2 Top Canadian Dividend Stocks for $1,850 in Annual Passive Income

Passive income has become a must in this uncertain macroeconomic environment, amid persistent inflation and ongoing geopolitical tensions. Passive income provides financial stability and helps investors maintain their lifestyle despite rising prices. Among the many ways to earn passive income, investing in quality dividend stocks is one of the most cost-effective and convenient options.

Against this backdrop, the following two Canadian dividend stocks offer attractive buying opportunities. A $30,000 investment split equally between these two stocks can generate $1,850 in annual passive income. Let’s look at these two stocks in detail.

Enbridge

Enbridge (TSX: ENB) is a diversified energy infrastructure company with more than 200 revenue-generating assets. Its highly contracted business model, coupled with a significant portion of earnings linked to inflation, makes its financial performance relatively resilient to market volatility and commodity price fluctuations. These stable cash flows have enabled the company to pay dividends since 1953 and increase its payouts for 31 consecutive years. Enbridge currently offers a quarterly dividend of $0.97 per share, translating into an attractive forward yield of 5.7%.

Furthermore, Enbridge is expanding its asset base to capitalize on rising demand for energy infrastructure and services, supported by growing oil and natural gas production and consumption across North America. The company is advancing its $41 billion secured capital investment program, with several projects expected to enter service over the coming years. These expansions could strengthen its financial performance, with management targeting annualized growth of 5% in both distributable cash flow per share and earnings per share through 2030. Backed by these growth initiatives and resilient cash flows, Enbridge also expects to return $40–$45 billion to shareholders over the next five years, supporting its ability to sustain and grow dividend payments.

SmartCentres Real Estate Investment Trust

SmartCentres Real Estate Investment Trust (TSX: SRU.UN) is another attractive option for income-seeking investors, backed by its stable cash flows, consistent monthly distributions, and appealing dividend yield. The REIT reported healthy third-quarter operating results earlier this week, with its occupancy rate improving 10 basis points from the prior quarter to 98.2%. Leasing activity also remained strong, with the REIT leasing 104,000 square feet of vacant space during the quarter. Additionally, it renewed 57,000 square feet of expiring leases at an impressive 11.8% rent increase, bringing the proportion of 2026 lease maturities already addressed to 89%. Meanwhile, same-property net operating income (NOI) increased 2.5% year over year.

Reflecting its solid operating performance, SmartCentres reported a 0.4% increase in NOI to $141.8 million. However, funds from operations (FFO) fell 8.5% to $0.54 per unit, mainly due to higher interest expenses and an unfavourable fair value adjustment. Excluding one-time items, adjusted FFO per unit edged down only marginally, from $0.56 to $0.55.

Beyond its current operations, SmartCentres is pursuing portfolio expansion to capitalize on demand for quality retail spaces. The REIT has approximately 0.6 million square feet of projects under construction, alongside another 87 million square feet of development potential across properties at various planning and development stages. These opportunities could support long-term growth and strengthen its cash flow generation. Given its high occupancy, healthy leasing activity, and development pipeline, SmartCentres appears well-positioned to sustain its monthly distributions. It currently pays $0.15 per unit monthly, translating into an attractive forward yield of 6.6%.