Investors planning to build a portfolio that would help them get a solid passive income per month could consider buying top-quality dividend stocks listed on the TSX Index. While several TSX stocks have been paying dividends for a long period, I am focusing on companies that have resilient cash flows. Further, these companies could continue to bolster their shareholders’ returns uninterruptedly.
Furthermore, these Dividend Aristocrats are trading under $100.
Enbridge
Enbridge (TSX: ENB)(NYSE: ENB) should be a part of your passive-income portfolio. Besides paying and increasing its dividends for a very long period, Enbridge stock offers a stellar yield of over 6.8%. The energy infrastructure company is paying dividends for 66 consecutive years. Furthermore, its annual dividends have grown by a CAGR of 10% for 26 years in a row.
Investors should note that Enbridge owns more than 40 diverse income sources that reduce risk and support its cash flows. Furthermore, contractual arrangements and strength in its core business are likely to drive its distributable cash flows and dividends in the coming years.
Enbridge’s $16 billion diversified secured capital program, recovery in its mainline volumes, rate escalation, new customer additions, expense management, and utility-like business model suggest that the company could continue to generate resilient cash flows in the future years, which will drive its dividends at a decent pace.
Pembina Pipeline
Investors can rely on Pembina Pipeline (TSX: PPL)(NYSE: PBA) for a growing passive-income stream. The company owns a highly diversified portfolio of contracted assets that generate resilient cash flows and drive its dividend payments. Notably, the company is paying dividends since 1997 and has paid nearly $9.5 billion. Also, it has increased its dividends by about 5% annually in the last 10 years.
The steady improvement in the economy, recovery in volumes, and higher prices are likely to boost Pembina’s prospects and drive its financials. Furthermore, strong backlogs, new growth projects, secured counterparties, and expense management suggest that Pembina’s payouts are safe and sustainable in the long run.
I expect Pembina Pipeline’s valuation multiple to expand further. Currently, Pembina is trading cheaper than its peers and is offering good value. Moreover, Pembina Pipeline is offering a high yield of about 6.5%.
NorthWest Healthcare
NorthWest Healthcare (TSX:NWH.UN) is another top income stock to generate reliable passive income. It owns a low-risk and diversified portfolio of healthcare real estate assets and generates solid cash flows that support its payouts. Like Enbridge and Pembina, NorthWest Healthcare offers a high yield of over 6%, which is very safe.
NorthWest Healthcare’s high occupancy rate, government-backed tenants, inflation-indexed rents, and a long lease expiry term suggest that the company could continue to bolster its shareholders’ returns through regular monthly dividend payments.
Furthermore, its focus on deleveraging its balance sheet, strong fee income, growing scale, and strategic acquisitions are likely to accelerate its growth rate. Also, its expansion in the high-growth markets and robust development and M&A pipeline could drive stellar growth in its cash flows.
Bottom line
The payouts of these companies are safe and sustainable in the long run. Meanwhile, on average, these companies offer a very high yield of 6.5%, implying a $10,000 investment in each of these stocks could get you a dividend income of about $1,950 per year.
