Want Easy Passive Income? Go With These 3 Canadian Dividend Aristocrats

Passive income from Dividend Aristocrats like Fortis (TSX:FTS)(NYSE:FTS) is easy.

Golden crown on a red velvet background

Image source: Getty Images

Dividend Aristocrats are my favourite type of stock. These companies have consistently increased their dividends every year for over a decade. In fact, some have been boosting dividends for multiple decades. 

This is the consistency you need to generate easy and reliable passive income for life. If that’s your target, here are the top three Dividend Aristocrats that should be on your watch list. 

Dividend Aristocrat #1

Fortis (TSX:FTS)(NYSE:FTS) is the gold standard for dividend stocks in Canada. It’s a natural monopoly with fantastic management. That means reliable cash flows for shareholders. 

Fortis is a utility company. With operations spread across North America and even the Caribbean, it’s one of the largest energy distributors in the world. Now, the company is investing to boost its already strong position.

By 2026, Fortis management expects to deploy $20 billion in new investments. This includes acquisitions and the development of new facilities in new regions. It also includes roughly $3.8 billion invested in green energy sources. 

These investments should safeguard Fortis’s position. It should also add incremental cash flow. In fact, Fortis expects these investments to help it expand dividends by 6% every year until 2026. 

Fortis has already increased its dividend for 48 years, so another five isn’t beyond the realm of possibility. That’s why this is a top-notch passive-income stock to keep an eye on. 

Dividend Aristocrat #2

BCE (TSX:BCE)(NYSE:BCE) is another excellent Dividend Aristocrat worth keeping an eye on. Canada’s largest telecommunications company has a tight grip on the market. It’s a position that allows it to extract immense profits. 

BCE’s dominance is bad news for subscribers, who pay some of the highest data rates in the world. But it’s great news for shareholders, who have enjoyed annual dividend growth for 13 years. BCE’s current dividend yield of 5.98% is also much higher than the market average. 

The company’s ongoing investments in rural broadband and 5G should cement its position as a market leader. That means shareholders can expect several more years of dividend growth. Add this Dividend Aristocrat to your passive-income basket. 

Dividend Aristocrat #3

Investing in a Dividend Aristocrat is an easy way to make passive income. But if you’re looking for an easier path, you should consider a basket of Dividend Aristocrats. iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (TSX:CDZ) is an excellent example. 

This fund holds roughly 93 stocks that have expanded dividends for five years consecutively. The largest holding is energy giant Keyera. The portfolio also includes some real estate funds, utility companies, and bank stocks. Overall, it’s a well-diversified basket of robust dividend stocks. 

The fund currently trades at a price-to-earnings ratio of 13 and offers a juicy 3.6% dividend yield. Add this to your passive-income radar.  

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 Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC and KEYERA CORP.

More on Dividend Stocks

Technology
Dividend Stocks

10 Years From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks

The TSX is lucrative to buy these magnificent dividend stocks in bulk and be proud of this decision 10 years…

Read more »

calculate and analyze stock
Dividend Stocks

4 Fabulous Dividend Stocks to Buy in July

Are you looking for long-term income? These four dividend stocks should not only provide you with value in July but…

Read more »

financial freedom sign
Dividend Stocks

5 Steps to Financial Freedom for Canadian Millennials

Follow these steps and nothing can stop Canadian millennials from achieving their early retirement dreams.

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

We’re Only Getting Older: A Top TSX Stock That Benefits From an Aging Population

For a bet on the aging population, consider this small-cap stock with growth potential.

Read more »

Growing plant shoots on coins
Dividend Stocks

Yield Today, Growth Tomorrow: 3 Stocks to Keep Building Your Wealth

For investors seeking yield today and growth tomorrow, these top Canadian dividend stocks are certainly worth considering right now.

Read more »

Payday ringed on a calendar
Dividend Stocks

This 10.72% Dividend Stock Pays Cash Every Month

This dividend stock remains a consistent, defensive dividend producer that will give up over 10% in income each and every…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA Investors: 2 Standout Domestic Stocks With 7% Yields

These top dividend-growth stocks look oversold.

Read more »

Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Despite their recent declines, the long-term growth outlook of these two top dividend stocks remains strong, which could help their…

Read more »