There are many investing strategies to consider when buying stocks for the long haul. However, whether you want to focus on finding Canadian growth stocks, value stocks, or dividend stocks, it’s always paramount to find the highest-quality companies.
While these stocks may be more expensive than their peers, the premium you pay to own the stock is almost always worth it. This is because these companies are constantly finding ways to grow shareholder value.
And when it comes to earning passive income, while stocks with a high yield are often most sought after by investors, companies that offer consistent dividend growth could actually offer higher potential for gains, especially over the long run.
So, if you’re looking for top Canadian stocks to buy now that can boost your passive income, here are five Dividend Aristocrats that are excellent long-term investments.
A top Canadian REIT
Many Canadian REITs are some of the best stocks to buy for passive income due to the fact that real estate is typically defensive and an industry where stocks generate plenty of passive income.
But while there are many REITs to choose from, one of the best Canadian stocks you can buy is Granite REIT (TSX:GRT.UN).
Granite is a rapidly growing industrial REIT that offers both growth potential and attractive passive income.
Not only does the stock offer a yield of roughly 4.1% today, but it’s also increased its distribution for 12 straight years.
Furthermore, industrial REITs have had a tonne of momentum over the last few years as demand for warehouse space and other industrial real estate continues to climb.
A low-risk utility stock
Another excellent Canadian stock to buy for passive income is Emera (TSX:EMA) and its 5.4% dividend yield. Utility stocks like Emera aren’t the most exciting stocks to buy, but they offer a tonne of advantages for long-term investors.
The fact that they are so defensive means that they can help shore up your portfolio and protect your capital over the long haul, especially in uncertain economic environments like we’re seeing today.
In addition, much of Emera’s revenue and earnings growth is highly predictable, which is one of the reasons why it’s such a high-quality dividend-growth stock, as well as why it’s such a reliable investment.
One of the best Canadian stocks to buy for passive income
Brookfield Infrastructure (TSX:BIP.UN) is another top Canadian stock to buy to boost your passive income for many of the same reasons as Emera.
The stock owns several essential and defensive infrastructure assets all over the world, including a utility segment.
This allows Brookfield to consistently generate tonnes of cash flow, which it uses to fund the dividend as well as invest in future growth.
Today the stock offers a yield of more than 4.6% and aims to grow its distribution by 5-9% annually.
A top Dividend Aristocrat with more than 25 years of consistent dividend increases
One of the most popular dividend stocks in Canada, and for good reason, is Enbridge (TSX:ENB), the massive energy infrastructure stock.
Enbridge has a dividend-growth streak of 27 years, and its stock currently offers a yield of more than 7.3%. Therefore, it’s certainly one of the best Canadian dividend stocks in Canada.
The energy sector is essential to the economy, and Enbridge is essential to the energy sector. So, the stock is highly defensive and is consistently generating billions in cash flow, allowing it to keep the dividend safe and continue to increase the payouts to investors each year.
An impressive Canadian growth stock that generates growing passive income
Lastly is goeasy (TSX:GSY), an impressive financial stock that’s known mostly as a growth stock. As goeasy continues to become more profitable, though, it’s also quickly becoming one of the best dividend stocks in Canada to buy and hold long term.
Today, it offers a yield of roughly 2.9%, and its dividend-growth streak is at eight years. Furthermore, in just the last five years, the dividend has increased from just $0.90 in 2018 to $3.84 today — an increase of roughly 327%.
Therefore, while the stock trades undervalued, it’s one of the best dividend stocks in Canada to buy for both passive income and long-term growth potential.