Creating more than one revenue stream is crucial to sound financial planning. The economy today has made it clear that you need to add more income-generating sources to enjoy financial freedom and security. Canadian investors have the opportunity to invest in a wealth of Canadian dividend stocks to create another revenue stream.
Of course, not all dividend stocks are ideal assets for income-seeking investors. It is important to create a diversified portfolio of various income-generating assets that collectively average decent returns. You need to add reliable dividend stocks with a reputation for regularly paying their shareholders’ dividends.
Today, I will discuss two blue-chip Canadian dividend stocks you could consider adding to your investment portfolio for this purpose.
BCE
BCE (TSX:BCE)(NYSE:BCE) is a $57.59 billion market capitalization giant in the Canadian telecom industry. The company has captured the majority share of the largely consolidated telecom industry in the country. Telecom businesses offer an essential service to customers, generating stable and safe cash flows. BCE stock is also a Canadian Dividend Aristocrat with a 13-year dividend-growth streak.
BCE stock trades for $63.37 per share at writing, and it boasts a juicy 5.81% dividend yield. Investing a hypothetical $10,000 in BCE stock could provide you with $581 per year through shareholder dividends alone. Investing in its shares at current levels could help you generate a significant amount per year by letting your money do the work for you.
Enbridge
Enbridge (TSX:ENB)(NYSE:ENB) is a $110.01 billion market capitalization pipeline company headquartered in Calgary. Enbridge owns and operates an extensive network of energy transportation assets. It is responsible for transporting a substantial portion of all the hydrocarbons consumed in Canada and the U.S., making it critical to the region’s economy.
Its strong financial performance is evidenced by its 26-year dividend-growth streak. The Canadian Dividend Aristocrat has delivered dividend hikes through several recessionary periods and looks well positioned to power through the current downturn. Enbridge stock also has underlying businesses like natural gas utility services and power production, giving it more business verticals to generate revenues.
Enbridge stock trades for $54.37 per share at writing, and it boasts a juicy 6.33% dividend yield. Investing a hypothetical $10,000 in Enbridge stock could provide you with $633 per year through shareholder dividends alone. Investing in its shares while its price is down on the TSX could help you lock in the high-yielding returns.
Foolish takeaway
Investing a hypothetical $10,000 in BCE stock and Enbridge stock each could help you earn $1,241 per year through shareholder dividends alone. However, it is important to remember never to allocate too much of your capital to a narrow portfolio of assets, no matter how reliable they may seem.
Ideally, you should diversify your capital allocation across several income-generating assets to add a degree of protection to your self-directed portfolio. If you are creating a passive-income stream using dividend stocks, BCE stock and Enbridge stock could be ideal investments to have as strong foundations for it.
