Bank of Montreal’s diversified revenue streams, ability to direct loans and deposits, and rising interest rates support earnings growth. In addition, the solid asset base and improved efficiencies will boost profits and dividend payouts. Bank of Montreal stock offers a 4.2% dividend yield, which is a safe bet.


fortis (TSX:FTS)(NYSE:FTS) has been paying and increasing its dividend for 48 years. Its interest-regulated assets generate predictable cash flows that drive its dividend payments. Its solid capital program, growing interest base (with expected CAGR growth of 6%), and increasing renewable power generation capacity bode well for future dividend growth.

Fortis sees 6% annual dividend growth through 2025. Additionally, since almost all of its earnings come from regulated assets, its payouts are well protected. Fortis offers a dividend yield of 3.5%.


Enbridge (TSX:ENB)(NYSE:ENB) has increased its dividend at a CAGR of 10 for the past 27 years. In addition, it has paid a dividend for 67 years. Its diverse cash flows, quality renewable and conventional energy assets, secured billion-dollar projects, solid backlog and inflation-protected earnings bode well for future growth.

Enbridge stock offers a dividend yield of more than 6%. The targeted payout ratio of 60-70% of distributable cash flows is sustainable in the long term.

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