5 Top Dividend Stocks to Turn Your Savings Into a Steady Income Stream

Whether you want diversification or simple income streams, these five dividend stocks offer it not just now but for life!

Pile of Canadian dollar bills in various denominations

Source: Getty Images

Whether you’re looking for monthly income, global market access, real estate stability, banking strength, or insurance reliability, these picks have got you covered. By adding these to your portfolio, you’re not just investing in stocks. You’re investing in a steady, growing income stream that can support your financial goals. So, let’s get into the five best stocks to turn your savings into a steady income stream.


First, let’s start with a steady exchange-traded fund (ETF): BMO Monthly Income ETF (TSX:ZMI). The ZMI ETF is like the Swiss Army knife of your investment portfolio. This ETF is designed to provide monthly income, and it does so with a diverse mix of Canadian stocks and bonds. 

Over the years, ZMI has demonstrated strong performance, consistently paying dividends. Historically, it’s provided a yield hovering around 4-5%. This is a sweet spot for those looking for a steady income without excessive risk. Right now, it sits just higher at 5.09%.

With its balanced approach, ZMI isn’t just a bet on one sector or one company; it spreads out the risk and ensures you get a piece of the action from multiple sources. As the economy grows and these underlying assets appreciate, your steady stream of income continues to flow.


Next up is Vanguard FTSE Global All Cap ex Canada Index ETF (TSX:VXC). If ZMI is your Swiss Army knife, VXC is like having an all-access pass to the world’s best financial markets. This ETF provides exposure to over 10,000 stocks from developed and emerging markets, excluding Canada. 

By investing in VXC, you’re tapping into global economic growth. Historically, VXC has delivered solid returns, supported by dividends from international giants. Its yield might be slightly lower than ZMI at 1.53%, but the growth potential is immense. As global markets expand and companies continue to pay dividends, VXC investors can enjoy a growing income stream from diverse sources around the globe.

Granite REIT

Now, to throw a real estate investment trust (REIT) in the mix. Granite Real Estate Investment Trust (TSX:GRT.UN) is a crown jewel of the real estate sector. Specializing in industrial and logistics properties, Granite has a rock-solid portfolio that generates consistent rental income. 

Over the years, Granite has shown impressive growth, expanding its portfolio and increasing its funds from operations (FFO). This growth translates into higher dividends for shareholders. Currently, GRT.UN offers a dividend yield of around 4.96%, which is both attractive and sustainable. With the increasing demand for industrial spaces driven by e-commerce and global trade, Granite’s future looks bright, ensuring that your investment continues to yield steady income.


Canadian Imperial Bank of Commerce (TSX:CM) is a heavyweight in the Canadian banking sector. With a rich history and a reputation for stability, CM is a reliable income generator. Historically, CM has offered a robust dividend yield, often exceeding 5% and currently at 5.46%. The bank’s earnings growth has been steady, driven by strong performance in personal and commercial banking, wealth management, and capital markets. 

Even in turbulent economic times, CM has managed to maintain and even grow its dividend payouts. Looking ahead, as the economy recovers and interest rates stabilize, CM’s strong fundamentals and prudent management will continue to support its dividend payments, making it a cornerstone of any income-focused portfolio.


Finally, Manulife Financial (TSX:MFC) is a global giant in the insurance and financial services industry. Manulife’s business model generates steady cash flow, which is crucial for sustaining its dividend payments. Historically, MFC has provided a dividend yield in the range of 4-5% and at 4.51% as of writing, supported by consistent earnings growth. 

The company’s diverse operations across Asia, Canada, and the United States offer a cushion against regional economic fluctuations. As the global population ages and the demand for insurance and retirement products rises, Manulife is well-positioned to capitalize on these trends. This future growth potential means more earnings and, consequently, more dividends for shareholders.

So, from diversified ETFs that give you global exposure and balance to individual stocks that dominate their sectors, these investments combine historical performance with future growth potential.

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 Amy Legate-Wolfe has positions in Canadian Imperial Bank Of Commerce and Vanguard Ftse Global All Cap Ex Canada Index ETF. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Cogs turning against each other
Dividend Stocks

How Interest Rate Cuts Affect REITs

Now is a good time to investigate Canadian REITs and take a position in the form of stocks or exchange…

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Dividend Stocks

3 Affordable Passive-Income Stocks That Pay Monthly

These three monthly-paying dividend stocks could boost your passive income.

Read more »

Dividend Stocks

Retirees: 2 High-Yield Dividend Stocks to Buy in July

Retirees can rely on these dividend stocks for steady passive income and high yields.

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Dividend Stocks

CPP Benefits Not Enough? This Top Dividend Stock Can Help Fund Your Retirement

Dividend stocks like Fortis Inc (TSX:FTS) have funded many a retirement.

Read more »

A steel grain silo storage tank with solar panel in a yellow canola field in bloom in Alberta, Canada.
Dividend Stocks

The Ultimate TSX Stock to Buy With $1,000 Right Now

Once at triple-digit prices, Nutrien stock (TSX:NTR) now offers a steal of a deal for long-term growth as well as…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

Set and Forget: 1 Dividend Stock That Could Create $1,000 in Tax-Free Passive Income in 10 Years

Enbridge operates a low-risk business that has allowed the TSX dividend giant to raise its payout by 10% annually since…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Passive Income: How to Make $106 Per Month Tax Free

Holding quality, high-yield dividend stocks such as Freehold Royalties in a TFSA can help you earn tax-free income for life.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Earn a TFSA Paycheque Every Month and Pay No Taxes on it

Stocks like First National Financial (TSX:FN) pay you monthly. You can also earn monthly dividends through portfolio diversification.

Read more »