How to Invest $250,000 in Canadian Dividend Stocks for $12,027 Each Year

Here’s how to make the ideal portfolio to never worry about anything again.

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When it comes to financial peace of mind, few things rival a reliable stream of dividend income. Whether you’re planning for retirement or just want to free yourself from paycheque dependency, a well-built dividend portfolio can help you get there. If I had $250,000 to invest today and wanted to never worry about money again, I’d start with three dependable TSX stocks. Ones like Royal Bank of Canada (TSX:RY), Dream Industrial REIT (TSX:DIR.UN), and TC Energy (TSX:TRP). Each offers something unique, but they all share a common trait: consistent income backed by strong fundamentals.

RBC

Royal Bank is Canada’s largest bank and one of the top financial institutions in the world. It reported net income of $4.4 billion in the second quarter of 2025, up 11% year over year. Diluted earnings per share (EPS) hit $3.02, while its return on equity stood at 14.2%. That strength came from personal banking, wealth management, and commercial banking. While capital markets dipped, the bank’s diversified business model held up. It also recently raised its dividend to $6.16 per share, boosting its annual yield to about 3.4% at writing.

With a CET1 ratio of 13.2% and plans to buy back up to 35 million shares, Royal Bank is reinforcing its balance sheet while returning value to shareholders. In a world filled with economic uncertainty and rising trade disruptions, this kind of stability matters. Royal Bank’s inclusion of HSBC Canada continues to enhance earnings, and with its size and scale, it remains a foundational stock for income seekers.

Dream Industrial

Next is Dream Industrial REIT, a real estate investment trust (REIT) that focuses on logistics and light industrial properties across Canada, Europe, and the U.S. The company has quietly become one of the top-performing industrial REITs on the TSX. In the first quarter of 2025, Dream reported net income of $70.6 million and funds from operations of $73 million, up from $69.6 million in the prior quarter. It also reported a 3.2% increase in net rental income year over year.

With a monthly distribution of $0.05833 per unit, around $0.70 annually, the REIT offers a yield of about 5.9% at recent prices. Occupancy sits near 98%, and the trust continues to increase rents on renewals. With supply chains normalizing and e-commerce continuing to thrive, industrial real estate remains a solid long-term play. Dream’s consistent income and exposure to multiple regions make it a strong diversifier.

TRP

Finally, there’s TC Energy. Known for its vast network of natural gas and oil pipelines, TC Energy recently announced a plan to spin off its liquids pipelines business to focus more on natural gas and energy solutions. In its latest report, the company posted net income of $1.1 billion and comparable earnings of $1.26 per share. It reaffirmed its full-year 2025 financial outlook and capital investment plan, which is expected to exceed $8 billion.

Even more impressive is its dividend history. TC Energy has increased its dividend for 24 consecutive years. At today’s prices, the dividend yield is around 5.1%, which makes it one of the top payers among large-cap Canadian stocks. Despite higher debt levels, the company’s stable cash flow from regulated assets supports its payout. Its shift toward more sustainable infrastructure should also help reduce risk over time.

Bottom line

If I had $250,000, I’d consider allocating evenly between these stocks within a TFSA. And because each of these companies operates in a different sector, the diversification helps manage risk. Together, this alone would bring in annual dividends of $12,027.30!

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
RY$179.00465$6.16$2,862.40Quarterly$83,235.00
DIR.UN$11.857,031$0.70$4,921.70Monthly$83,116.35
TRP$66.751,248$3.40$4,243.20Quarterly$83,238.00

At the end of the day, dividend investing isn’t just about yield; it’s about consistency and long-term dependability. These three stocks offer both. With the economy shifting, rates staying elevated, and volatility in the headlines every other day, a portfolio built around Royal Bank, Dream Industrial, and TC Energy can help you sleep a little better at night. That’s the kind of financial freedom $250,000 should buy.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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