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TFSA Investors: 3 Safe Dividend Stocks to Build Your Portfolio Around

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Whether there’s a pandemic going on, a recession, or anything else, it’s always good to have stable income-producing stocks in your portfolio. They can generate recurring income for your Tax-Free Savings Account (TFSA) and help add stability to your portfolio. Below are three of the better dividend stocks on the TSX that you can buy today:

Rogers

Rogers Communications (TSX:RCI.B)(NYSE:RCI) is a good, stable, boring stock to hold for years. It’s a household name in Canada that’s synonymous with telecom, and the industry leader is an excellent pillar to hang on to for years and even decades. In only one of the company’s past 10 quarters has Rogers’s profit margin not come in above 10%. It’s not a company that will see much sales growth, but TFSA investors will love it for its low-beta value and steady stream of dividend income.

The company hasn’t raised its dividend payments in the past year, but at $0.50 per share, they’re still yielding a solid 3.4% per year. On a $25,000 investment, that would generate $850 in dividend income. And inside of a TFSA, those earnings would be tax-free.

Shares of Rogers are currently trading at around 15 times earnings and less than three times book value. The stock makes for a good value buy.

CN Rail

Canadian National Railway (TSX:CNR)(NYSE:CNI) offers investors a good way to bet on the success of the economy. Even if you’re not optimistic about where the economy may be headed in the next year or two, it’s hard to argue that it won’t go up over the long term. And when the economy is doing well, railway operators like CN Rail are busy, creating some strong results in the process.

The company has done well, even during the early stages of the COVID-19 pandemic. Although revenue was flat in the company’s most recent quarter, which was up until the end of March, CN was able to book more than $1 billion in profit — something that it’s done in three of the past four quarters.

Currently, CN Rail pays its shareholders a quarterly dividend of $0.575, which, on an annual basis, yields around 1.9%. A $25,000 investment here would be enough to produce $475 in dividend income every year.

Northwest Health

NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN) gives investors a way to diversify in multiple ways. A real estate investment trust (REIT) generates recurring revenue, which can provide lots of consistency from one period to the next. NorthWest is also unique in that the REIT holds a portfolio of medical office buildings and hospitals. Many REITs focus on retail sectors or residential properties. Healthcare properties should offer even more stability.

Another way the stock helps you diversify is through geography: NorthWest has assets outside Canada, including in Brazil, Europe, Australia, and New Zealand.

Although the REIT has incurred some losses in recent periods, that’s been due to non-operating items. Its operating income has been relatively consistent over the past four quarters, falling no lower than $62 million while rising no higher than $67 million.

NorthWest pays a monthly dividend of $0.06667, which yields 7% per year. Investing $25,000 at that yield would earn you $1,750 in dividend income each year.

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Fool contributor David Jagielski has no position in any of the stocks mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of and recommends Canadian National Railway. The Motley Fool recommends Canadian National Railway, NORTHWEST HEALTHCARE PPTYS REIT UNITS, and ROGERS COMMUNICATIONS INC. CL B NV.

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