Canadian Dividend Stocks to Buy for Long-term Passive Income

The market is full of stellar Canadian dividend stocks to buy for long-term income-seekers. Here’s a look at three options to consider today.

| More on:
Handwriting text writing Are You Ready For Tomorrow question. Concept meaning Preparation to the future Motivation Stand blackboard with white words behind blurry blue paper lobs woody floor.

Image source: Getty Images

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.

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 Demetris Afxentiou has positions in Fortis. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

money cash dividends
Dividend Stocks

2 Dividend Stocks for Passive Income

Both of these dividend stocks are good sources of long-term passive income. They also currently trade at good valuations.

Read more »

Close up shot of senior couple holding hand. Loving couple sitting together and holding hands. Focus on hands.
Dividend Stocks

These 3 Canadian Dividend Stocks Are a Pensioner’s Best Friend

Are you a pensioner looking for dividend stocks to add to your portfolio? Here are three top picks!

Read more »

Dividend Stocks

3 No-Brainer Stocks to Buy With $200 Right Now

Are you looking to invest $200 in stocks right now? Here are three no-brainer stocks to invest your money in…

Read more »

Dividend Stocks

TFSA Investors: How to Earn $350/Month in Passive Income

Add 7.78%-yielding Enbridge stock and 4.5%-yielding Fortis to your TFSA for a generous passive income stream for the long term.

Read more »

A golden egg in a nest
Dividend Stocks

Passive Income: How to Earn $200 Per Month in Your TFSA Portfolio

Who doesn't want a little extra passive income? Here's one way you could earn $200/month of diversified, tax-free income!

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

2 Dividend Stocks That Are Insanely Oversold Right Now

BCE (TSX:BCE) and another battered dividend stock are ripe for buying for brave bargain hunters.

Read more »

Growing plant shoots on coins
Dividend Stocks

3 Dividend Stocks to Buy While They Are on Sale

These top TSX dividend stocks now offer great yields.

Read more »

Canadian Dollars
Dividend Stocks

Buy 734 Shares of This Top Dividend Stock for $9,574 a Year in Passive Income

Are you looking to earn regular income? Now is an opportune time to buy Dividend Aristocrats at discounts and accelerate…

Read more »