Passive-Income Investors: 3 Top Stocks to Buy Today

BCE stock, Enbridge stock, and TransAlta Renewables stock are ideal stock picks for passive-income-seeking investors today.

| More on:
analyze data

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The Canadian stock market provides investors plenty of opportunities to meet their short-, medium-, and long-term financial goals, no matter how different they can be. Creating a portfolio of income-generating assets to earn a steady stream of passive income is one of the most popular methods that investors use their Tax-Free Savings Accounts (TFSAs).

I will discuss three top stocks that you can buy today for this purpose and hold in your TFSA portfolio forever to earn reliable passive income.


BCE (TSX:BCE)(NYSE:BCE) is a giant in the Canadian telecom space that should be on your radar for dividend stocks. The company is the most dominant presence in Canada’s recession-proof telecom industry. It provides wireless, wireline, internet, and subscription TV services to millions of Canadians throughout the country. It also operates one of Canada’s largest media companies with several TV and radio stations under its belt.

The demand for its services skyrocketed in 2020, as the work-from-home trend became commonplace. The pandemic acted as an unexpected tailwind for several tech and telecom companies worldwide, expanding on already impressive performances in both industries. BCE stock is trading for $61.28 per share at writing, and it boasts a juicy 5.71% dividend yield that you could lock in right now.


Enbridge (TSX:ENB)(NYSE:ENB) is one of the top stocks to consider adding to your portfolio today, as the market conditions continue to favour energy sector stocks. The stock is making an excellent recovery from its pandemic-fueled lows during 2020, and there could be more upside on the way for Enbridge.

Enbridge owns and operates a network of natural gas transmission and renewable energy assets that performed well last year. The strong performance in these segments managed to partially offset the downturn in its oil pipeline service, as fuel demand plunged amid the pandemic. The economic recovery in Canada and the U.S. is strong, as both countries make more progress in vaccine rollouts. With air travel increasing in both countries, the rising demand for jet fuel and gasoline could see its oil pipeline business rebound in the coming months, making it an ideal buy today.

Enbridge stock is trading for $50.25 per share at writing, and it boasts a juicy 6.65% dividend yield.

TransAlta Renewables

It is no secret that the renewable energy sector will become the next big thing for investors seeking opportunities for substantial long-term gains. TransAlta Renewables (TSX:RNW) is an ideal stock to consider adding to your portfolio for this purpose, as clean energy demand looks ready to explode over the next decade.

TransAlta Renewables develops, acquires, owns, and operates multiple renewable energy production assets that make it an excellent stock to consider if you want exposure to the renewable energy space. The company owns an extensive portfolio that consists of seven natural gas production, 13 hydroelectric, and 23 wind power facilities alongside a gas pipeline and solar power facility.

TransAlta Renewables stock is trading for $21.06 per share at writing, and it boasts a juicy 4.46% dividend yield.

Foolish takeaway

Whether you are a retiree looking to supplement your retirement income or have different reasons for seeking passive income, using reliable income-generating assets in your TFSA can be the best way to achieve your goals.

Any income in your TFSA does not count towards your taxable income. Creating a robust portfolio of income-generating assets in your TFSA can let you earn substantial dividend income without worrying about moving to a higher tax bracket.

TransAlta Renewables stock, Enbridge stock, and BCE stock could be ideal stock picks for you to consider for this purpose.

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.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.

More on Dividend Stocks

edit Back view of hugging couple standing with real estate agent in front of house for sale
Dividend Stocks

Why Real Estate Stocks Are a No-Brainer Addition to Your Portfolio

Real estate stocks, especially REITs, offer some distinct advantages over other types of stocks, making them must-have additions to most…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

3 Top TSX Dividend Stocks to Buy for Monthly Passive Income

Top TSX stocks with monthly dividends now trade at cheap prices for investors seeking passive income.

Read more »

Canadian Dollars
Dividend Stocks

Create Free Passive Income and Turn it Into Thousands With 1 TSX Stock

If you can't afford to invest, you can certainly create passive income another way and use that to invest in…

Read more »

Payday ringed on a calendar
Dividend Stocks

Canadian Dividend Investors: 2 ETFs That Pay Monthly Income With High Yields

Dividend ETFs often pay out monthly distributions compared to dividend stocks.

Read more »

think thought consider
Dividend Stocks

2 Stocks I Own and Will Buy More of if They Fall

Stocks tend to go up in the long run. Therefore, buying a basket of diversified stocks on dips should lead…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy for Passive Income

Blue-chip dividend stocks such as Royal Bank of Canada and Manulife Financial pay investors a tasty forward yield.

Read more »

TFSA and coins
Dividend Stocks

TFSA Passive Income: 3 Solid Stocks to Earn $355 Every Month

Looking to earn steady passive income? Here are three solid TSX stocks that can help you earn a worry-free passive…

Read more »

Dividend Stocks

RRSP Investors: 2 Stocks to Buy in August for Dividends and Capital Gains

RRSP investors can still find top TSX dividend stocks trading at cheap prices today for a buy-and-hold portfolio.

Read more »