Canadians should aim to create multiple income streams to help them retire comfortably. One low-cost way to start a passive-income stream in retirement is by investing in high-quality dividend stocks with a growing dividend payout.
For instance, a $5,000 investment in Enbridge (TSX: ENB) stock back in September 2000 would have helped you purchase 750 shares of the company. In 2000, the TSX energy giant paid shareholders an annual dividend of $0.32 per share. So, 750 Enbridge shares would generate $240 in annual dividends, indicating a yield of less than 5%.
Today, ENB stock trades at $67.35, which means your 750 shares would be worth more than $50,000 today. Additionally, in the last 12 months, the TSX dividend stock has paid shareholders an annual dividend of $3.77. This means that 750 ENB shares would generate $2,827 in annual dividends.
Over the last 25 years, the effective yield for ENB stock has risen from 4.8% to 56.5% which is quite exceptional. It’s crucial to identify companies that have the ability to maintain and increase their dividend payouts across market cycles.
Since 2000, Enbridge has increased its dividend at an annual rate of over 10% and since the start of 2001, ENB stock has returned 1,700% to shareholders after adjusting for dividend reinvestments.
If you missed the bus on Enbridge, here’s another TSX dividend stock that should provide big income for retirees.
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Is this TSX dividend stock a good buy right now?
Brookfield Renewable Partners (TSX: BEP.UN) delivered strong second-quarter results while positioning itself as the energy solutions partner of choice for major technology companies amid global power demand driven by artificial intelligence infrastructure.
In the June quarter, Brookfield reported funds from operations (FFO) of US$371 million, an increase of 10% year over year. The increase in FFO was driven by robust hydroelectric performance and the successful execution of growth initiatives.
The hydroelectric segment delivered strong results, with FFO increasing by over 50% from the prior year, benefiting from above-average hydrology in U.S. and Colombian operations following a challenging previous year.
A key highlight was BEP’s framework agreement with Google to deliver up to three gigawatts of hydroelectric capacity across the United States. This follows a similar landmark agreement with Microsoft for over 10.5 gigawatts of renewable capacity, demonstrating BEP’s credibility with the world’s largest power buyers.
Brookfield has already contracted 670 megawatts under the Google framework through 20-year agreements for its Pennsylvania facilities, with additional contracting opportunities expected.
It successfully commissioned 2.1 gigawatts of new renewable capacity during the quarter and expects to bring eight gigawatts online in 2025, which would represent a record year. BEP’s development pipeline spans over 230 gigawatts globally, including battery storage solutions positioned to benefit from the 60% decline in battery costs over the past 24 months.
Westinghouse, BEP’s nuclear services business, delivered strong performance as nuclear power momentum builds globally. The business benefits from stable cash flows tied to servicing the existing global nuclear fleet and growing opportunities in new nuclear construction in the United States, where the government aims to construct 10 new reactors by the end of the decade.
BEP has completed US$19 billion in financings year-to-date, while maintaining a strong liquidity position of US$4.7 billion. The clean energy giant continues to target long-term total returns of 12-15%, leveraging its diversified technology platform to meet the accelerating global energy demand.
What is the BEP stock price target?
According to consensus estimates, BEP is forecast to increase adjusted FFO per share from US$1.69 in 2024 to US$2.24 in 2027. Analysts forecast its annual dividend per share to increase from US$1.42 per share in 2024 to US$1.64 per share in 2029.
In this period, the company’s dividend payout ratio is estimated to improve from 84% to 73%, providing BEP with the flexibility to target accretive acquisitions and lower balance sheet debt.
Today, the TSX stock offers you a forward yield of almost 6%. Moreover, given consensus price targets, it trades at a 17% discount right now.
