Passive Income in Canada: How to Easily Earn $10/Day

While the market remains volatile, investors can still earn steady passive income through Canadian stocks. The TSX has several top dividend stocks that continue to pay regular dividends irrespective of where the market moves.

However, investors should note that dividends are not guaranteed. Thus, one should focus on relatively less-volatile stocks to diversify portfolios. Against this backdrop, I’ll discuss three high-quality, large-cap stocks that one can rely on to easily earn steady passive income. 

Enbridge

Speaking of top passive-income stocks, investors can rely on Enbridge (TSX:ENB). The energy infrastructure company is famous for steadily increasing its dividend, regardless of market conditions. What stands out is its high yield of 6.78%, making it an attractive investment near the current levels.

Enbridge has a highly diversified cash stream that covers its payouts. Moreover, as Enbridge plays a key role in the energy supply, its assets witness a high utilization rate. Also, its continued investment in conventional and renewable energy assets positions it well to capitalize on energy demand and enhance its shareholders’ returns. 

It’s worth highlighting that most of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) has protection against inflation. Also, its contacts are backed by arrangements that reduce price and volume risk.

Enbridge increased its dividend for 28 consecutive years. Meanwhile, it remains well positioned to increase its dividend further on the back of its resilient business model. Investors can easily rely on ENB stock to generate steady passive income. 

Scotiabank

From energy, let’s move to the banking sector. It’s worth highlighting that large Canadian banks have a stellar history of regular dividend payments. Within the banking space, investors could consider adding Scotiabank (TSX:BNS). 

It has been paying a regular dividend since 1833. Moreover, its dividend increased at an average annualized growth rate of 6% from 2011 to 2022. While Scotiabank has a rich dividend payment history, its high yield of 6.11% attracts. 

Its growing earnings base supports its dividend payments. Scotiabank’s earnings have increased at a CAGR (compound annual growth rate) of 5% in the last decade. Moreover, its diversified revenue model, exposure to high-growth banking markets, solid credit performance, and operating efficiency indicate that the bank will likely grow its earnings at a decent pace and pay a higher dividend. 

Fortis

Fortis (TSX:FTS) is a must-have stock for passive-income investors. The company operates a regulated utility business that generates predictable cash flows and remains relatively immune to the volatility in the market. This utility company has raised its dividend for 49 years in a row and offers a well-protected yield of 3.97%. 

Fortis’s resilient business will add stability to your portfolio. At the same time, Fortis will likely enhance its shareholders’ value through higher dividend payments. 

The company expects its rate base to increase at a CAGR of 6% over the next five years and sees 4-6% growth in its annual dividend during the same time. Its low-risk business, healthy yield, and visibility over future payouts make it a compelling passive-income stock. 

Bottom line

These high-quality Canadian dividend stocks offer reliable income and have attractive yields, which makes them solid investments to generate steady passive income, regardless of market conditions.

The table shows that a $21,000 investment in shares of each of these companies could generate approximately $885 in passive income every quarter, or roughly $10 per day.