Get Safe and Steady Income With These 4 TSX Dividend Stocks

Want sleep-at-night passive income? Here’s a mini-portfolio of dividend stocks that can supply a steady mix of income and modest growth ahead.

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The TSX has a vast array of dividend stocks to choose from. Canadians can build a dividend portfolio from a wide mix of sectors and industries.

You can easily build a diversified dividend income stream that is steady, reliable, and balanced through market cycles. If you are looking for safe income, here’s a mini-four stock portfolio to hold for the years ahead.

A top infrastructure stock with an attractive dividend yield

Pembina Pipeline (TSX:PPL) has been a faithful dividend stock throughout the energy cycles. Even when oil prices turned negative in 2020, Pembina continued to maintain its dividend.

Now that oil remains steadily above US$75 per barrel, Pembina has been generating a lot of excess cash. It has recently recommenced its dividend growth trajectory with two increases in the past two years.

Pembina has one of the best balance sheets in the energy infrastructure industry. The company is looking at various growth opportunities (like pipeline acquisitions and LNG developments). It yields an attractive 5.44% today.

A railroad with almost three decades of dividends

Canadian National Railway (TSX:CNR) stock may not pay the highest dividend yield (around 2%). Yet, it gets major points for longevity and dividend growth. It has been paying a dividend since 1996. Its annual dividend is up 44 times.

Its dividend growth has been so exceptional because its earnings per share (EPS) growth has been impressive. For a boring, blue-chip business, CNR has grown EPS by an 11.5% compounded annual growth rate (CAGR) over the past 20 years.

CNR has a highly efficient network that provides a natural competitive hedge. The company has refocused on velocity, efficiency, and network maximization. It recently reaffirmed its target to grow EPS by 10%-plus in 2024.

A solid financial stock for growing dividends

National Bank of Canada (TSX:NA) pays one of the lowest dividend yields (3.7%) amongst its big bank peer stocks. Yet, it has delivered some of the best total returns in the industry. Over the past 5 and 10 years, this stock has delivered, respectively, 119% and 277% total returns.  

National Bank consistently outperforms its peers. The company has a strong risk management system and market-leading return on equity.

National Bank has grown its dividend per share by a 10% CAGR over the past 5 years and an 8.8% CAGR over the past 10. For a very well-run bank that should continue to outperform, this is a great income and growth stock.

A top real estate stock

Granite Real Estate Investment Trust (TSX:GRT.UN) is a great dividend stock to get exposure to the industrial real estate market. The best part is you don’t need to put up millions of dollars. When you buy a unit of Granite, you get a stake in its high-quality industrial properties across Canada, the U.S., and Europe.

Industrial real estate has been a very resilient asset class. In some sense, Granite’s manufacturing, logistics, and warehousing properties form the infrastructure backbone of North American commerce and trade. Granite has credit-worthy tenants, strong occupancy, and long-term leases.

It also has a development portfolio that could accrete some solid mid-to-high single digit growth as it leases up. Granite also has a very solid balance sheet, so it can make opportunistic property purchases if the market declines.

Granite stock has a 4.8% distribution yield. The REIT has grown its annual distribution for 13 consecutive years. It also happens to be undervalued, so it is a great long-term bet for value and income today.

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 Robin Brown has positions in Granite Real Estate Investment Trust. The Motley Fool recommends Canadian National Railway, Granite Real Estate Investment Trust, and Pembina Pipeline. The Motley Fool has a disclosure policy.

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