Dividend stocks are top investments to earn regular passive income while building long-term wealth. Investors should focus on financially strong companies with stable earnings, healthy cash flows, and a consistent history of paying and increasing dividends. For instance, blue-chip Canadian companies often offer these qualities, making them worth considering for investors looking for a dependable income stream.
Against this background, let’s look at two top Canadian dividend stocks that can help you make steady passive income in all market conditions. More importantly, we’ll focus on how much we need to invest in each stock to earn approximately $1,200 in annual dividend income.
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Top Canadian dividend stock #1: Fortis
Fortis (TSX: FTS) is one of the top dividend stocks to earn worry-free passive income. The utility company generates predictable cash flows from its rate-regulated assets across market conditions, supporting its distributions. Moreover, its focus on electricity transmission and distribution also helps limit its exposure to the volatility associated with power generation.
Fortis recently increased its quarterly dividend by 4%, marking its 53rd consecutive year of annual dividend growth. Fortis also expects to maintain annual dividend increases of 4–6% through 2031, reflecting strong cash flows and management’s confidence in long-term growth prospects.
A major part of this growth strategy is supported by the planned investment of $32.2 billion by 2031, which is expected to increase its rate base to $63.9 billion. The rate base expansion will support higher earnings over time, giving the company more capacity to continue rewarding shareholders through dividend increases.
Looking ahead, growing investment in electricity transmission, grid modernization, and energy infrastructure across North America will support Fortis’ growth. The rising electricity demand, driven by electric vehicles, expanding data centres, and increasing consumption across residential and industrial sectors, also creates opportunities for the company.
Overall, a solid demand environment and its regulated business model position it well for consistent dividend growth, making it a top passive income stock.
Top Canadian dividend stock #2: Enbridge
Enbridge (TSX: ENB) is an attractive option for generating passive income. Its high dividend yield, resilient payouts, and long history of dividend growth across all market conditions make it a top income stock.
Enbridge has a well-diversified revenue stream, with operations spanning liquids pipelines, natural gas infrastructure, gas utilities, and renewable energy. Its diversified business model and high utilization of infrastructure assets support consistent earnings and distributable cash flow (DCF), driving its payouts. Most of Enbridge’s earnings also come from regulated businesses and long-term contracts, including take-or-pay agreements. This operating model helps protect ENB from commodity price fluctuations.
With growing earnings and DCF per share, Enbridge has paid dividends for over 70 years. In addition, it increased its annual dividend for 31 consecutive years. Enbridge projects mid-single-digit growth in its earnings and DCF per share over the medium term, supporting consistent dividend growth.
It distributed approximately $39 billion in dividends over the past five years and plans to return another $40 billion to $45 billion over the next five years. Its solid infrastructure assets and relatively predictable cash flows provide a solid foundation for these planned distributions.
Overall, Enbridge’s appeal as a passive income investment comes from its stable business model, predictable cash flows, commitment to growing dividends, and high yield of 5.8%.
Earn over $1,200/year in passive income
Fortis and Enbridge are top passive-income stocks, supported by consistent dividend growth, relatively resilient cash flows, expanding earnings potential, and payout ratios that indicate the capacity to sustain dividend distributions.
An investment of $13,450 in each company, or $26,900 combined, could generate over $300 in quarterly dividends, or about $1,200 annually.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| Fortis | $84.05 | 160 | $0.665 | $106.40 | Quarterly |
| Enbridge | $66.87 | 200 | $0.97 | $194 | Quarterly |
