If you’re looking for reliable passive income, consider high-quality TSX dividend stocks. Notably, Canadian companies with a proven record of maintaining or increasing their dividends through different market cycles are dependable investments. These TSX stocks are backed by strong fundamentals, established operations, consistent earnings growth, and a sustainable payout ratio.
With this background, here are three TSX dividend stocks for reliable passive income.
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TC Energy‘s current dividend yield is 3.9%
TC Energy (TSX: TRP) is a reliable dividend stock worth holding for passive income. Its relatively stable operations, predictable cash flow, and long-standing dividend growth history support its investment case.
TC Energy operates natural gas transportation and storage infrastructure while also investing in power generation. A large portion of its earnings comes from regulated businesses and long-term contracts, including take-or-pay agreements with financially strong customers. About 98% of its comparable EBITDA comes from regulated assets or contractual arrangements, helping reduce exposure to commodity-price swings and economic volatility. This enables it to keep paying and increasing dividends.
TC Energy has increased its annual dividend for 26 consecutive years. Further, management expects its dividends to rise by approximately 3% to 5% annually in the years ahead, providing investors with steadily growing passive income.
Looking ahead, TC Energy’s long-life infrastructure assets, supported by long-term commercial arrangements, are likely to drive its financials and dividend payments. TC Energy also has a solid investment pipeline. Its $22 billion secured capital program through 2031 will support its earnings growth and dividend payouts.
TC Energy’s relatively predictable cash flow, a long record of dividend increases, exposure to growing natural gas demand, and a substantial pipeline of secured projects make it a reliable income stock.
Fortis‘s current dividend yield is 3.1%
Fortis (TSX: FTS) is a dependable TSX dividend stock for investors seeking growing passive income. The regulated utility company has raised its annual dividend for 52 straight years, making it one of Canada’s most consistent dividend-growth companies. Management currently targets annual dividend growth of 4% to 6% through 2030, offering visibility into future payouts.
Fortis operates electricity and natural gas transmission and distribution networks throughout North America. Its regulated business model produces relatively stable, predictable cash flow that supports its distributions.
Looking ahead, Fortis will benefit from continued infrastructure investment to expand its rate base. Fortis plans to spend approximately $28.8 billion on capital projects by 2030, increasing its rate base to $57.9 billion. A larger rate base should support higher regulated earnings and help sustain dividend growth.
The company could also benefit from rising electricity demand, U.S. transmission upgrades, renewable-energy investment, grid modernization, and clean-gas infrastructure expansion in British Columbia.
Overall, Fortis’s long dividend-growth record, predictable cash generation, and visibility into future dividend growth make it a reliable passive-income stock.
Canadian Natural Resources‘ current dividend yield is 3.2%
Canadian Natural Resources (TSX: CNQ) is another reliable TSX dividend stock for passive income. The oil and gas company has raised its dividend for 26 consecutive years. Moreover, its dividend increased at a 20% compound annual growth rate over that period. In addition to paying and increasing its dividend, CNQ stock has outperformed the broader market over the past several years and generated solid capital gains for shareholders.
One of Canadian Natural’s key strengths is its portfolio of long-life, low-decline assets, which provide a relatively stable foundation for generating cash flow. The company has also focused on strengthening its balance sheet, making strategic acquisitions, maintaining a large reserve base, and advancing its inventory of undeveloped resources. Together, these factors provide the company with several potential avenues for future growth.
Looking ahead, rising production volumes and low operating costs should drive cash flow. Strong cash generation will enable CNQ to maintain its dividend-growth strategy and reduce debt.
