4 Passive Income Stocks for a Perfect Dividend TFSA

These four passive income stocks can create thousands in annual income, and better still will last you for decades in your TFSA.

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The perfect dividend Tax-Free Savings Account (TFSA) means finding passive income stocks that will last decades. And I do mean decades. If you’re a 20-year-old starting out investing, then a Motley Fool investor could literally make millions. But it all comes down to the right companies.

In that case, you want to find blue-chip companies that have a history of paying out dividends and increasing them on a regular basis. Then, putting them in your TFSA means you’re making tax-free income you can take out at any time!

So here, I’m going to go over four passive income stocks to create the perfect dividend TFSA.

Fortis

Fortis (TSX:FTS)(NYSE:FTS) is about to be the only company on the TSX today to be a dividend king. This means it’s been increasing its dividend for a total of 50 consecutive years. That’s something no other company can claim among passive income stocks.

For Fortis stock, right now you get that solid dividend at a yield of 3.26%. If you were to put a quarter of your TFSA toward the stock right now, that would produce annual income of $661 as of writing! That’s stable income you can look forward to for another 50 years and beyond.

CIBC

The best dividend stock of the Big Six Banks has to be Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM). Among passive income stocks it’s a winner, providing investors with $6.44 per share per year as of writing. It continues to claim that top spot year after year, and likely will in the foreseeable future thanks to its strong and growing portfolio.

Right now, investing in CIBC stock gives you a yield of 4.41%. So if you were to put yet another quarter of your TFSA contribution room toward the company, that would give you annual income of $889 as of writing. And again, it’s had a stellar history of increasing dividends again and again.

Telus

Among the telecommunications companies, I still love TELUS (TSX:T)(NYSE:TU) for its growing and focused portfolio. Instead of getting into television, it’s focused on the wireless industry where its wireline business is booming. Furthermore, it’s now in the tech sector, all of which as helped support its solid dividend.

It’s now one of the passive income stocks offering a yield of 3.87% as of writing. That would make a quarter of your TFSA contribution room create $785 in annual income. Furthermore, it could be one of the growth stocks you’ll want to have on hand in the future.

Brookfield Renewable

Finally, Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) may be down, but don’t count it out. The company continues to produce an incredible dividend despite the downturn in clean energy stocks. It’s now one of the passive income stocks proving that its eyes are on the future, and yours should be too.

Brookfield offers a substantial deal, with a dividend of 3.12% and trading at 2.22 times book value. Furthermore, its diversified portfolio of clean energy projects has set it up for decades of solid income. Investing another quarter of your TFSA would create $625 in annual income.

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 Amy Legate-Wolfe owns Brookfield Renewable Partners and CANADIAN IMPERIAL BANK OF COMMERCE. The Motley Fool recommends FORTIS INC and TELUS CORPORATION.

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