How Splitting $30,000 Across 3 TSX Stocks Could Generate $1,315 in Dividend Income

Building a dividend income portfolio that can pay regular income even in a crisis requires a mix of stocks from different sectors, having different dividend policies and capital allocation strategies. This is because a company’s crisis handling capacity depends on the management’s proactiveness in identifying risks and executing strategies efficiently.

Three TSX stocks that could generate assured dividend income

You can build a diversified dividend income portfolio of high-yield stocks, dividend growth stocks, and a dividend reinvestment plan (DRIP).

SmartCentres REIT for high yield

Among all Canadian REITs, SmartCentres REIT (TSX:SRT.UN) has a high dividend yield of 6.7%. Behind the high yield is its regular and assured 23% rental income from Walmart. Walmart attracts other retailers, and SmartCentres used this strength to diversify its tenant base. It is now converting the land around its stores into city centres.

The REIT has a high leverage, but that is manageable as most of it is used to build commercial offices and apartments and sell them. The sale proceeds are used to repay debt or extend it to build more houses and offices. As the population around its stores increases, the value of retail stores appreciates and helps it command a higher rent.

The REIT has sustained through the 2008 Financial Crisis and the pandemic without dividend cuts. Its dividend payout ratio as a percentage of funds from operations increased to more than 90% in 2023 and 2024 amid a slowdown in house sales and a sharp correction in real estate prices. At such times, SmartCentres REIT paused new developments and only focused on existing ones to maintain liquidity. As real estate prices improved, the REIT lowered its payout ratio to 89.2% in 2025 by selling houses and restarting new projects. Its strong execution shows it can sustain its high yield.

Power Corporation of Canada for dividend and capital growth

Power Corporation of Canada (TSX:POW) is a financial holding company, and its strength is dividend growth. Its two major holdings, Great-West LifeCo and IGM Financial, have been growing dividends significantly as premiums and investments increased. POW also has exposure in private equity and power through Sagard and Power Sustainable. They help generate capital gains.

Power’s diversified financial portfolio and a mix of capital and dividend growth make it ideal to increase your dividend income. However, it does not offer a DRIP.

CT REIT for DRIP compounding

CT REIT (TSX:CRT.UN) is one of the best stocks for a DRIP as it grows its dividend every July by an average rate of 3% and offers an additional 3% shares on the dividend amount reinvested. So, if you reinvest the $100 dividend, you will get DRIP shares worth $103. That is better than the 2% discount most DRIP stocks offer.

CT REIT manages to offer a DRIP because of its arrangement with its parent, Canadian Tire. The REIT doesn’t have to spend on advertising or pay a brokerage to get a tenant. The dividend amount retained through a DRIP allows it to buy and develop new stores for Canadian Tire and get recurring rent. Thus, it can offer a DRIP.

How these TSX Stocks could generate $1,790 in dividend income

When you know what to expect from each stock and optimize its strengths, you can maximize your dividend income. A $10,000 investment in each of the three stocks can buy you 143 shares of POW, 580 shares of CT REIT, and 362 units of SmartCentres REIT. Only CT REIT offers a DRIP, which means the entire 580 shares can be put in a DRIP.

The high yield of SmartCentres will compensate for DRIP compounding. POW’s 3.8% annual dividend yield would not discourage you from investing in it, as the real returns will come from the 7% average annual dividend growth it offers.

A $30,000 investment now can give an annual dividend of $1,602 in 2026, which could grow to $1,790 by 2030 by utilizing its full potential.