Retirees: 2 Great Canadian Dividend Stocks to Buy for Passive Income in 2024

These top TSX dividend stocks now offer yields above 7%.

| More on:
Close up shot of senior couple holding hand. Loving couple sitting together and holding hands. Focus on hands.

Image source: Getty Images.

Canadian seniors are searching for ways to squeeze more passive income out of their savings to help offset rising living costs. One popular strategy to achieve the goal is to own top TSX dividend-growth stocks inside a self-directed Tax-Free Savings Account (TFSA).

Enbridge

Enbridge (TSX:ENB) is a major player in the North American energy infrastructure industry. The company’s networks of oil and natural gas pipelines move 30% of the oil produced in the U.S. and Canada and 20% of the natural gas used in the United States. In recent years, Enbridge has focused its growth investments on other segments, including oil exports, natural gas exports, natural gas utilities, and renewable energy. For example, the company recently announced a US$14 billion deal to buy three natural gas utilities in the United States.

Enbridge stock trades below $48 at the time of writing compared to $59 at one point in 2022.

The drop looks overdone. Enbridge’s assets have performed well in 2023, and the company expects the new acquisitions and the ongoing capital program to generate revenue and cash flow growth in the next few years.

Enbridge raised the dividend by 3.1% for 2024. This is the 29th consecutive annual dividend hike. Investors who buy at the current price can get a 7.7% dividend yield.

BCE

BCE (TSX:BCE) is another top Canadian dividend stock that looks oversold and offers a great yield. The share price is down to about $51.50 at the time of writing compared to $65 earlier this year. High interest rates are driving up borrowing costs for BCE. As with Enbridge, the company has a large capital program and uses debt to finance part of the overall investments. A jump in borrowing expenses will contribute to a small drop in profits in 2023. Weak ad sales in the media business will also put some pressure on earnings.

That being said, BCE still expects to generate higher total revenue and better free cash flow in 2023 than it did last year. This should provide support for the dividend in 2024. BCE raised the payout by at least 5% in each of the past 15 years. Investors who buy BCE stock at the current price can get a 7.5% dividend yield.

The bottom line on top stocks for passive income

Ongoing volatility in the market should be expected, and further downside is possible in the next few months. That being said, Enbridge and BCE are leaders in their respective industries and pay attractive dividends that should continue to grow. If you have some cash to put to work in a TFSA focused on passive income, these stocks already look cheap and deserve to be on your radar.

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.

The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker owns shares of BCE and Enbridge.

More on Investing

A bull outlined against a field
Investing

After Earnings, I’m Bullish on These 2 TSX Stocks

Given their solid performances and healthy growth prospects, I am bullish on these two TSX stocks.

Read more »

Woman has an idea
Bank Stocks

3 No Brainer Bank Stocks to Buy Now for Less Than $1,000

Canadian bank stocks like Toronto-Dominion Bank (TSX:TD) appear quite cheap today.

Read more »

Dividend Stocks

Where Will Canadian Utilities Stock Be in 5 Years?

Canadian Utilities (TSX:CSU) is a classic example of a stock where the dividend is all you get. Can the company…

Read more »

Man holding magnifying glass over a document
Dividend Stocks

2 Stocks I’m Watching for Big Passive Income

Consider Bank of Nova Scotia (TSX:BNS) and another top passive-income play to power your dividend portfolio!

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

These top TSX stocks have increased their dividends annually for decades.

Read more »

question marks written reminders tickets
Dividend Stocks

Better Buy: Loblaw Companies or Metro Stock?

Loblaw Companies (TSX:L) stock is riding on recent momentum. Meanwhile, Metro (TSX:MRU) is executing for future earnings growth.

Read more »

bulb idea thinking
Dividend Stocks

2 Supercharged Dividend Stocks to Buy if There’s a Stock Market Sell-Off

These two top stocks offer attractive yields, have reliable operations and are dividend aristocrats, making them two of the best…

Read more »

Dividend Stocks

Got $1,000? Buy These Hot Growth Stocks Before They Take Off

These growth stocks just reported earnings that should have investors eager for more over the next year and beyond. They're…

Read more »