A Passive-Income Triple Play: 3 Top TSX Stocks to Buy Together

These two top Canadian dividend stocks provide long-term investors with much-needed stability and passive income right now.

| More on:
Man data analyze

Image source: Getty Images

Passive-income stocks provide a great way for investors to generate extra cash flow while they stay invested. Furthermore, such stocks also aid investors with a regular payout through rocky market situations. Considering current raging inflation, a potential upcoming recession, and ongoing interest rate hikes, dividend stocks offering passive income are essential to many portfolios. 

That’s because much like bonds and other income-producing investments, such stocks can act as a nice hedge against inflation. 

With all that said, stocks like Dream Industrial REIT (TSX:DIR.UN), Fortis (TSX:FTS) and Restaurant Brands (TSX:QSR) are among the top picks for investors right now. Here’s why.

Top passive-income opportunities: Dream Industrial REIT 

This real estate giant has taken a big hit, as interest rates continue to rise. As a result, it now trades at a cheaper valuation while providing a good yield. The company provides investors with exposure to 257 assets, with a combined square footage of 46 million square feet. It also features an impressive occupancy rate of around 99%.

Interestingly, Dream Industrial REIT has multiple growth strategies it’s executing. Over the years, the brand has built a strong name across the Greater Montreal Area and Greater Toronto Area. Its plans to continue its pace of acquisitions and development in these core markets is noteworthy.

Further, towards the end of 2021, Dream Industrial REIT featured an annual rental escalation of around 2.5%. This increase pertained to the company’s Canadian leases. Delivering a rather commendable dividend yield of around 5.8%, I think this is one passive-income stock worth buying right now.


Over the previous few years, Fortis has shown a solid track record. The company posted a recent annual total divided amounting to $2.26. This is huge when compared to its 2012 total dividend distribution of $1.20. This near doubling in distributions over a decade showcases that the company grew its distributions by 6.5% over that period.

As one of the top dividend-growth stocks in the market, I like Fortis for its steady and renewed commitment to continue to raise its distributions. For nearly five decades straight, the company has done just that. Thus, in terms of investors seeking growing passive income in retirement, Fortis is a top stock to buy right now.

At the same time, Fortis’s fundamentals provide the kind of solid long-term growth investors like. The company’s earnings per share are expected to rise by 21.5% over the coming year. 

Restaurant Brands

One of the many exciting catalysts to consider with Restaurant Brands is its growing profitability. The company’s strong earnings-per-share growth of nearly 8% over the past three years is a testament to this.

While this growth rate may not be sky-high, as in the case of other growth stocks, it’s certainly enticing. And given the company’s defensive fast-food business model, it’s clear that investors can sleep easy knowing its core restaurants won’t be out of business anytime soon.

If we are headed into a recession, paradoxically, fast-food outlets could see a surge in activity. Folks still want to eat out, but on a budget. Thus, this is the kind of recession-resistant stock I like in this difficult environment.

The company’s dividend yield of 3.3% is also noteworthy. With more dividend increases likely over the long term, this is a passive-income stock I think is an excellent choice for investors looking for total return growth over the next few decades.

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 Chris MacDonald has positions in Restaurant Brands International Inc. The Motley Fool recommends DREAM INDUSTRIAL REIT, FORTIS INC, and Restaurant Brands International Inc. The Motley Fool has a disclosure policy.

More on Investing

Doctor talking to a patient in the corridor of a hospital.

TFSA: Healthcare Dividend Stocks Are Perfect for Passive Income

Top healthcare dividend stocks like Extendicare Inc. (TSX:EXE) and others can provide huge passive income in your TFSA.

Read more »

TFSA and coins
Tech Stocks

TFSA: Invest in These 2 Stocks for a Legit Chance at $1 Million

Are you interested in building a $1 million portfolio? Invest $20,000 in these two stocks!

Read more »

edit Person using calculator next to charts and graphs

The Top TSX Stock on My Watch List Right Now

Here's why Alimentation Couche-Tard (TSX:ATD) remains a top TSX stock that long-term investors seeking growth and yield will want to…

Read more »

Hourglass projecting a dollar sign as shadow

3 Stocks to Add to Your TFSA ASAP

Given their stable cash flows and solid underlying businesses, these three stocks are excellent additions to your TFSA in this…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

Better Buy: Fortis Stock vs Enbridge

Fortis stock and Enbridge are top dividend stocks on the TSX today. Which stock is better buy for safe dividend…

Read more »

Canadian Dollars
Dividend Stocks

How to Make $1,500 in Passive Income 4 Times a Year

Blue-chip TSX stocks such as Enbridge can enable investors to create game-changing wealth over the long term.

Read more »

Woman has an idea

5 Stocks You Can Confidently Invest $500 in Right Now

Consider putting your surplus cash in these stocks for stellar capital gains.

Read more »

Dividend Stocks

TFSA: How to Easily Turn $10,000 Into $500/Year of Passive Income

You don't need to be a stock market expert to turn $10,000 into a $500 of tax-free passive income. Here's…

Read more »