Seeking $500 in Dividend Income? Buy These 3 TSX Stocks Now

Make $500 in quarterly passive income with these top TSX dividend stocks.

| More on:
Man holding magnifying glass over a document

Image source: Getty Images.

Investors seeking consistent income will find value in dividend stocks. However, one must exercise caution when investing in dividend-paying stocks. The reason is that dividend payouts are not guaranteed. 

So, if you want to make regular income from your investments, spread your money across multiple stocks to reduce risk. Moreover, a smart way is to focus on shares of fundamentally strong firms that regularly pay and increase their distributions. Also, consider investing in shares of corporations that consistently grow their earnings, as this can lead to higher dividends in the future.

Based on these parametres, Fortis (TSX:FTS), Enbridge (TSX:ENB), and Toronto-Dominion Bank (TSX:TD) are excellent choices for investors looking for dependable passive income. With this background, let’s find out why these Canadian stocks are great income stocks. Additionally, let’s calculate how many shares you need to own to earn $500 in quarterly dividend income.


Fortis is an excellent choice for investors looking to build a stable income portfolio. One key factor is the company’s low-risk and regulated electric utility business, which ensures steady cash flow generation and safeguards its payouts. Moreover, Fortis has a strong track record of consistent dividend payments and growth, instilling confidence among investors. Additionally, the company offers visibility regarding future payouts, making it a top stock to earn worry-free passive income.

Fortis has consistently increased its dividend for 50 years and offers a solid yield of over 4.2%. The company, through its multi-billion-dollar capital projects, plans to expand its rate base, which will drive payouts. Fortis anticipates growing its rate base by a compound annual growth rate (CAGR) of 6.3% through 2028, which sets the stage for a 4-6% annual dividend increase during the same period.


Like Fortis, investors can rely on Enbridge. The energy infrastructure company has a resilient business model and has been paying a dividend for over 68 years. Further, the company has increased its dividend at a CAGR of 10% in the last 28 years. Moreover, its target payout ratio of 60-70% of the DCF (distributable cash flow) is sustainable in the long term. 

Enbridge could continue to increase its dividend in the coming years. Its diversified assets, long-term contracts, power-purchase agreements, and multi-billion-dollar secured projects will drive its DCF and dividend distributions. Moreover, its investments in conventional and renewable energy assets position it favourably to meet long-term energy demand. Enbridge stock currently offers a lucrative yield of 7.7%. 

Toronto-Dominion Bank

Shares of the financial services giant Toronto-Dominion Bank are a reliable investment to generate regular income. With a remarkable dividend payment track record spanning 166 years, it stands out as one of Canada’s top dividend stocks. The bank has increased its dividend at a CAGR of around 11% over the past 25 years. Moreover, it maintains a conservative payout ratio of 40-50%. 

Toronto-Dominion Bank is poised to benefit from its diversified revenue base. Further, its solid balance sheet, focus on driving operating efficiency, and strategic acquisitions will cushion its earnings and support its payouts. Currently, Toronto-Dominion Bank offers a dividend yield of 4.6%. 

How to earn $500/quarterly 

Fortis, Enbridge, and Toronto-Dominion Bank stocks are solid investments to create a resilient passive-income portfolio. Further, the table below shows that by allocating $12,200 to each of these stocks, investors can generate a quarterly passive income of over $500.

CompanyRecent PriceNumber of SharesDividendTotal PayoutFrequency
Toronto-Dominion Bank$83.85145$0.96$139.20Quarterly
Prices as of 11/15/23.

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Cheap Dividend Stocks to Boost Your Passive Income

Bank of Nova Scotia and TC Energy pay attractive dividends that should continue to grow.

Read more »

Hands holding trophy cup on sky background
Dividend Stocks

3 Dividend Yield Champions to Buy Today

Manulife Financial (TSX:MFC) and two other Dividend Yield Champions look ripe for buying this fall and winter.

Read more »

A golden egg in a nest
Dividend Stocks

RRSP Investors: 2 Dividend Stocks to Build Your Retirement Nest Egg

These industry-leading stocks can be an excellent part of your portfolio to align with your retirement plan for a sizeable…

Read more »

edit Balloon shaped as a heart
Dividend Stocks

If You Like Dividends, You Should Love These 3 Stocks

Canadian investors can consider buying high dividend TSX stocks such as Enbridge to create a passive-income stream for life.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Pensioners: 3 Cheap TSX Dividend Stocks to Buy Today for TFSA Passive Income

When dividend stocks are cheap, it is time for long-term investors to scoop up shares in their TFSAs and enjoy…

Read more »

Retirement plan
Dividend Stocks

TFSA: How to Invest for $250 in Monthly Retirement

Investors looking to establish monthly retirement income will want to invest in these two stellar stocks now.

Read more »

Dividend Stocks

Buy 92 Shares in This Stock for $1,699 in Passive Income in 2024

The market is changing, and that could mean big things for this discretionary stock as we enter the new year.

Read more »

TFSA and coins
Dividend Stocks

TFSA Investors: How to Prepare for Investing in 2024

2024 will be here before you know it, so make sure you're prepared with a TFSA, have the funds for…

Read more »