There’s no question that passive income is one of the most powerful tools available to investors. Whether you’re looking to supplement your salary, cover some of your monthly expenses, or build toward financial freedom, finding the highest-quality Canadian stocks to buy and earning consistent cash flow without having to lift a finger can go a long way.
That’s why dividend stocks remain so popular, especially among Canadian investors. Not only can they generate steady income month after month or quarter after quarter, but many of the top dividend stocks also offer long-term capital appreciation. This dual benefit of income and growth is what makes high-quality dividend stocks such a compelling choice for long-term portfolios.
However, not all dividend stocks are created equal. Chasing the highest yield might seem tempting, but more often than not, those sky-high payouts come with elevated risk.
In fact, when a dividend yield looks too good to be true, it often is. These companies may be overleveraged, struggling to grow, or at risk of cutting their payouts altogether, none of which is ideal for reliable income.
Instead, it’s often better to focus on safer, more conservative stocks with lower yields, but stronger fundamentals. Often, the best Canadian dividend stocks to buy tend to raise their payouts gradually over time, supported by consistent cash flow and resilient business models. These are the kinds of companies you can buy and hold for decades, letting your passive income grow alongside the capital in your portfolio.
So, with that in mind, here are three of the safest Canadian dividend stocks to consider right now if you’re looking to lock in reliable passive income for the long haul.
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One of the best Canadian dividend stocks to buy now
If you’re looking to buy some of the safest stocks possible and significantly boost your passive income , there’s no question that Fortis (TSX:FTS) is one of the best Canadian dividend stocks to buy now.
Not only is Fortis a massive $32 billion utility stock, one of the lowest-risk industries you can invest in, but it has also increased its dividend every year for more than half a century now.
That just goes to show what an incredibly reliable investment Fortis is. The stock has not only managed to remain profitable but also consistently grow that profitability and cash flow generation across various economic environments, demonstrating why the utility industry is an excellent place to find reliable dividend stocks.
And today, Fortis is offering a dividend yield of roughly 3.8%. Moreover, in the last five years, it has increased that dividend by more than 28%.
Two reliable infrastructure stocks that pay growing dividends
In addition to Fortis, two more of the best and most reliable Canadian dividend stocks to buy now are Enbridge (TSX:ENB) and Brookfield Infrastructure Partners (TSX:BIP.UN).
While neither is as safe as Fortis, as infrastructure stocks both operate essential businesses that generate significant cash flow. In addition, both offer even more growth potential than Fortis, making them two of the best dividend stocks that Canadian investors can buy now.
For example, Enbridge is one of the most important companies in the North American economy since it transports roughly 30% of the crude oil produced and roughly 20% of the natural gas consumed in the United States, among its other operations.
Meanwhile, Brookfield owns different infrastructure assets that are diversified all over the globe, giving it a tonne of diversification.
It’s these reliable business models that continue to generate significant cash flow every year, leaving Enbridge and Brookfield with enough capital to invest in growing the business for the future, while retaining cash to increase the dividend each year.
In fact, Enbridge currently offers a dividend yield of 6.1% and has increased its dividend every year for three straight decades. Meanwhile, Brookfield Infrastructure currently offers a yield of roughly 5.3% and has increased its dividend for 15 straight years.
So if you’ve got cash you’re looking to put to work today and want to add safe and reliable dividend stocks to help boost the passive income your portfolio generates, there’s no question that both Brookfield and Enbridge are two of the best stocks Canadian investors can buy now.
