These Canadian Dividend Stocks Make Your Money Work Harder

Want to make your money work harder for you? Buying these dividend stocks today is the first step to achieving that goal.

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Finding that perfect mix of income-producing investments early on can help kickstart your portfolio into an income-generating machine on autopilot. Fortunately, the market gives us plenty of options to make your money work harder for you, through a series of stellar Canadian dividend stocks.

Here’s a look at some of those income producers to buy now and make your money work harder.

Big Bank = Big Income

I would be remiss if I didn’t mention at least one of Canada’s big banks as an investment to make your money work harder. And Bank of Nova Scotia (TSX:BNS) is the big bank your portfolio needs.

Canada’s big banks are almost always great dividend stocks, but Scotiabank takes it to the next level. Not only has the bank paid out dividends without fail for nearly two centuries, but today the yield on that dividend is the best among its peers.

As of the time of writing, that yield is a mouth-watering 6.46%. This means that investors with $30,000 to allocate to Scotiabank can expect to generate an income of just over $1,900.

And that’s not even the best part. Scotiabank continues to provide annual upticks to that dividend, which means investors can expect that income to grow.

Buy now, hold for a decade

Apart from Canada’s big banks, Canada’s telecoms represent another segment of the market that pays handsomely to make your money work harder.

Specifically, Telus (TSX:T) is a telecom that should be on the radar of investors everywhere. In addition to offering a core suite of subscription-based offerings, Telus also boasts a growing digital solutions arm that encompasses both Telus Health and Telus Agriculture and Consumer Goods.

Prospective investors should keep in mind that telecoms are very defensive investments, even during times of market volatility. In other words, buying Telus will not only generate a handsome income (more on that in a moment), but will also help diversify your portfolio.

Speaking of income, Telus has provided annual or better bumps to its dividend going back over a decade. As of the time of writing, Telus’ dividend works out to an appetizing 5.98%.

Generate a juicy monthly income

TransAlta Renewables (TSX:RNW) is another stock that can make your money work harder to consider. TransAlta operates a portfolio of renewable energy facilities located across the U.S, Canada, and Australia.

Those facilities adhere to the same lucrative business model that fossil-fuel-burning utilities follow. Specifically, those facilities are bound by long-term regulated contracts, which generate a stable and recurring source of revenue for TransAlta.

And because we’re talking about renewable energy facilities, TransAlta isn’t burdened by the same massive transitional costs that traditional utilities are dealing with. In other words, the defensive appeal of the stock is huge.

As an income producer, TransAlta really shines. The company offers a juicy monthly payout, which currently works out to an insane 7.10% yield.

This means that investors with $30,000 to invest in TransAlta can expect to generate a monthly income of over $175. And like the other stocks above, investors not ready to draw on that income can reinvest it allowing it to grow until needed.

Make your money work harder

No investment is without risk. That’s why it’s important to diversify your portfolio to offset that risk and make your money work harder. That’s why, in my opinion, the stocks mentioned above should be part of a larger, well-diversified portfolio.

Buy them, hold them, and watch your income grow.

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 Bank of Nova Scotia. The Motley Fool recommends Bank of Nova Scotia and TELUS. The Motley Fool has a disclosure policy.

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