Dividend investing is one of the best methods to create a passive-income stream that can keep pace with, and even beat, inflation. Investing in high-quality dividend stocks can help you generate worry-free returns on your investment for years. Identifying the stock of well-capitalized companies that have resilient business models and a track record of raising dividends in the past is a necessary skill to unlock decades of passive income through dividends.
To generate a reliable income for years, you must invest in companies that can deliver regular payouts to shareholders. Today, I will discuss two TSX dividend stocks that have paid investors their dividends for decades and increased payouts each year.
Fortis
Fortis (TSX:FTS) is a darling stock for many Canadian investors, especially those seeking reliable dividends. Fortis is a $35.46 billion market-cap Canadian utility holdings company. It has several natural gas and electricity utility businesses under its belt, operating in Canada, the U.S., and the Caribbean. The company has a defensive business model because it provides an essential service to over 3.4 million customers.
The company generates most of its revenue from long-term contracted assets in regulated markets, virtually guaranteeing predictable cash flows. With no unpredictability, the company’s management can comfortably allocate funds to capital programs and grow shareholder dividends. Fortis stock has an over 50-year dividend-growth track record to prove it. As of this writing, it trades for $70.16 per share and boasts a 3.65% dividend yield that you can lock into your portfolio today.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is another staple holding in many investor portfolios due to its reliable dividends. The $94.66 billion giant in the energy sector is headquartered in Calgary. It is an oil and natural gas production company that has raised its dividends to investors for 25 years without fail. The company’s resilient payouts come through its portfolio of low-decline and long-life assets, with a diversified portfolio that offers a balanced production mix.
Even if traditional energy is to be phased out, it will be decades before that happens. Oil and gas producers like Canadian Natural Resources will continue to be important to this end. As of this writing, Canadian Natural Resources stock trades for $45.44 per share and pays investors $0.5875 per share each quarter, translating to a 5.17% annualized dividend yield that you can lock into your portfolio today.
Foolish takeaway
Building a portfolio of reliable dividend stocks can be an excellent way to create a passive income stream that delivers substantial returns. If you have $20,000 to invest, I would not recommend putting it all into one or two stocks. For the sake of explaining the kind of returns it can generate, I will show you how a hypothetical $20,000 divided evenly across Fortis stock and Canadian Natural Resources stock can translate into dividend earnings per year.
| Ticker | Recent Price | Number of Shares | Dividends per Share | Annual Dividends per Share | Total Annual Payout |
| FTS | $70.16 | 142 | $0.64 | $2.56 | $363.52 |
| CNQ | $45.44 | 220 | $0.5875 | $2.35 | $517 |
| Total Annual Payout | $880.52 | ||||
