Investing in dividend stocks is a simple and effective strategy for starting a passive income stream. Thankfully, the TSX has several fundamentally strong companies offering sustainable yields, making them reliable investments that can generate worry-free passive income for decades. Against this background, let’s explore two reliable TSX stocks that can help you earn $1,477 in passive income per year.
A reliable utility stock
Investors seeking reliable passive income could consider Canadian utility stocks. These companies are known for consistently paying and increasing their dividends, even during market downturns. Thanks to their rate-regulated assets, they generate predictable cash flows, which helps maintain their payouts. Plus, their services – like electricity and gas – are essential to the economy, providing an extra layer of safety and stability for investors.
Among the leading TSX utility stocks, Fortis (TSX:FTS) stands out for its stellar dividend growth history, visibility over future payouts, and resilient yield. In September, Fortis increased its quarterly dividend by 4%, marking 51 consecutive years of dividend growth. Fortis’ solid dividend growth is supported by its resilient business model and rate base growth that consistently expands its earnings.
Fortis recently announced a $26 billion capital plan for 2025 to 2029. This plan will expand its rate base by approximately $14 billion to $53 billion by 2029, reflecting average annual rate base growth of 6.5%. This strong rate base growth and robust transmission investment pipeline are likely to drive Fortis’s earnings and future dividend payments. Additionally, the plan focuses on transitioning to cleaner energy and strengthening infrastructure to support customer growth.
Fortis aims to grow its dividends by 4–6% annually through 2029. The stock offers a solid and secure yield of about 4%, making it a dependable investment that generates passive income.
A leading communication stock
Leading Canadian communication companies are famous for rewarding their shareholders with higher dividend payments. Among the top companies in this sector, BCE (TSX:BCE) looks attractive, considering its high yield and solid dividend growth history.
BCE has raised its dividend for 16 consecutive years, reflecting its ability to generate profitability despite macro and competitive headwinds. This Canadian communication giant has paid and increased its dividends consistently and offers an attractive yield of 10.6%.
BCE’s high yield reflects its consistent payouts and the recent decline in share price due to competitive headwinds. Nonetheless, the company’s cost-saving measures and focus on growing its customer base profitably augur well for earnings and are likely to support its payouts.
Despite short-term headwinds, BCE appears well-positioned to maintain its dividend growth. Its investments in fast 5G mobile services and a robust broadband fibre network will likely drive user growth. Additionally, BCE’s targeted promotions are designed to profitably attract and retain more customers.
The company is also diversifying its revenue streams by venturing into high-growth sectors like digital advertising, cloud computing, and cybersecurity. These initiatives are set to enhance its financial performance and further strengthen its ability to return cash to shareholders.
Earn $1,447 in passive income
Fortis and BCE are excellent picks for investors seeking steady passive income. Both have a strong track record of paying and growing their dividends, offering reliable returns.
The table shows that if you invest $10,000 in each stock (a total of $20,000), you could earn $1,447 per year in passive income.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| Fortis | $62.27 | 160 | $0.615 | $98.4 | Quarterly |
| BCE | $37.74 | 264 | $0.998 | $263.47 | Quarterly |
