Retirees: 3 Reliable Canadian Dividend Stocks to Buy Now for Passive Income

Create a passive-income stream in your self-directed portfolio by investing in these three TSX dividend-growth stocks right now.

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If you’re a a senior citizen in Canada, the Old Age Security (OAS) benefit and Canada Pension Plan (CPP) can let you retire without worrying about being destitute. However, relying solely on these pension programs for your expenses in your golden years is not enough. With the uncertainty in the economy today, creating more income streams to enjoy your life’s golden years comfortably is essential.

If you have savings set aside, putting your money to work in the stock market can help you do that. Dividend investing is an exceptional method to create a passive-income stream that can boost your overall retirement income. Identifying and investing in high-quality dividend stocks is crucial to create a reliable passive-income stream in your self-directed portfolio.

Today, we will look at three TSX dividend stocks you can consider for this purpose.

Canadian Apartment Properties REIT

Canadian Apartment Properties REIT (TSX:CAR.UN) is an $8.35 billion market capitalization real estate investment trust (REIT) that you can consider for reliable dividend income. Among REITs, CAPREIT makes for a compelling investment for passive income. The trust owns residential properties throughout Canada. It’s diversified across everything from apartment buildings to manufactured home communities.

Besides owning defensive assets that generate reliable cash flows, CAPREIT has proven it can keep growing its revenue. The last decade has seen the trust increase its sales by 144%. As of this writing, it trades for $49.28 per share, paying its shareholders a 2.94% dividend yield.


Nutrien (TSX:NTR) is a $54.84 billion market capitalization giant in the global fertilizer industry. The world’s largest potash producer and third-largest nitrogen fertilizer producer has over 2,000 retail locations in North America, South America, and Australia.

Formed after a merger just a few years ago, Nutrien stock has increased its shareholder dividends for the last five years to become a Canadian Dividend Aristocrat.

Being a key provider of fertilizers makes it a dominating presence in the global agriculture industry. Since its inception, it has increased its payouts by around 33%, with no plans of slowing down. As of this writing, Nutrien stock trades for $105.27 per share, paying its shareholders at a 2.70% dividend yield.


Emera (TSX:EMA) is a $14.83 billion market capitalization multinational energy holding company. Headquartered in Halifax, this utility stock boasts a reputation for being a reliable dividend-growth stock.

Utility stocks are typically defensive assets, and Emera has created a portfolio of several utility companies diversified across multiple jurisdictions. Since it provides an essential service, it generates steady cash flows it can use to fund growing payouts comfortably.

Having introduced dividend hikes for 16 straight years, it is another Canadian Dividend Aristocrat. As of this writing, Nutrien stock trades for $54.90 per share, paying its shareholders a juicy 5.03% dividend yield. It can be another excellent asset to consider for passive income in your retirement portfolio.

Foolish takeaway

When investing to create a passive-income stream for retirement, identifying stocks that grow their shareholder dividends is an excellent strategy to keep pace with inflation. If a dividend stocks keeps increasing its payouts regularly, it is also a sign of a high-quality company. These dividend-growth companies can continue growing dividends, because they can earn strong cash flows.

To this end, CAPREIT stock, Nutrien stock, and Emera stock can be excellent investments to consider adding to your retirement income portfolio.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Emera and Nutrien. The Motley Fool has a disclosure policy.

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