When it comes to building a passive-income stream, Canadians are not limited in their choices. The TSX is loaded with high-quality dividend stocks to choose from. Whether you’re looking for a high yield, dependable payout, or even market-beating growth potential, there’s at least one dividend-paying company for you.
Choosing which dividend stocks to invest in
When it comes to researching dividend stocks, there’s more to review than just the current yield. You’ll also want to understand the company’s commitment to its dividend — specifically, how long it has been paying a dividend. Additionally, it’s worth understanding if there have been any increases to the dividend in recent years.
Aside from the dividend, there may be additional benefits to owning the stock. Market-beating growth potential could be a possibility through share price appreciation. On the flip side, low-risk defensive dividend-paying companies can potentially help reduce volatility in an investment portfolio.
I’ve reviewed three dividend stocks that are all currently yielding above 4%. If you’re looking to build a long-term passive-income stream, these three companies are an excellent place to start.
TSX stock #1: Sun Life
The insurance industry is far from the fast-growing around, but it sure is a dependable one. The need for insurance is not one that I’d expect to vanish anytime soon. With that, owning a global leader like
Sun Life (TSX: SLF) could be a wise choice for long-term passive-income investors.
At a market cap of nearly $40 billion, Sun Life is a Canadian leader that also boasts an impressive international presence. The company offers a wide range of insurance and wealth management services to its customers across the globe.
The company’s dividend is yielding close to 4.5% at today’s stock price.
It’s not the highest yield you can find on the TSX right now. But when you factor in added dependability that the stock can provide a portfolio, it ranks as a solid buy for passive-income investors.
TSX stock #2: Bank of Nova Scotia
Sticking with the financial space, I’ve included a major Canadian bank. And at a yield currently above 6.5%, it’s also the highest yielding amongst the Big Five today.
Bank of Nova Scotia (TSX: BNS) has a dividend that not many companies on the TSX can match. It’s not only the yield that’s impressive, though. The bank has been paying a dividend to its shareholders for close to 200 consecutive years.
Passive-income investors that are looking for a high yield that they can count on should have this bank on their watch list.
TSX stock #3: Brookfield Renewable Partners
Lastly, I’ve included a dividend stock for growth investors. This renewable energy company is no stranger to delivering market-beating returns. And with shares trading at a massively opportunistic discount today, the yield has jumped to more than 4%.
Even with shares down more than 30% from all-time highs, Brookfield Renewable Partners (TSX: BEP.UN) is still up a market-crushing 80% over the past five years. And that’s not even including dividends, either.
Growth investors that are just dipping their toes into the dividend game might want to consider starting with this high-yielding energy stock.
