My 3 Favourite Canadian Stocks for Passive Income

These three stocks offer a simple way to build reliable passive income over time.

Key Points
  • Nexus Industrial REIT (TSX:NXR.UN) offers a high monthly yield backed by strong occupancy and growing industrial demand.
  • North American Construction Group (TSX:NOA) brings long-term growth potential with a strong project backlog supporting future earnings.
  • Primaris Real Estate Investment Trust (TSX:PMZ.UN) delivers steady income with improving cash flow and a focus on higher-quality properties.

With rising financial pressures, the idea of earning passive income while you sleep or enjoy retirement is incredibly appealing.

The good news is you don’t need to be an expert to get started. It’s about finding solid companies with a history of rewarding shareholders and then giving those investments time to grow. For investors looking for regular income, Canadian dividend stocks are a great place to start. In this article, I’ll highlight three of my favourite dividend-paying stocks you can consider buying today.

dividend stocks are a good way to earn passive income

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Nexus Industrial REIT stock

Nexus Industrial REIT (TSX: NXR.UN) focuses on owning and managing industrial properties across Canada, including warehouses and distribution centres. This segment has benefited from the growth of e-commerce and the need for efficient supply chains.

Its stock currently trades at $7.38 per unit with a market cap of $720 million. Over the last year, it has gained 5.1%. While it remains below its 52-week high, it has rebounded 23% from its low, suggesting improving momentum. It offers an attractive 8.7% dividend yield, paid monthly.

In 2025, Nexus reported net income of $30.6 million in the fourth quarter and $59.5 million for the full year, supported by high net operating income and fair value gains. The real estate investment trust (REIT) continues to expand its portfolio, including a 325,000 sq ft (square footage) expansion in St. Thomas and a 115,000 sq ft development in Calgary. These projects are expected to contribute $4.9 million and $1.7 million in annual stabilized net operating income, respectively.

With a 96% occupancy rate and ongoing expansion efforts, Nexus remains a strong income-focused investment.

North American Construction stock

North American Construction Group (TSX: NOA) provides heavy civil construction and mining services across Canada, the United States, and Australia. NOA stock trades at $18.50 per share with a market cap of $511.4 million. While it has declined 6% year to date, its long-term performance remains impressive, with gains of over 600% in the last decade. The company pays a quarterly dividend of $0.12 per share, giving it a yield of 2.6%.

In 2025, North American Construction reported fourth-quarter revenue of $344.0 million, down 7.7% year over year. However, it has secured a strong backlog, with $3.9 billion in contracted revenue for 2026 and a bid pipeline of $12.6 billion.

Moreover, its acquisition of Iron Mine Contracting in Western Australia is expected to expand its capabilities and strengthen its growth outlook.

Primaris Real Estate Investment Trust stock

Primaris Real Estate Investment Trust (TSX: PMZ.UN) mainly focuses on enclosed shopping centres across Canada. While retail real estate has faced challenges, the company has been actively adapting its strategy. The stock currently trades at $17.08 per unit with a market cap of $2.0 billion and is up 13.8% over the past year. Primaris offers a monthly dividend, translating to a 5.1% yield.

In 2025, it reported funds from operations (FFO) of $1.846 per unit, up 9.2% from the previous year. The REIT continues to optimize its portfolio by acquiring high-quality properties and selling underperforming assets.

It is also working to unlock value from excess land around its shopping centres, particularly former Hudson’s Bay locations. The appointment of a new chief investment officer is expected to support these initiatives.

Foolish bottom line

Nexus Industrial REIT, North American Construction Group, and Primaris REIT each offer a different way to generate steady income. While no investment is risk-free, these companies have solid outlooks and a clear focus on rewarding shareholders.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Nexus Industrial REIT and Primaris Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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