Finding that perfect mix of income stocks to bolster your retirement income can make a huge difference. Fortunately, for investors looking to establish decades of passive income, there’s no shortage of great stocks
Here’s a look at a trio of options that are superb candidates for those seeking decades of passive income.
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Buy and hold forever
Some of the best stocks are those which can offer a recurring and stable income stream that continues to grow. That’s a key reason why the first stock investors seeking decades of passive income should consider Fortis (TSX:FTS).
Fortis is a utility stock. In fact, it’s one of the largest utilities in North America with a portfolio that includes the U.S., Canada, and the Caribbean.
One of the reasons why utilities like Fortis are such great options for investors seeking decades of passive income is because of their business model.
In short, utilities provide a necessary service that cannot be replaced. That service is also backed by long-term regulated contracts that span decades. This means that utilities like Fortis generate a recurring and stable revenue stream.
And it’s that revenue stream that allows Fortis to invest in growth and pay out a recurring and stable dividend. As of the time of writing, that dividend carries a yield of 3.8%.
Even better, Fortis has provided annual upticks to that dividend for over 50 consecutive years and plans to continue that cadence.
In other words, investors looking for decades of passive income should consider Fortis as any buy-and-forget option.
Banking on success now and in the future
It would be hard, if not impossible, to mention at least one of Canada’s big banks as an option for those seeking decades of passive income. Bank of Nova Scotia (TSX:BNS) is a great option for those investors right now.
Scotiabank isn’t the largest of the big banks, but it is known as the most international of the big banks. Until recently, the focus of that international arm was on Latin American markets with their higher growth potential.
That focus has now shifted more to the U.S. market, where Scotiabank announced it was buying into U.S.-based KeyCorp last year.
Scotiabank’s venture into international markets shouldn’t discount the bank’s performance at home. Specifically, the Canadian market is both well-regulated and mature, providing Scotiabank with a steady revenue stream.
And it’s that revenue stream which allows the bank to invest in that international growth, while also paying out one of the best dividends. As of the time of writing, Scotiabank’s quarterly dividend pays out a yield of 6.2%.
This means investors looking for decades of passive income will not be disappointed in adding Scotiabank to any long-term portfolio.
Power your portfolio for decades
One final option for investors seeking decades of passive income to consider is Enbridge (TSX:ENB). Enbridge is one of the largest energy infrastructure companies on the planet.
Most of the company’s revenue is derived from its lucrative pipeline network. The pipeline business transports both crude and natural gas to locations across Canada and the U.S., generating a recurring and well-covered revenue stream.
Beyond its core pipeline business, Enbridge also operates a natural gas utility operation as well as a growing renewable energy portfolio.
In short, Enbridge offers multiple, well-diversified business units that generate revenue for the company, allowing it to invest in growth and pay a quarterly dividend.
That dividend currently pays out a handsome 6% yield, and Enbridge has provided annual upticks to that dividend for three decades without fail.
In other words, investors looking for decades of passive income should strongly consider Enbridge.
Build decades of passive income
No stock, even the most defensive is not without some risk. Fortunately, the above stocks can provide decades of passive income for any investor.
Here’s how that pans out by investing $30,000 into each stock.
| Company | Recent Price | No. of Shares | Dividend | Total Payout | Frequency |
| Fortis | $64.55 | 464 | $2.46 | $1,144.44 | Quarterly |
| Bank of Nova Scotia | $68.87 | 435 | $4.24 | $1,844.40 | Quarterly |
| Enbridge | $62.94 | 476 | $3.77 | $1,794.52 | Quarterly |
In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.
Buy them, hold them, and watch them (and your income) grow.
