For most Canadian investors, the real estate sector has long been the go-to for building passive income. However, the equation seems to be shifting in 2025. High interest rates, tighter lending standards, and stagnating property values are pushing more investors to reconsider their strategy.
But the good news is that the TSX still offers a variety of attractive alternatives. I’m not talking about speculative or risky growth stocks but rather income-generating machines with consistent cash flows and attractive yields. As markets stay volatile and economic headwinds continue, these dividend-rich companies could offer the kind of stability and income that real estate investors once relied on. Let’s uncover two such TSX-listed dividend stocks that have the potential to redefine passive income for the modern Canadian investor.
Enbridge stock
Let’s start with one of the most reliable income generators on the TSX, Enbridge (TSX:ENB). This energy infrastructure giant plays an important role in transporting oil and natural gas across North America through its extensive network of pipelines and storage facilities. Currently trading at $63.11 per share, ENB stock has a market cap of $137.6 billion and offers an attractive annualized dividend yield of nearly 6%.
In the last 12 months, Enbridge stock is up over 30%, reflecting investors’ growing confidence in its dependable cash flow and consistent results. In fact, 2024 marked the 19th consecutive year that the company met or exceeded financial guidance.
In terms of numbers, the company’s adjusted net profit for 2024 climbed by 5.1% YoY (year over year) to hit $6 billion, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 13% to $18.6 billion. This growth was fueled mainly by solid contributions from its recent acquisitions, increased volumes through its pipeline systems, and better cost control across its operations.
Notably, Enbridge recently completed a $19 billion acquisition of three U.S. gas utilities. It also placed $5 billion worth of new projects into service in 2024 and has another $8 billion in the pipeline with investments ranging from gas transmission to solar power. Given these solid fundamentals, ENB could be a great defensive stock for income-focused investors.
Exchange Income stock
And speaking of consistent income and upside potential, the next stock you can consider is Exchange Income (TSX:EIF). Based in Winnipeg, EIF runs a mix of regional airlines and specialized manufacturing businesses. After rising 7% over the last year, it currently trades at $49.37 per share with a market cap of $2.5 billion. At this market price, it offers an annualized dividend yield of 5.4% and pays a monthly dividend.
In 2024, the company hit record highs across the board, with $2.7 billion in revenue and $628 million in adjusted EBITDA, up 6% and 13%, respectively. This was driven by strong performance in its Aerospace & Aviation segment with the help of higher passenger volumes, medevac contract wins, and expanded routes with Air Canada.
Beyond the numbers, EIF is pushing for long-term growth through strategic acquisitions like Canadian North, and targeted investments in aircraft and infrastructure. These moves could boost its revenue while helping you build a more diversified and reliable income stream for years to come.
