Picking the right Canadian dividend stocks early on can help establish a viable passive income stream for any long-term portfolio. Thankfully, the market gives us plenty of great dividend-paying options to consider, even during volatile times.
Here’s a look at several Canadian dividend stocks to add to your portfolio.
Stable income and solid growth are part of this stock’s appeal
Defensive stocks, such as utilities should be the cornerstone of every well-diversified portfolio. One utility that also pays a solid dividend to consider buying right now is Fortis (TSX:FTS).
Fortis is one of the largest utilities in North America, with operations across the U.S., Canada, and the Caribbean. Utilities like Fortis offer a lucrative business model that generates a stable revenue stream which is backed by regulated long-term contracts.
Part of that revenue is used for growth initiatives, while the rest is then passed on in the form of a juicy quarterly dividend. As of the time of writing, the yield on that dividend works out to 3.94%.
And that’s not even the best part. The reliable nature of Fortis’ revenue stream allows the company to continue hiking that dividend on an annual basis. Currently, the company has provided 49 consecutive increases and is on track for its 50th increase later this year.
Fortis also plans to continue that practice, targeting 4-6% increases over each of the next five years.
In other words, Fortis is one of the Canadian dividend stocks that can provide long-term passive income for any portfolio.
How about a rental property without a mortgage?
Owning a rental property remains one of the best-known ways to establish a passive income stream. Unfortunately, a rental property comes with a laundry list of must-haves, which thanks to rising interest rates, includes a very hefty downpayment.
Fortunately, this is where RioCan Real Estate (TSX:REI.UN) can provide an alternative, less risky way to accomplish that passive income dream.
RioCan boasts a portfolio of over 200 properties, and that mix is shifting from commercial retail to mixed-use residential properties. Those residential units are located in towers above several floors of retail, situated along high-traffic corridors in major metro areas.
And like a tenant paying rent, RioCan pays out distributions on a monthly cadence. The yield currently works out to 5.34%, making it a better-paying option for investors looking for Canadian dividend stocks.
It also means that investors with just $30,000 (which is considerably less than a rental property downpayment) can look to earn a monthly income of approximately $130.
Buy and forget is what this Canadian dividend stock is all about
Apart from utility stocks, Canada’s telecoms represent another viable long-term option for attaining passive income goals. BCE (TSX:BCE), in particular, boasts nationwide coverage, a growing subscriber base, and over a century of dividend payments without fail.
BCE also benefits from its massive media segment, which blankets the country and provides an alternative, yet complementary revenue stream.
In terms of income, BCE pays out a handsome yield of 6.27%, which makes the telecom one of the better-paying Canadian dividend stocks on the market.
It’s also worth noting that the defensive appeal of BCE’s core subscription services has only grown in recent years. This is due to more people working and studying in a remote or hybrid capacity since the pandemic began.
Throw in the insatiable demand for mobile data, and you have a Canadian dividend stock that is also one of the most defensive picks on the market.
Final thoughts
Investors looking to build out a passive income stream will not be disappointed with the three stocks noted above. All offer a good mix of growth and income-earning potential, while also offering some defensive appeal.
While no stock is without risk, in my opinion, one or all of the above would be great additions to any well-diversified portfolio.
