Generating a growing source of passive income throughout the year is hands-down one of the most rewarding aspects of investing. Fortunately, there are more than a few investments that can provide a year-round income.
Investors looking to establish that year-round income should consider these stocks as anchors for any well-diversified portfolio.
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Pays in January, April, July, and October
Investors looking to establish a stream of year-round income will find it hard to ignore Canada’s most international bank.
Bank of Nova Scotia (TSX: BNS) is not only one of Canada’s big bank stocks but is also packed with long-term growth appeal and the juiciest dividend among its peers.
Scotiabank recently recentered its growth focus outside of Latin America, reorienting to a North American-focused strategy. That shift includes Scotiabank’s purchase of a 14.9% stake in U.S.-based KeyCorp.
Turning to income, Scotiabank’s quarterly dividend carries an impressive 5.91%, making it one of the best-paying options among its big bank peers.
Pays in February, May, August, and November
The next pick for year-round income is handily one of the best long-term investments on the market. Enbridge (TSX: ENB) is an energy infrastructure behemoth that operates the largest and most complex pipeline network on the planet.
The company also operates a renewable energy business and a natural gas utility. Both of those segments adhere to a similar model that traditional utilities follow. This means that they generate a reliable and recurring revenue stream backed by long-term, regulated contracts.
In fact, Enbridge’s segments generate an ample revenue stream that lets the company invest in implementing its multi-billion-dollar backlog of projects while paying a juicy dividend.
As of the time of writing, that dividend carries a yield of 5.96%. Enbridge has also provided annual upticks to that dividend going back three decades without fail.
Pays in March, June, September, and December
Rounding out the top three quarterly picks for year-round income is Telus (TSX: T). Telus is one of Canada’s big telecom stocks and boasts a core subscription-based business as well as a growing digital services group.
The core subscription business includes wireless, wireline, TV and internet segments, which generate the bulk of the company’s revenue.
The segments are also incredibly defensive, which is thanks to the growing importance of being connected in the years following the pandemic.
Telus’s digital services group provides a growing suite of services to niche segments of the market. This includes healthcare and agriculture, among other fast-growing segments.
As a year-round income investment, Telus offers a juicy 7.52% yield. The company has also provided annual or better upticks to that dividend for well over a decade without fail.
Bonus: This stock pays out every single month
Let’s finish off the list of year-round income stocks by recognizing RioCan REIT (TSX: REI.UN). RioCan is one of the largest real estate investment trusts (REIT) in Canada, with an impressive portfolio of properties focused on Canada’s major metro markets.
REITs like RioCan are excellent income stocks as they provide a generous monthly distribution, which can be compared to a landlord collecting rent.
In the case of RioCan, the REIT’s portfolio comprises a growing number of mixed-use residential properties that cater to both residential and commercial retail demand.
In terms of a distribution, as of the time of writing, RioCan offers an insane 6.77%. This means that a $20,000 investment will generate just over $112.
Build your year-round income portfolio
The four stocks noted above can provide a generous income stream throughout the year. Even better, investors who aren’t ready to draw on that income can choose to reinvest it until needed.
This allows any eventual income to continue growing until needed.
Here’s how a $20,000 investment into each of the four year-round income stocks can help build your income portfolio.
| Company | Recent Price | No. Of Shares | Dividend | Total Payout | Frequency |
| Bank of Nova Scotia | $71.69 | 278 | $4.24 | $1,178.72 | Quarterly |
| Enbridge | $63.26 | 316 | $3.77 | $1,191.32 | Quarterly |
| Telus | $22.14 | 903 | $1.67 | $1,508.01 | Quarterly |
| RioCan Real Estate | $17.11 | 1,168 | $1.16 | $1,354.88 | Monthly |
