Is it Too Late to Buy These 3 Brilliant Passive Income Stocks?         

TD Bank stock is just one of three stocks that are well positioned to continue to provide passive income for shareholders.

| More on:
clock time

Image source: Getty Images

Well, the stock market is heading higher again, up 7.8% in the last year and 1.8% year to date. While this is obviously welcome news, it may have some of us wondering if we’ve missed out. But it’s never too late to buy quality passive income stocks.

Don’t worry about market timing, and try to keep your focus on the long term.

Enbridge: A 7.84% passive income stock

The first passive income stock that I’d like us to consider is Enbridge Inc. (TSX:ENB). Enbridge is one of North America’s leading energy infrastructure companies. The company’s diversification and North American footprint position it well for future growth and stability. For example, Enbridge has infrastructure in four different businesses: liquids, natural gas, gas utilities and storage, and renewable energy.

It is this portfolio of assets that continues to drive Enbridge’s strong cash flows and dividend growth, making it a top passive income stock to own today. When it comes to Enbridge stock, it is actually very likely one of the best times to buy. Enbridge is currently yielding 7.84%. It has 29 consecutive years of dividend increases under its belt, and expected continued dividend growth.

Enbridge’s cash flows are resilient, predictable, and safe, all of which make it a top passive income stock to buy today.


As far as dependable passive income stocks go, Fortis Inc. (TSX:FTS) is one of our best bets. Currently trading just over $52, with a dividend yield of 4.53%, Fortis stock is as dependable as they get. In fact, the company has a 50-year track record of increasing dividends. It’s a record that’s unmatched and one that we can expect to continue.

You see, Fortis is a leading North American utility company, with its essential services supplying the power we need to live and work. It’s clearly a highly defensive business whose dividend is backed by this defensive business as well as a regulated revenue profile.

Looking ahead, Fortis’ dividend is expected to grow between 4% and 6% annually through to 2028. Management has the utmost confidence in this target due to the predictable and defensive nature of its revenue and cash flows.

TD Bank

Toronto-Dominion Bank (TSX:TD) is another company that’s backed by a strong history, a diversified business, and a pretty reliable and resilient business model. But beyond this, TD Bank is also backed by its financial strength and leading banking brand.

TD Bank stock is currently yielding a very generous 5%, a function of its stock price decline as well as continued dividend increases over the years. In fact, since 2019, TD Bank has increased its dividend by 38%, or at a compound annual growth rate (CAGR) of 6.6%. In TD Bank’s latest quarter, the third quarter of fiscal 2023, the bank reported solid revenue growth of 12%, but adjusted net income fell 2.2% to $3.7 billion. This translated to a 10% decline in reported EPS and a 5% decline in adjusted EPS.

These results help to explain TD Bank’s stock price performance in the last year. As you can see from TD Bank’s stock price graph below, it has fallen 25% from its 2022 highs. While this is not good for current shareholders, it does present an opportunity for patient, long-term passive income investors.

Because TD Bank has proven itself to be resilient, it has survived and thrived in many difficult environments. Today, the bank is faced with another one. Though investors who buy the stock now for passive income will receive a 5% dividend yield.

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 Karen Thomas has a position in TD Bank and Enbridge. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Dividend Stocks

Got $5,000? Buy and Hold These 3 Value Stocks for Years

Given their healthy growth prospects and attractive valuations, these three stocks offer attractive buying opportunities.

Read more »

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

Should You Take CPP at 65 or 70? Here’s What Research Says

If you take CPP at age 70, you may supplement your income with dividend stocks like Brookfield Asset Management (TSX:BAM)…

Read more »

Increasing yield
Dividend Stocks

Boost Your Passive Income With These 3 High-Yielding Dividend Stocks

These three high-yielding dividend stocks could boost your passive income.

Read more »

calculate and analyze stock
Dividend Stocks

TFSA Investors: 2 TSX Dividend Stocks to Buy Today

These two dividend stocks have increased their dividends annually for more than two decades.

Read more »

data analyze research
Dividend Stocks

1 Magnificent TSX Dividend Stock With 30% Upside to Buy and Hold Forever

Shares of Brookfield Renewable Partners are down 50% from all-time highs, increasing its dividend yield to more than 6%.

Read more »

question marks written reminders tickets
Dividend Stocks

Is It Too Late to Buy Costco Stock Now?

Costco stock (NASDAQ:COST) always looks like a good buy. But after a 10% drop after earnings, is it still the…

Read more »

Dividend Stocks

3 Canadian Stocks With Insanely Fast-Growing Dividends

Stocks like Canadian Natural Resources are growing their dividends incredibly fast, making them a lucrative investment for income investors.

Read more »

analyze data
Dividend Stocks

Turn This CRA Benefit Into $4,050.76 in 2024

When it comes to creating funds for your future and your kids, there's a way to create massive passive income…

Read more »