The Best Canadian Dividend Stocks for Passive Income

Retirement planWritten by Andrew Walker at The Motley Fool CanadaCanadian pensioners and people saving for retirement are looking out for the very best Canadian dividend shares so as to add to their self-directed portfolios.FortisFortis (TSX:FTS)(NYSE:FTS) has raised its dividend in every of the previous 47 years and intends to spice up the payout by a median of 6% per yr via at the very least 2025. This is nice steerage in an unsure financial state of affairs the place the extent of the post-pandemic development continues to be unknown.Fortis owns $56 billion in utility belongings unfold out throughout Canada, the United States, and the Caribbean. Businesses embrace energy era, electrical transmission, and pure fuel distribution. Revenue from the subsidiaries is essentially regulated, and the character of those important companies means money move tends to be predictable and dependable. That’s why the board is so comfy giving long-term projections for dividend hikes.Fortis is engaged on $19.6 billion in capital initiatives that can considerably enhance the speed base between 2020 and 2025. Additional developments are into account that may very well be added to the present plan or come into play past 2025.Fortis additionally grows via acquisitions. It hasn’t made a significant buy prior to now 5 years, so it wouldn’t be a shock to see Fortis do one other deal quickly. The firm can make the most of low rates of interest and the robust Canadian greenback to make one other transfer within the United States. Fortis lately introduced the hiring of a brand new senior vp of capital markets and enterprise growth. The individual becoming a member of the corporate has a background in funding banking and has offered Fortis with steerage via earlier mergers and acquisitions.The inventory trades close to $58 per share on the time of writing and provides a 3.5% dividend yield.Bank of Nova ScotiaBank of Nova Scotia (TSX:BNS)(NYSE:BNS) has underperformed most of its massive Canadian banking friends this yr, however the inventory ought to catch up in 2022 and past, because the post-pandemic world restoration drives a rebound within the firm’s worldwide operations.Story continuesBank of Nova Scotia has massive investments in Mexico, Peru, Colombia, and Chile. Political uncertainty is at all times a problem in these nations, and the pandemic hit them laborious. However, Bank of Nova Scotia’s operations within the 4 members of the Pacific Alliance commerce bloc are worthwhile and have good potential for long-term development.Bank of Nova Scotia is sitting on a big money hoard it constructed up final yr to make sure it may cowl potential mortgage losses. Extensive authorities assist and mortgage deferrals have helped companies and owners keep away from defaulting on their loans. Some ache is anticipated when help ends, however the financial institution is positioned nicely to soak up the hit.Investors ought to see a beneficiant enhance to the dividend when the Canadian banks get the inexperienced gentle from the federal government to restart distribution hikes. In addition, Bank of Nova Scotia may use the money pile to make strategic acquisitions. In reality, the CEO lately stated they’re evaluating wealth administration alternatives within the United States.The inventory seems engaging on the present share value close to $78 and gives a stable 4.6% dividend yield. Bank of Nova Scotia has paid out dependable dividends for greater than 100 years.The backside line on prime dividend sharesFortis and Bank of Nova Scotia are two of the very best dividend shares within the TSX Index. If you’ve gotten some money to place to work in diversified portfolio centered on passive revenue, these shares should be in your radar.The publish Retirement 101: The Best Canadian Dividend Stocks for Passive Income appeared first on The Motley Fool Canada.5 Canadian Growth Stocks Under $5Limited Time Only: Get 5 of Our Top Growth Stocks for FREE.We are giving freely a FREE copy of our “5 Small-Cap Canadian Growth Stocks Under $5” report. These are 5 Canadian shares that we predict are screaming buys as we speak.Get Your Free Report TodayMore studyingThe Motley Fool recommends BANK OF NOVA SCOTIA and FORTIS INC. Fool contributor Andrew Walker owns shares of Fortis.2021

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