The red-hot inflation made it clear to Canadians that having just one revenue stream is not going to cut it. Having alternative means of income to supplement your primary income is necessary to meet your needs. While working more than one job is a possibility, creating a passive-income stream is a better idea to achieve financial freedom.
To this end, investing in the stock market can be an excellent approach. Using your money to buy and hold dividend stocks gives you the chance to use your money to make more. Allocating your money to dividend stocks that increase payouts can help you keep pace with and even beat inflation.
Here are two TSX dividend stocks with high dividends you can consider adding to your portfolio.
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Fortis
Fortis (TSX:FTS) can be an excellent investment if you want to generate passive income through stock market investing. Fortis is a conglomerate that owns and operates several utility businesses in Canada, the U.S., Latin America, and the Caribbean. Serving around 3.4 million customers, it generates most of its revenue through long-term contracted assets in highly rate-regulated markets.
Its business model allows Fortis stock to generate predictable, recurring, and stable revenue. The defensive nature of its business allows Fortis stock to pay generous dividends to its shareholders, which it keeps increasing each year. Fortis is a Canadian Dividend Aristocrat with an over 50-year streak of dividend hikes.
As of this writing, it trades for $55.48 per share and pays its investors at a juicy 4.25% dividend yield. Due to its excellent track record, Fortis stock is a staple in many investment portfolios focused on generating a passive income.
Restaurant Brands International
Restaurant Brands International (TSX:QSR) might not be a familiar name for many people, but it is the owner of some of the biggest names in the international restaurant industry. The quick-service restaurant network boasts names like Burger King, Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs under its belt.
RBI stock generates revenue from royalty fees on sales and sales from company-owned locations. It also generates significant revenue from leases in franchised locations worldwide. As of this writing, RBI stock trades for $100.82 per share and pays its investors at a 3.14% dividend yield.
The company plans to open around 7,000 new locations worldwide in the next five years. The goal is to reach system-wide sales of $60 billion by 2028. Backed by solid revenues and the potential to generate even more in the coming years, RBI stock can be an excellent dividend stock for earning a passive income.
Foolish takeaway
These two dividend stocks look well-positioned to increase payouts to shareholders in 2024. With plans and the ability to grow their business, Fortis stock and Restaurant Brands International stock can potentially grow shareholder value. Buying and holding shares of these two stocks in your self-directed portfolio can help you generate a passive income to meet your financial goals.
