Having a reliable source of passive income could not only provide financial security but also offer the freedom to pursue other interests or even meet your retirement goals earlier than expected. Dividend investing is one of the most popular strategies to generate this kind of passive income.
In this article, I’ll give you a breakdown of how you could earn $2,000 annually in dividends by investing $27,297 in three top Canadian dividend stocks.
Bank of Nova Scotia stock
Bank of Nova Scotia (TSX: BNS), or Scotiabank, is the first dividend stock you may want to hold in your long-term investment portfolio. The bank is currently Canada’s fourth largest with a market capitalization of $78.2 billion as its stock trades at $63.63 per share after rallying by around 15% over the last nine months. At this market price, Scotiabank offers an attractive 6.7% annualized dividend yield.
In addition to Canada, Scotiabank has a strong presence in international markets, with a notable portion of its international revenue coming from the United States, Mexico, and Chile. Its diversified revenue streams and geographic diversification help to mitigate the risks of operating in a single business segment or region. Moreover, its ongoing investments in digital transformation and innovation could help it maintain strong financial growth in the long run.
Enbridge stock
Enbridge (TSX: ENB) is also among the top Canadian dividend stocks to hold for the long term. This Calgary-headquartered company currently has a market cap of $110.8 billion as its stock trades at $50.84 per share with 6.6% year-to-date gains. ENB stock has an impressive 7.2% annualized dividend yield at the current market price.
The company owns a large network of energy transportation and distribution assets, which helped it generate largely predictable cash flows and reward its investors with increasing dividends each year. As a result, Enbridge has been increasing dividends for 29 consecutive years, making it one of the Canadian Dividend Aristocrats. In addition, the firm’s gradually growing interest in crude oil exports and renewable energy segments is likely to help it continue its growth trajectory and sustain its dividend payments.
BCE stock
BCE (TSX: BCE) could be another reliable dividend stock to bet on right now. After sliding by nearly 12% so far in 2024, the Verdun-based telecom giant’s annualized dividend yield looks even more impressive, which currently stands at 8.7%. It currently has a market cap of $42.1 billion as the stock trades at $46.10 per share.
Notably, many of BCE’s services are essential for everyday communication and entertainment, which ensure a consistent demand and stable revenue. Moreover, its resilience to economic fluctuations and continued focus on investing in superior infrastructure make it a high-quality dividend stock to hold for years to come.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Bank of Nova Scotia | $63.63 | 170 | $1.06 | $180 | Quarterly |
| Enbridge | $50.84 | 170 | $0.915 | $156 | Quarterly |
| BCE | $46.10 | 170 | $0.9975 | $170 | Quarterly |
| Total Yearly Payout | $2,021.30 | ||||
| Prices as of July 29, 2024 |
Bottom line
If you buy 170 shares each of Scotiabank, Enbridge, and BCE with a total investment of around $27,297 right now, you could expect to earn more than $2,000 in annual dividend income based on their current yield percentages. In addition, this investment strategy spreads your risk across three solid sectors, banking, energy, and telecom, which could protect your portfolio against sector-specific downturns and market volatility.
