On the surface, it may seem as if it’s been a relatively uneventful year for Canadian investors so far. Excluding dividends, the S&P/TSX Composite Index is just about even year to date. But as investors know all too well, it’s been nothing but uneventful in recent months. Volatility levels have been extremely high as of late with all of the uncertainty in the macroenvironment.
One way that investors can help offset volatility in a portfolio is through passive income. Fortunately, the TSX is loaded with high-yielding dividend stocks, many of which also own impressive dividend-payout streaks.
I’ve put together a well-rounded basket of three Canadian dividend stocks that passive-income investors will want to have on their radars. At today’s stock prices, each pick is yielding above 5%.
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Bank of Nova Scotia
Passive-income investors cannot go wrong with any of the major Canadian banks.
At a 6% dividend yield, Bank of Nova Scotia (TSX: BNS) is the highest-yielding of the Big Five. In addition, the bank has been paying a dividend to its shareholders for close to 200 consecutive years.
When you combine a 6% dividend yield with a 200-year payout streak, passive-income investors won’t find many better options than this one.
Brookfield Infrastructure Partners
While utility stocks typically are strong passive-income generators, they can also help minimize volatility in another way. Due to predictable revenue streams, utility companies tend to see very low levels of volatility, making them great defensive stocks to own in an investment portfolio.
At a market cap of close to $20 billion, Brookfield Infrastructure Partners (TSX: BIP.UN) is a global leader in the space. The company’s dividend is currently yielding 6%.
You won’t find many utility stocks as well-rounded as this one.
Northland Power
The renewable energy sector is a perfect place to be bargain-hunting right now. The sector as a whole has been struggling in recent years, yet I’d strongly argue it remains loaded with long-term growth potential.
One silver lining with the sector’s recent underwhelming performance is that dividend yields have shot up.
Shares of Northland Power (TSX: NPI) may be down 60% from all-time highs but the dividend is yielding close to 6%. The energy stock is also no stranger to delivering market-beating returns.
Short-term investors understandably might not have much interest here. But for those with a long-term time horizon, now could be an incredibly opportunistic time to be investing. There’s a very real possibility that Northland Power will return to its market-beating ways when the sector gets back on track. And in the short term, there’s a 6%-yielding dividend to enjoy.
Foolish bottom line
Don’t let the market’s volatility keep you on the sidelines. Instead, use this opportunity to take a hard look and see if your portfolio is lacking anything.
If you’re uncomfortable with the amount of volatility you’ve been experiencing as of late, now could be a great time to make some changes.
Dividend stocks can serve as dependable passive-income generators. In addition, depending on the company, they can also provide defensiveness and market-beating growth potential.
Don’t miss your chance to load up while dividend yields are as high as they are today.
