Passive income has become increasingly valuable in today’s uncertain macroeconomic environment, providing financial stability while helping investors preserve their purchasing power amid persistent inflation. Reinvesting this income can further enhance long-term returns by harnessing the power of compounding. One of the most effective ways to generate reliable passive income is by investing in companies with resilient business models, stable cash flows, and a consistent track record of paying dividends. Such companies can also add stability and resilience to an investment portfolio.
Against this backdrop, here are three top TSX stocks that could be strong choices for investors seeking stable, reliable passive income.
Source: Getty Images
Fortis
Fortis (TSX: FTS) stands out as a dependable passive-income stock, supported by its highly regulated asset base, low-risk utility operations, and long-standing dividend track record. The company serves approximately 3.5 million customers across Canada, the United States, and the Caribbean, providing essential electricity and natural gas services. With the majority of its assets concentrated in regulated transmission and distribution operations, Fortis generates relatively stable financial results across economic and market cycles. This resilience has enabled the company to increase its dividend for 52 consecutive years. Its quarterly dividend of $0.64 per share currently translates into a forward yield of 3.4%.
Looking ahead, rising electricity and natural gas demand should continue to support Fortis’s long-term growth. The company is expanding its regulated asset base through a $28.8 billion five-year capital investment program, expected to increase its rate base at an annualized rate of about 7% to $57.9 billion by 2030. Alongside these investments, ongoing efforts to improve operational efficiency and profitability could further strengthen its financial performance and support future dividend growth. Management expects to increase its dividend by approximately 4% to 6% annually, reinforcing Fortis’s appeal to investors seeking dependable income and long-term stability.
Enbridge
Second on my list is Enbridge (TSX: ENB), a compelling option for income-seeking investors, with 31 consecutive years of dividend growth and a current yield of 5.8%. The company operates an extensive pipeline network that transports oil and natural gas across North America, along with regulated utility assets and renewable energy projects supported by long-term power purchase agreements (PPAs). This diversified and largely contracted business model helps reduce Enbridge’s exposure to commodity price volatility and broader economic fluctuations, supporting predictable cash flows and enabling the company to maintain its dividend for more than seven decades.
Enbridge also has significant opportunities to grow its earnings and cash flows as oil and natural gas production and consumption expand across North America. The company has identified approximately $50 billion in potential growth opportunities and plans to invest $10 billion to $11 billion annually to advance these projects. These investments could strengthen its financial performance and support continued shareholder returns. Management expects to return approximately $40 billion to $45 billion to shareholders over the next five years, further reinforcing the sustainability of its dividend and making Enbridge an attractive choice for long-term income investors.
Bank of Nova Scotia
My final pick is Bank of Nova Scotia (TSX: BNS), which boasts one of the longest dividend-paying records among Canadian companies, having distributed dividends without interruption since 1833. The bank provides a broad range of financial services across multiple markets, generating resilient cash flows that support its long-standing dividend record. Over the past decade, Scotiabank has increased its quarterly dividend at an annualized rate of 4.5% and currently offers an attractive forward yield of 3.5%.
Meanwhile, Scotiabank is reshaping its business strategy by expanding in higher-margin North American markets while reducing exposure to less-profitable, higher-risk Latin American operations. This repositioning could improve the quality and stability of its long-term earnings. A higher interest-rate environment could also support lending profitability by sustaining healthy net interest margins. Additionally, the bank’s 15-million-share repurchase program, equivalent to approximately 1.2% of its outstanding shares, could boost earnings per share and enhance shareholder value. Given its resilient business, strategic repositioning, consistent dividend growth, and attractive yield, Scotiabank remains a compelling option for income-seeking investors.
