Canadian income investors are blessed with an ample number of TSX stocks that can provide a steady stream of passive income. Even better, those top dividend picks are scattered across multiple segments of the economy, giving them a diversified appeal.
Given a $20,000 portfolio focused on high-quality TSX stocks, it’s possible to build a diversified and growing income stream that can reach $1,000 annually.
Here’s a look at some of the best TSX stocks to add to that portfolio, given a $20,000 initial investment.
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Enbridge: A high-yield cornerstone
The first among those top TSX stocks to own for income is Enbridge (TSX: ENB). Enbridge is well-known across the market for offering one of the best and most dependable dividends.
Enbridge is an energy infrastructure behemoth. The company’s portfolio includes pipelines, renewable energy, and natural gas utility operations. All of these segments are highly defensive, have significant long-term growth potential, and generate cash flow for the company. The bulk of Enbridge’s revenue stems from the pipeline business.
As of the time of writing, Enbridge offers a quarterly dividend with a yield of 5.2%. Enbridge has also provided annual upticks to that dividend for over three decades.
This fact makes Enbridge one of the TSX stocks to consider in any $20,000 portfolio.
TC Energy Corporation: The pipeline complement
Second on the list of TSX stocks to add to that $20,000 portfolio is TC Energy Corporation (TSX: TRP). TC offers a respectable 4% yield, making it a valuable add-on for any passive‑income portfolio.
Like Enbridge, TC is an energy infrastructure giant. The company’s extensive natural gas pipeline network plays a crucial role in North American energy markets. This gives TC a defensive edge that supports long-term cash flows.
In short, TC is a steady performer, following a resilient business model that generates a recurring, stable, and growing source of revenue. That stability allows TC to pay out its dividend and provide annual upticks to that payout.
Within a $20,000 portfolio, TC fits the role of a defensive compounder. It keeps generating revenue irrespective of how the broader market fares.
Bank of Nova Scotia: The dependable Canadian bank dividend
It would be nearly impossible to compile a list of TSX stocks to generate income and not mention one of Canada’s big bank stocks. Bank of Nova Scotia (TSX: BNS) is a big bank to consider, offering financial‑sector stability to that portfolio mix.
Scotiabank has a long history of paying dividends that stretches back well over a century. The bank’s international exposure adds a layer of diversification and growth beyond the mature Canadian market.
Scotiabank pays a quarterly dividend that, as of the time of writing, carries a yield of 4.4%. This is higher than its big bank peers and continues to grow each year through annual upticks.
Telus: The big telecom with a bigger dividend
The final pick in this list of TSX stocks is Telus (TSX: T). As one of Canada’s big telecom stocks, Telus boasts the defensive appeal of the telecom sector, along with meaningful income potential.
Telus’ core subscription services generate recurring revenue, supporting its quarterly dividend. Telus has also expanded into adjacent areas such as digital health and customer experience management, both of which provide additional long‑term growth potential.
For income investors, Telus offers a high yield backed by reliable revenue generation. As of the time of writing, Telus yields 10.2%.
How these TSX stocks can generate $1,000 in passive income
No stock is without risk, and that includes the four TSX stocks mentioned above. Fortunately, this group offers growth, defensive appeal and an attractive income.
Here’s how that $20,000 initial investment can provide over $1,000 in annual income spread evenly across all four companies.
| Company | Recent Price | Total Invested | No. of Shares | Dividend | Total Payout | Frequency |
| Enbridge | $75.38 | $5,000 | 66 | $3.88 | $256.08 | Quarterly |
| TC Energy | $88.83 | $5,000 | 56 | $3.51 | $196.56 | Quarterly |
| Bank of Nova Scotia | $99.68 | $5,000 | 50 | $4.40 | $220 | Quarterly |
| Telus | $16.32 | $5,000 | 306 | $1.67 | $511.02 | Quarterly |
| Total: | $1,183.66 |
