Buy These 3 Aristocrats for an Inflation-Resistant Passive-Income Portfolio

Invest in these three TSX stocks to secure dividend income protected by inflation-resistant businesses.

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While there are several ways to create passive-income streams, stock market investing provides Canadians with an excellent method to secure additional revenue.

Specifically, dividend investing is an excellent strategy to make your money earn more money for you. Dividend stocks are those publicly traded companies that offer their investors a portion of profits through cash payments on quarterly or monthly schedules.

It means you can grow your wealth through capital gains that increase the value of your holdings over time. Besides the capital gains, you can line your account balance with additional cash through the distributions.

Today, I will discuss three TSX stocks that can provide you with reliable dividends that can grow the value of your capital to keep pace with and even beat inflation.

Royal Bank of Canada

Royal Bank of Canada (TSX:RY) is a $186.35 billion market cap Canadian bank. Besides being the largest of the Big Six Canadian banks, it is also the biggest stock on the TSX by market capitalization.

The diversified financial services company has operations in Canada, the U.S., and several other countries, offering personal and commercial banking, wealth management, insurance, corporate banking, and capital markets services.

While any of the Big Six are strong picks, RY stock is the largest among the Canadian banks. It has immense financial resources, a resilient business, and plenty of expansion opportunities that allow it to continue delivering solid growth. As of this writing, it trades for $131.80 per share, paying its investors quarterly dividends at a juicy 4.19% dividend yield.


Telus (TSX:T) is another industry-leading TSX dividend stock. The $34.63 billion market capitalization stock is one of the three largest telecom stocks in Canada. Headquartered in Edmonton, it has around 30% of the market share in Canada.

Telus has a solid and highly defensive business, making it an excellent stock for investors to consider owning in all market environments, especially in inflationary conditions.

The company generates significant cash flow through its mobile and internet communications subscriptions.

Even when consumers cut discretionary spending during inflation, they cannot cut their internet and mobile services. The essential nature of its services gives Telus a great defensive appeal. As of this writing, it trades for $23.67 per share, paying its shareholders at a juicy 6.36% dividend yield.

Sun Life Financial

Sun Life Financial (TSX:SLF) is another excellent stock you can consider adding to your holdings during inflationary environments. The $42.12 billion market cap company headquartered in Toronto is a financial services company primarily known for its life insurance business.

It also has a significant presence in the investment management industry, with over $1.3 trillion in assets under management across several countries worldwide.

Its wealth management business has been performing well recently, generating higher fee-related earnings and growth within the Asian market segment.

Its solid performance in the September quarter saw its assets under management grow by 6%, increasing its earnings by 15% year over year. As of this writing, it trades for $72.08 per share, paying its investors at a juicy 4.33% dividend yield.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Royal Bank of Canada made the list!

Foolish takeaway

If you let your savings sit idle under a mattress in the long run, its value will actually decrease by sitting idle over the years due to inflation.

By parking your money in high-quality assets like blue-chip stocks, you can ensure your capital grows in value to keep pace with inflation. The money you keep invested in high-quality dividend stocks like these three can grow in value much faster than it might in a high-interest savings account.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

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