Passive Income: 3 Top Dividend Stocks to Buy for Less Than $100

With just $100, Canadian passive-income investors can own this entire basket of three high-yielding dividend stocks.

| More on:
A close up image of Canadian $20 Dollar bills

Image source: Getty Images

It may not seem like it but now’s an excellent time to think about building a passive-income stream through dividend investing. The recent volatility in the stock market has sent yields soaring for many Canadian dividend stocks.

As prices gradually rise, yields will eventually come back down to reality. But for the time being, if you’re looking to earn some extra income on the side, investing in dividend stocks is a great way to do just that.

I’ve put together a basket of three dividend-paying companies that are all currently yielding upwards of 4.5%. All three picks are also trading below 52-week highs.

Canadian investors can own this entire basket for less than $100 right now. But based on the market’s performance over the past month, these discounted prices might not last for much longer. 

Algonquin Power

This trustworthy utility stock would be one of my top picks if I were building a passive-income portfolio. 

At today’s stock price, Algonquin Power’s (TSX:AQN)(NYSE:AQN) dividend yields just over 5%. But what makes this utility stock stand out from other dividend-paying companies is its defensiveness.

Utility companies have the luxury of benefiting from predictable earnings. Demand for utilities tends to not be overly impacted by changes in the health of the economy. As a result, Algonquin Power experiences far less volatility in its stock price than most companies on the TSX.

If you’re looking for a dependable dividend stock with a top yield, you can’t go wrong with Algonquin Power.


Speaking of unexciting but dependable industries, Manulife (TSX:MFC)(NYSE:MFC) is another high-yielding dividend stock passive-income investors can count on.

At a market cap nearing $50 billion, Manulife is Canada’s largest insurance provider. The company also boasts a growing international presence, which is just one reason why I wouldn’t expect this Dividend Aristocrat to stop growing its dividend anytime soon.

At a dividend yield of just above 5.5%, this is the highest-yielding of the three companies in this basket. It’s also a yield that you’d be hard-pressed to match on the TSX, especially considering Manulife is a Dividend Aristocrat.

For passive-income investors focusing primarily on earning the highest yield possible, this is as dependable of a 5.5% payout as you’ll find today.


To round out this diversified basket of dividend stocks, I’ve included the Canadian telecommunications leader, Telus (TSX:T)(NYSE:TU). 

Once again, there’s nothing all that exciting about the industry that Telus operates in. But, when it comes to passive-income investing, boring is certainly not a bad thing. 

Telus’s 4.5% dividend yield ranks it as the lowest in this basket. It does, however, have the potential to drive market-beating returns in the coming years.

Excluding dividends, shares of Telus are just about on par with the S&P/TSX Composite Index’s return over the past five years. But when you factor in the growth potential that will undoubtedly come from the expansion of 5G technology, Telus definitely has the potential to be a market-beating stock over the next decade.

Passive-income investors willing to sacrifice some yield today for long-term growth potential should have Telus at the top of their watch lists.

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 Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends TELUS CORPORATION.

More on Dividend Stocks

A close up image of Canadian $20 Dollar bills
Dividend Stocks

How Much Cash Do You Need to Quit Work and Live Off Dividend Income

Toronto-Dominion Bank (TSX:TD) pays a lot of dividend income. Can you live off of it in retirement?

Read more »

An analyst uses a computer and dashboard for data business analysis and Data Management System with KPI and metrics connected to the database for technology finance, operations, sales, marketing, and artificial intelligence.
Dividend Stocks

Invest $10,000 in This Dividend Stock for $1,398.40 in Passive Income 

This dividend stock offers a whopping 11.9% dividend yield right now, with returns that should fly high for this cyclical…

Read more »

Person holds banknotes of Canadian dollars
Dividend Stocks

This 6.1 Percent Dividend Stock Is My Pick for Instant Income

Here’s what makes Transcontinental one of my top dividend stock picks right now for instant income.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

For a Shot at $5,000/Year in Passive Income, Buy 1,000 Shares of This TSX Stock

Do you know you can build passive income with TSX stocks? A $22,000 investment can give you a shot at…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

A new Canoe EIT Income Fund (TSX:EIT.UN) investment could earn almost 9% yield annually, and the monthly dividend stock has…

Read more »

RRSP (Registered Retirement Savings Plan) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

RRSP Wealth: 2 Great Dividend Stocks to Own for Total Returns

Dividend stocks like Fortis Inc (TSX:FTS) can be great additions to a well-diversified portfolio.

Read more »

edit Sale sign, value, discount
Dividend Stocks

3 Cheap Stocks to Add to Your TFSA Before They Get Expensive

The stock market has some lucrative TFSA stocks trading at multi-year lows. Now is a good time to buy these…

Read more »

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $10,000

Here’s how to build a diversified portfolio with dividend stocks that, as a group, pay out in every month of…

Read more »