3 Great Canadian Dividend Stocks for Passive Income

A protracted monitor document of dividend development is a key think about figuring out the perfect shares to purchase for passive revenue.
Fortis (TSX:FTS)(NYSE:FTS) has raised the dividend in every of the previous 47 years and is offering nice dividend-growth steering. In the Q2 2021 earnings report, Fortis stated its five-year capital program, now as much as $19.6 billion, is progressing as deliberate. The firm expects to extend the speed base throughout its utility belongings by about $10 billion from 2020 to 2025. The ensuing bounce in income and money stream ought to help common annual dividend hikes of 6%. (*3*) might see the timeline prolonged, as new tasks get added to the event program.
Fortis trades close to $57.50 per share on the time of writing and gives a 3.5% dividend yield.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) is a frontrunner within the Canadian oil and fuel trade with all kinds of belongings that features oil sands, typical heavy oil, gentle oil, offshore oil, pure fuel, and fuel liquids.
The firm owns 100% of most of its operations, so CNRL doesn’t have to barter with a accomplice when it desires to maneuver capital to different alternatives. This flexibility helps CNRL get the perfect return potential when commodity markets transfer in beneficial instructions. Natural fuel costs, for instance, held up nicely final yr whereas oil took a beating.
CNRL enjoys a robust stability sheet and is producing vital additional money at present oil and fuel costs. The strong market circumstances ought to stay in place for the following few years, as a rebound in gasoline demand bumps up towards a drastic discount in exploration funding that occurred prior to now yr.
The board raised the dividend by 11% for 2022, marking the twenty first consecutive yr of dividend hikes. An analogous improve is probably going in 2022 given the robust money stream the corporate is having fun with. (*3*) have an opportunity to purchase the inventory on a dip proper now. CNRL trades for near $40 per share in comparison with $46 earlier this yr. At the present worth, buyers can choose up a 4.7% dividend yield.
TC Energy
TC Energy (TSX:TRP)(NYSE:TRP) owns $100 billion in belongings in Canada, the United States, and Mexico. The companies embody pure fuel pipelines, pure fuel storage, energy technology, and oil pipelines. TC Energy’s operations have carried out nicely over the previous yr, and the corporate is engaged on $21 billion in tasks to drive natural development.
The power infrastructure sector is ripe for consolidation. With a market capitalization of practically $60 billion, TC Energy has the dimensions to do strategic offers. It spent US$13 billion in 2016 to purchase Texas-based Columbia Pipeline Group, so the corporate isn’t afraid to go huge when it finds the suitable alternative.
TC Energy has elevated the dividend yearly for the previous twenty years and is offering dividend-growth steering of 5-7% per yr. The inventory appears to be like undervalued on the present worth of $59.50 per share and gives a 5.8% dividend yield.
The backside line
Fortis, CNRL, and TC Energy are all high dividend shares to purchase for a portfolio targeted on passive revenue. If you solely select one, I believe TC Energy is the perfect choose at present. The inventory most likely has probably the most upside potential over the following 12 months and gives the perfect yield.

This article represents the opinion of the author, who could disagree with the “official” suggestion place of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one in every of our personal — helps us all assume critically about investing and make choices that assist us change into smarter, happier, and richer, so we typically publish articles that might not be according to suggestions, rankings or different content material.

The Motley Fool recommends FORTIS INC. Fool contributor Andrew Walker owns shares of Fortis, Canadian Natural Resources, and TC Energy.


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