Building a passive income stream is a major goal for Canadian investors. That’s especially true this year as market volatility and rising living costs push investors to seek out more predictable cash flows. That’s where a steady stream of dividends can help smooth out finances and create long-term stability.
A popular benchmark to achieve is $1,000 per month in passive income. That’s enough to cover some recurring bills, support retirement income, or even add some buffer.
But which dividend stocks can help investors reach that goal? Fortunately, there are plenty of great options on the market to choose from.
Here are three strong passive income options that can help investors work toward that $1,000 per month milestone.
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Enbridge: A reliable high‑dividend anchor
Enbridge (TSX:ENB) is an all-time favourite among income‑focused investors. The company is one of the most widely held dividend stocks in Canada, especially among investors focused on long-term income stability.
The energy infrastructure behemoth is known for its high-yield and stable cash flows.
Part of the reason for that appeal is Enbridge’s attractive business model. Enbridge generates the bulk of its revenue from regulated and contracted assets. This includes a natural gas utility and renewable energy business in addition to its well-known pipeline network.
Enbridge offers investors an attractive 5.3% yield, making it one of the better-paying options on the market. Another compelling feature is Enbridge’s stability. Enbridge boasts a payment history going back seven decades and three decades of consecutive annual increases.
That stability, factored in with Enbridge’s scale and income reliability, makes it one of the better passive income options on the market.
Bank of Nova Scotia: A big‑bank dividend machine
Another great option for passive income seekers to consider is Bank of Nova Scotia (TSX:BNS). Scotiabank offers one of the highest yields among Canada’s big bank stocks, making it an attractive option for investors looking to boost their income.
Like Enbridge, Scotiabank has a long history of payments and increases. Scotiabank has paid dividends for more than a century without fail. The bank has also provided annual upticks to its dividend for over a decade.
As of the time of writing, Scotiabank offers a yield of 4.5%.
Scotiabank benefits from both its stable domestic business and its growth-focused international segment. The bank’s international focus represents a refocusing towards mature markets in North America over more volatile Latin American markets.
That shift has helped to strengthen profitability and improve efficiency. By extension, this supports the growth and sustainability of Scotiabank’s dividend.
For investors seeking a solid passive income stock to help generate $1,000 in passive income, Scotiabank is a top component of that income machine.
Telus: A high-yield telecom with long-term growth drivers
One final option for investors seeking passive income to consider is Telus (TSX:T). Telus is one of Canada’s big telecoms and generates a defensive revenue stream backed by essential subscriber-based services.
Telus has a long history of paying dividends and has continued to invest in expanding its network and growing its adjacent businesses, Telus Health and Telus International.
The telecom recently paused its dividend growth program, but the current yield remains elevated, making it a compelling option for income-focused investors.
As of the time of writing, Telus offers a yield of 9.3%.
Telus continues to attract income investors thanks to its combination of defensive cash flow and one of the highest yields among major Canadian telecoms.
Reach $1,000 per month in passive income
Reaching $1,000 per month requires a sizable investment. Fortunately, investors who aren’t at the point of needing to draw on that income yet can start smaller and invest over a longer period of time.
By investing over longer periods, reinvested dividends provide the additional compounding to meet the stated income goal.
Here’s how that $1,000 per month income pans out for the three stocks mentioned above:
| Company | Recent Price | Total Invested | No. of Shares | Dividend | Total Payout | Frequency |
| Enbridge | $72.86 | $75,000 | 1029 | $3.88 | 3992.52 | Quarterly |
| Bank of Nova Scotia | $96.94 | $45,000 | 464 | $4.40 | $2,041.60 | Quarterly |
| Telus | $18.04 | $65,000 | 3603 | $1.67 | $6,017.01 | Quarterly |
| Total Payout: | $12,051.13 | Monthly: | $1,004.26 |
With consistent contributions and a focus on reliable dividend payers, reaching $1,000 per month in passive income is a realistic long-term goal.
