2 Reliable Dividend Stocks to Earn $191/Month in Passive Income

Take a closer look at these two reliable dividend stocks if you’re looking for a way to generate passive income.

| More on:
Payday ringed on a calendar

Image source: Getty Images

After a strong start to the year, the TSX is going through another downturn. At writing, the S&P/TSX Composite Index is down by 4.49% from its January 17th levels, and the volatility does not seem like it will go away anytime soon.

Fears of another Omicron variant suspected to be resistant to the vaccine are spooking investors. The market is going through alarming volatility just a few weeks into another year of trading.

Dividend investing is one of the few dependable ways to continue generating passive income through your portfolio. However, not all dividend-paying stocks can provide you with reliable returns. Making the right stock picks for your investment portfolio can help you create a passive-income stream that can supplement your active income and help your financial situation.

Today, I will discuss two reliable dividend stocks that you could invest in to generate a significant amount in monthly passive income.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is a $108.19 billion market capitalization financial institution headquartered in Toronto and one of the Big Six Canadian banks. If you are looking for reliable dividend stocks, Scotiabank stock could make an excellent pick for you to consider. The Canadian bank has been paying its investors their shareholder dividends each year since 1833 without missing a beat.

The financial sector might not provide the most exciting wealth growth through capital gains, but assets like Scotiabank stock are dependable for dividend-seeking investors. At writing, Scotiabank stock is trading for $88.99 per share, and it boasts a 4.49% dividend yield. Investing $30,000 in Scotiabank stock could provide you with $1,347 per year through shareholder dividends alone, translating to $112.25 per month.

Sun Life Financial

Sun Life Financial (TSX:SLF)(NYSE:SLF) is a $40.86 billion market capitalization financial services company headquartered in Toronto. Primarily an insurance company, it has a significant presence in the investment management industry, boasting over $1.3 trillion in assets under management.

Sun Life stock offers more growth than Scotiabank stock, posting strong growth in the last five years. It is also a dependable dividend stock that could provide you with wealth growth through capital gains and shareholder dividends.

At writing, Sun Life Financial stock is trading for $69.74 per share, and it boasts a 3.15% dividend yield. Investing $30,000 in Sun Life Financial stock could provide you with $945 per year through shareholder dividends, translating to $78.75 per month.

Foolish takeaway

Dividends are never a guarantee, so it is crucial to pick stocks of companies with long track records for reliably paying investors their shareholder dividends for your dividend income portfolio.

If you have enough investment capital set aside, and you can invest $30,000 in Scotiabank stock and Sun Life Financial stock each, you could earn $191 per month through shareholder dividends alone. But remember that it is wise to diversify your capital across several high-quality dividend stocks to generate safer returns.

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 recommends BANK OF NOVA SCOTIA.

More on Dividend Stocks

Family relationship with bond and care
Dividend Stocks

TFSA Investors: 3 Cheap Canadian Stocks for Retirees

These three Canadian stocks are super cheap for retirees looking for a great buy that will last the test of…

Read more »

calculate and analyze stock
Dividend Stocks

CPP Disability Benefits: Here’s How Much You Could Get

Not everybody can get CPP disability benefits. If you want some passive income, consider investing in Royal Bank of Canada…

Read more »

growing plant shoots on stacked coins
Dividend Stocks

Boosting Your Monthly Income: TSX Stocks That Deliver

Dividend investing can boost regular or active incomes, especially select TSX stocks that pay monthly dividends.

Read more »

Canadian Dollars
Dividend Stocks

How to Earn $2,005 in Passive Income With No Start-Up Costs

Passive income doesn't need to be difficult work. In fact, by definition, it shouldn't be! Here's an easy way to…

Read more »

Dividend Stocks

TFSA Passive Income: How to Earn $4,800 Per Year Without the CRA Taking a Cut

A good strategy to generate tax-free income while reducing portfolio risk.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

Ready to Invest With $5,000? 3 Stocks for December 2023

These top stocks are some of the most obvious choices out there for a reason. Pick them up if you're…

Read more »

Dividend Stocks

Should You Buy TC Energy for Passive Income?

TC Energy offers an attractive yield and a growing dividend. Is TRP stock now oversold?

Read more »

A plant grows from coins.
Dividend Stocks

2 TSX Dividend Stocks With Lucrative Yields in December 2023

BCE is one of the lucrative TSX dividend stocks generating strong cash flows, thus resulting in a steadily rising dividend.

Read more »