Canada is the perfect place to look for stocks that yield passive income. Some of Canada’s largest stocks also happen to be dividend stocks. Canada is one of the best places you can amply diversify your holdings and collect a growing stream of passive income.
With only $30,000, you can earn as much as $1,350 per year in passive income. The great thing is the amount you earn in year one. These stocks are dividend growth stocks, so the best part is that you will see that annual income rise over time. Here’s how a classic Canadian three-stock portfolio could work.
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A steady REIT for monthly passive income
Choice Properties Real Estate Investment Trust (TSX: CHP.UN) is one of the most defensive REITs you will find in Canada. You will find it anywhere a Loblaw store is located. That is because it was spun out to be the real estate entity of Loblaw Companies.
With a market cap of $11 billion, it is actually the largest REIT in Canada. It has 563 retail properties, 124 industrial properties, and 12 mixed-use properties.
It may not be the fastest-growing REIT. However, same-store rents are growing by about the rate of inflation. Choice has long-term leases (over 6.5 years), over 98% occupancy, and a very high-grade anchor in Loblaw. This stock is very defensive, given that 85% of its portfolio is necessity-based. These are properties people rely on for daily essentials.
Choice stock yields 5.2% today. It recently resumed a distribution growth posture. A $10,000 investment in Choice would earn $42.44 monthly or $509.34 annually.
A top energy infrastructure stock
Another perfect passive income stock is Pembina Pipeline (TSX: PPL). This stock is in an exceptional position to see some wins in the coming years. Suddenly, energy is back in vogue around the world. Global energy security is becoming an ever more pressing issue.
Pembina has the assets to get Western Canadian oil and gas to market. It is a one-stop shop for energy producers. By 2028, it will have an enviable LNG export terminal that will be moving highly sought Canadian LNG across the ocean.
Canada’s government is becoming more friendly to the energy sector. There could be even more infrastructure announcements in the years ahead.
Pembina stock yields 4.6%. Since 2022, it has resumed an annual dividend growth posture. A $10,000 investment would earn $114.31 quarterly or $456 annually.
A quality utility stock for safe passive income
Canadian Utilities (TSX: CU) is one of Canada’s great dividend growth stocks. It has raised its dividend for 54 consecutive years!
With a market cap of $12.0 billion, it is a major transmission and distribution utility provider across Alberta, Yukon, and Australia. Its business is diversified across natural gas transportation/storage, power generation, and water infrastructure. This utility is targeting 6.9% compounded annual growth in its rate base over the coming five years.
Canadian Utilities stock yields 3.9% today. A $10,000 investment would earn $97.52 quarterly or $390.08 annualized
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Choice Properties REIT | $15.31 | 653 | $0.065 | $42.44 | Monthly |
| Pembina Pipeline | $61.97 | 161 | $0.71 | $114.31 | Quarterly |
| Canadian Utilities | $46.98 | 212 | $0.46 | $97.52 | Quarterly |
Prices as of March 24, 2026
