One of the most rewarding parts of investing is generating a comfortable annual dividend income that leaves your principal investment intact. Fortunately, the market gives us plenty of options to help make that dream a reality.
Here’s a look at three stocks that help generate a juicy $2,000 (or more) in annual dividend income.
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Let’s start with a real juicy yield
One of the most well-known income-producing stocks on the market is Enbridge (TSX: ENB). Enbridge is an energy infrastructure giant that has its tentacles in multiple parts of the market.
This includes operating the largest and most complex pipeline network on the planet. That pipeline network, which contains natural gas and crude segments, hauls massive amounts daily. In terms of volume, Enbridge transports nearly a third of all North American-produced crude and one-fifth of the natural gas needs of the U.S.
Enbridge also operates a growing renewable energy portfolio with facilities across Europe and North America. Those facilities include solar, wind, and hydro sites that generate a reliable revenue stream backed by long-term, regulated contracts.
Adding to that appeal, Enbridge also operates the largest natural gas utility in North America. This, too, provides a reliable and very defensive stream of revenue for the company, which allows it to invest in growth and pay out a handsome dividend.
Enbridge’s dividend is one of the reasons why investors flock to the stock as a source of annual dividend income. As of the time of writing, that quarterly dividend pays out an impressive 6.59%, making it one of the better-paying options on the market.
Add in the bank stock that pays handsomely
It’s hard to mention a list of stocks that can provide juicy annual dividend income without considering one of Canada’s big banks. In fact, dividend-seeking investors will want to consider adding Bank of Montreal (TSX: BMO) to any well-diversified portfolio.
BMO is the oldest of the big banks, with a near-200 year history of paying out handsome dividends to shareholders. The bank has also amassed an impressive history of providing investors with generous annual upticks to that dividend.
As of the time of writing, BMO pays out a generous 5.20% yield.
Turning to growth, BMO has expanded into the U.S. market in recent years. The most notable acquisition made by the bank was for California-based Bank of the West completed last year.
That deal greatly expanded BMO’s presence in the U.S. to 32 state markets, bringing onboard millions of new customers and billions in deposits.
Telecoms can be a great source of income
Canada’s big telecoms represent another source of income for investors looking for annual dividend income. And the telecom for investors to consider right now is BCE (TSX: BCE).
BCE is one of the largest (if not the largest) telecom in Canada. In addition to offering core subscription services, the telecom also operates a large media segment that provides a complementary revenue stream.
Telecoms generate a reliable (and increasingly defensive) revenue stream. This means that BCE can invest in growth and pay one of the best dividends on the market.
Speaking of dividends, BCE currently pays out an insane 8.50% yield. Part of the reason for that can be traced back to the rising interest rate environment we’ve seen in the past few years, which impacts capital-intensive businesses like telecoms.
It is worth noting that despite that long-term dip, rates are now dropping, and that’s helped BCE’s stock edge up nearly 8% in the past three months.
In short, BCE is a great option for investors looking for annual dividend income to consider right now.
Generate annual dividend income now
No investment is without risk. That’s why the importance of diversifying your portfolio cannot be understated enough. Fortunately, the trio of stocks noted above offer some defensive appeal in addition to a juicy annual dividend income.
Here’s how to generate $2,000 or more in annual dividend income by investing $10,000 in each of those three stocks.
| Company | Recent Price | No. of Shares | Dividend | Total Payout | Frequency |
| Enbridge | $55.17 | 181 | $3.66 | $662.46 | Quarterly |
| Bank of Montreal | $118.52 | 84 | $6.20 | $520.80 | Quarterly |
| BCE | $48.30 | 207 | $3.99 | $825.93 | Quarterly |
