Picking the right investments now can help establish decades of passive income. Fortunately, the market gives us plenty of options to help choose the right stocks.
Investors looking to establish decades of passive income can start building out a portfolio today with these three stellar Canadian stocks.
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Strong growth, juicy yields
The first option to consider for decades of passive income is Enbridge (TSX:ENB). Enbridge is a leading energy infrastructure company that offers both growth and income-generating options for investors.
The company operates several diversified operations, including a pipeline business, a renewable energy operation, and a natural gas utility. Collectively, those segments provide defensive appeal and stable revenue generation.
That revenue generation allows Enbridge to invest in growth initiatives from its multi-billion-dollar backlog while also paying out a stellar quarterly dividend.
Enbridge’s dividend is what should excite investors looking to establish decades of passive income. As of the time of writing, Enbridge pays out a generous yield of 5.9%.
Adding to that appeal is the fact that Enbridge has provided investors with healthy annual bumps to that dividend for three consecutive decades without fail.
That fact alone makes this a top candidate for investors seeking decades of passive income. New investors who drop $10,000 into Enbridge will generate an income of just shy of $600.
That’s not enough to retire on, but it is enough to purchase a few shares each quarter on reinvestments alone. In other words, a $10,000 investment will make Enbridge a great buy-and-forget stock on autopilot.
Consider this defensive titan
Another great option for investors seeking to establish decades of passive income is Canadian Utilities (TSX:CU). Canadian Utilities generates a reliable revenue stream from its utility business that is both stable and defensive.
Utility stocks like Canadian Utilities are bound by long-term regulated contracts that guarantee a flow of reliable and recurring revenue. And like Enbridge, that revenue stream has room for both growth investments and a handsome quarterly dividend.
As of the time of writing, Canadian Utilities boasts a yield of 4.8%. The company also has the most impressive run of annual consecutive increases to that dividend, currently spanning 53 years.
That incredible feat makes Canadian Utilities one of only two Dividend Kings in Canada.
Investors seeking decades of passive income can take solace in knowing that a $10,000 investment in Canadian Utilities will generate an income of just under $500.
Again, the intent here is to establish an income stream that will grow on its own by several shares with each quarterly reinvestment.
Supercharge your portfolio with this telecom stock
Canada’s telecoms represent yet another fine option for investors looking for decades of passive income. Specifically, Telus (TSX:T) offers investors a great mix of growth and income-earning capabilities.
Like its big telecom peers, Telus generates revenue from its subscriber-based business segments. Where Telus differs from its peers is in the lack of a media segment.
Instead, Telus has invested in a digital services segment, providing digital solutions to customers in various fields such as agriculture and healthcare.
That investment comes while the telecom continues to invest in its growing 5G network in Canada.
Turning to income, Telus offers a tasty, if not insane, 7.4% yield. Using that same $10,000 example from above, this translates into an income of approximately $750. At the current stock price, that income represents an additional 33 shares through reinvestments each year.
And like the other two stocks mentioned above, Telus has an established cadence of providing annual or better increases going back two decades.
Establish decades of passive income starting today
No stock is without risk, but the three stocks mentioned above can offer investors some defensive appeal. Additionally, they each offer growth potential as well as a growing income.
Here’s how a $30,000 investment split evenly across each of the three stocks works out.
| Company | Recent Price | No. of Shares | Dividend | Total Payout | Frequency |
| Enbridge | $63.79 | 156 | $3.77 | $588.12 | Quarterly |
| Canadian Utilities | $37.51 | 266 | $1.83 | $486.78 | Quarterly |
| TELUS | $22.32 | 448 | $1.67 | $748.16 | 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 your future income grow.
