Become a Dividend Mogul Millionaire: 3 Big Passive Income Stocks Yielding Up to 4.9%

This trio of large-cap stocks, including Bank of Nova Scotia (USA) (NYSE:BNS), can provide the peace your portfolio needs.

Increasing yield

Image source: Getty Images

Hi there, Fools. I’m back to call your attention to three large cap stocks for your watch-list — or, as I like to call them, my top “forever income” assets. As a refresher, I do this because companies with a market cap of more than $10 billion can stabilize your portfolio during periods of high volatility; and provide steady and healthy dividends year after year.

If you’re retired (or nearing retirement) and are nervous about income, living off large-cap dividends can help ease your stress.

Let’s get to it.

Right on track

Leading off our list is railroad giant Canadian National Railway (TSX:CNR)(NYSE:CNI), which currently sports a market cap of $88 billion.

CN’s massive rail network (20,000 route miles of track spanning Canada and mid-America), high barriers of entry, and diversified cargo (raw materials, intermediate goods, and finished goods) make it a particularly solid play for conservative investors.

In the most recent quarter, diluted EPS increased 8% as revenue jumped 11% to $3.54 billion.

“Despite a prolonged period of historic cold temperatures in key segments of our network, CN railroaders delivered record first-quarter carload volumes, adding $350M of top-line growth, while improving year-over-year car velocity,” said CEO JJ Ruest.

CN shares are up 21% so far in 2019 and currently offer a dividend yield of 1.6%.

Bankable choice

With a market cap of $85 billion, financial services gorilla Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is our next forever asset.

Scotiabank’s long-term returns and dividends continue to be supported by massive scale, a highly regulated Canadian regulatory environment, and a volatility-softening revenue stream.

In the most recent quarter, revenue improved 10.5% on strength in its personal, commercial, and global banking segments. Management also announced intentions to buy back up to 24 million in common shares.

“We have made good progress towards strengthening our businesses and offering a superior customer experience,” said CEO Brian Porter. “Looking ahead, we remain focused on delivering against our differentiated strategy and achieving consistent long-term growth.”

Scotia shares are up 3.5% in 2019 and offer a healthy yield of 4.9%.

Wasted opportunity

Rounding out our list is waste management leader Waste Connections (TSX:WCN)(NYSE:WCN), which currently boasts a market cap of $33 billion.

Waste Connections’ economies of scale (280 solid waste collection operations, 113 transfer stations, and 56 municipal landfills), highly fragmented operating environment, and focus on exclusive markets should continue to underpin strong long-term returns.

In the most recent quarter, revenue improved 8.8%, adjusted income grew 10.7%, and adjusted cash flow increased 12% to $246.3 million.

“Our strong financial profile and free cash flow generation provide us the flexibility to fund continuing outsized acquisition activity while increasing the return of capital to shareholders,” said President Worthing Jackman.

Waste Connections shares are up 25% so far in 2019 and offer a yield of 0.7%.

The bottom line

There you have it, Fools: three forever assets worth considering.

As always, they aren’t formal recommendations. Instead, see them as a starting point for further research. Even the largest companies can suffer setbacks, so plenty of your own due diligence is still required.

Fool on.

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.

Brian Pacampara owns no position in any of the companies mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway. CN and Bank of Nova Scotia are recommendations of Stock Advisor Canada.

More on Dividend Stocks

stock research, analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

TSX dividend stocks such as Enbridge, TD Bank, and Telus, can help you earn $500 in monthly dividend payments.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Powerhouses: Canadian Stocks to Fuel Your Portfolio

These two top Canadian dividend aristocrats are some of the top stocks on the TSX to buy now and hold…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

A worker gives a business presentation.
Dividend Stocks

1 Stock I’m Buying Hand Over Fist in July Despite the Market’s Pessimism

This top dividend stock is going through a rough patch, but don't let that count out all the growth we've…

Read more »

person on phone leaning against outside wall with scenic view at airbnb rental property
Dividend Stocks

2 TSX Stocks Poised to Have a Big Summer

Restaurant Brands International (TSX:QSR) stock and another darling that could be too cheap to ignore this summer.

Read more »

HIGH VOLTAGE ELECRICITY TOWERS
Dividend Stocks

Forget Fortis Stock: Buy This Magnificent Utilities Stock Instead

Looking for high dividends and returns? Then I'm sorry, but Fortis (TSX:FTS) stock probably isn't for you.

Read more »

Increasing yield
Dividend Stocks

2 High-Yield (But Slightly Risky) Stocks to Keep Your Eye on

Have these top TSX dividend stocks finally bottomed?

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks I’d Buy if They Fall a Bit

Any near-term decline in these two top Canadian dividend stocks will make them look even more attractive.

Read more »