Many investors dream of having their portfolios pay for their everyday expenses. That would allow them to spend most, if not all, of the income they receive from their jobs on pleasure. One way to achieve such a portfolio is by investing in passive-income stocks (e.g., dividend stocks). By accumulating shares of strong passive-income stocks, investors could eventually build a solid portfolio that can pay for their day-to-day expenses. In this article, I’ll discuss three brilliant passive-income stocks to buy today.
This is one of the best dividend-growth stocks in Canada
When looking at dividend stocks, it’s important to consider whether the stock increases its dividend over time. This is important because your passive income will lose buying power if it cannot keep up with inflation. Fortis (TSX:FTS) is an example of a stock that has shown it’s capable of increasing its distribution.
With a dividend-growth streak of 49 years, Fortis claims the second-longest active dividend-growth streak in Canada. The company has also already announced its plans to continue raising its dividend through to 2027 at a rate of 4- 6%. Because of the steady nature of its business, I predict that Fortis will be able to continue comfortably grow its dividend for many years to come.
A stock that has paid shareholders for nearly two centuries
Although Bank of Nova Scotia (TSX:BNS) hasn’t been able to grow its dividend as consistently as Fortis, I think it’s still a great stock to hold for passive income. This company has done a great job of raising its dividend ever since the Great Recession. However, I think the value in this company lies in the fact that it’s been paying shareholders a portion of its earnings since 1833. That represents 190 years of continued dividend distributions.
Listed as one of the Big Five Canadian banks, Bank of Nova Scotia is well positioned to continue thriving as a business over the next decade. With the global economy only continuing to improve, I believe companies like Bank of Nova Scotia could see a strengthening in their financial positioning. With that said, I’m curious to see how its dividend-growth streak shapes out over the coming years, but I have no doubts that the company will continue to line shareholders’ pockets with a solid dividend.
A dividend stock with an impressive track record
Finally, passive income investors should consider buying shares of goeasy (TSX:GSY). For those that aren’t familiar, this company operates two distinct business segments. These are easyhome and easyfinancial. The former sells durable home goods and furniture on a rent-to-own basis, whereas the latter provides high-interest loans to subprime borrowers.
In 2014, goeasy offered investors a quarterly dividend of $0.085 per share. Today, goeasy’s quarterly dividend is an impressive $0.96 per share. That represents a compound annual growth rate of about 31% over the past nine years. That dividend growth helps investors stay much ahead of inflation. Not to mention, goeasy stock has gained about 144% over the past five years. This is an outstanding stock that I think more investors should take note of.