4 Canadian Stocks to Buy for Passive Income Forever

Don’ want to worry about your passive-income investments? Here are four Canadian dividend stocks you can safely buy and hold forever.

Canadians love dividend stocks that pay regular and reliable passive income. Fortunately, the Canadian stock market is full of high-quality dividend stocks to choose from. If you are looking for enduring life-long passive-income streams, here are four top Canadian stocks to consider for buy-and-hold investors.

Fortis: Passive-income growth for years

One of Canada’s top Dividend Aristocrats is Fortis (TSX:FTS)(NYSE:FTS). While it only earns a 3.6% dividend yield right now, it has a 48-year track record of annually increasing its dividend rate. If you want passive income that safely hedges against inflation for years ahead, Fortis stock is a great bet.

It is a North American leader in power and natural gas distribution. 99% of its assets are regulated, so investors can trust that its dividend will be funded. Fortis is investing $20 billion into long-term growth opportunities, and it expects to earn 5-6% earnings and dividend growth for the next several years.

Canadian Apartment Properties REIT

If you want to be a passive-income landlord, but can’t afford to buy a rental property, Canadian Apartment Properties REIT (TSX:CAR.UN) is a great alternative. With 67,000 multi-family suites across Canada and Europe, it the largest real estate investment trust (REIT) in Canada.

Its suites capture an average monthly rental rate of $1,167. Compared to housing ownership, that is a very attractive pricing point for many Canadians. Given the essential nature of housing and CAP REIT’s well-located properties, it captures high 98% occupancy and growing rental rates.

This passive-income stock earns a 3.2% dividend, but it has grown that annually for the past 10 years. The value of Canadian housing should only grow over time, and this passive-income stock stands to benefit.

Brookfield Renewable Partners

Renewable energy is a long-term growing trend. One of the best and largest players in this industry is Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP). It operates over 21,000 megawatts of hydro, wind, solar, battery, and distributed generation power across the globe. It has a development plan that is three times the size of its current power capacity.

This passive-income stock has grown its dividend by a 6% compounded annual rate since 2013. Going forward, it targets 5-9% annual dividend growth and 12-15% compounded total annual returns. It earns a 3.26% dividend yield today, but I expect further income upside, as it further expands its project portfolio.

Enbridge: An elevated passive-income return

If you like an elevated divided yield, Enbridge (TSX:ENB)(NYSE:ENB) is a good passive-income stock. At $57 per share, it earns a 6% dividend yield today. While Enbridge is known for its North America-wide energy pipeline network, it also has renewable power assets, regulated gas utilities, storage facilities, and export ports/facilities.

Enbridge is a way to get exposure to strong oil markets, but at much lower risk. Most of its cash flows are contracted. However, it does get the benefit of higher volumes, as energy demand rises across the globe.

Enbridge has grown its dividend by a 10% compounded annual rate for 27 years. Its dividend-growth rate is likely to slow to half that rate going forward. However, it is still an attractive way to earn inflation-beating, elevated dividend payout today.

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 Robin Brown has positions in Brookfield Renewable Partners. The Motley Fool recommends Enbridge and FORTIS INC.

More on Dividend Stocks

Dividend Stocks

I’m Betting My Future on This Magnificent Canadian Dividend Giant

This solid utility stock could have a place in any investor's portfolio whether they're looking for income or total returns.

Read more »

Canadian dollars are printed
Dividend Stocks

This 1 Stock Could Turn Your $10,000 TFSA Into a Tax-Free Goldmine

Stop worrying and just invest with this easy buy of a Canadian stock that just keeps growing.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Why I’d Load My TFSA With This 6% Dividend Giant

A high-yield TSX stock with an impressive dividend history is an ideal holding in a TFSA.

Read more »

concept of real estate evaluation
Dividend Stocks

Why the Market Should Stop Hating on This Reliable REIT

You can get a lot of dividend income with an investment in Northwest Healthcare Properties REIT (TSX:NWH.UN).

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Max Your TFSA Impact: 4 Dividend Stocks to Buy and Hold Forever

Adding these TSX dividend stocks to your TFSA can maximize your portfolio's income potential and compound your returns over time.

Read more »

man touches brain to show a good idea
Dividend Stocks

This 6% Yield Has Survived Every Market Crash Since 1995

This top TSX stock boasts a yield of over 6% and a dividend track record that has weathered every market…

Read more »

Income and growth financial chart
Dividend Stocks

This Canadian Retail Stock Yields 3.8% and Keeps Expanding

A growing dividend, rising share price, and big strategic moves make this top Canadian retail stock worth owning for the…

Read more »

Forklift in a warehouse
Dividend Stocks

It’s Possible! Build a $250,000 TFSA Using Just 2 Dividend Stocks

Want a $250,000 TFSA that pays out monthly? These two solid REITs pay monthly distributions.

Read more »