There’s never a bad time to think about creating an additional stream of income. Fortunately, the TSX is loaded with high-quality dividend stocks to help Canadians do exactly that.
Whether you’re looking for an ultra-high yield, a dependable payout, or both, there’s at least one Canadian dividend stock for you.
I’ve put together a well-diversified basket of five Canadian dividend stocks. Not only does the basket provide well-rounded exposure to the stock market, but all five dividend stocks are also currently yielding above 4%.
Bank of Nova Scotia
The Canadian banks are an excellent place for a passive-income investor to start. The Big Five not only all pay top yields but also own some of the longest payout streaks you’ll find on the TSX.
With a dividend yield that’s nearing 7%, Bank of Nova Scotia (TSX:BNS) is the highest-yielding of the major Canadian banks. It’s also been paying a dividend to its shareholders for close to 200 consecutive years.
There’s not much for a passive-income investor to dislike about this Canadian bank.
Sun Life
Sticking with the financial space, Sun Life (TSX:SLF) is another trustworthy dividend stock that you don’t need to second guess.
At a dividend yield of 4.5%, Sun Life can’t compete with the likes of Bank of Nova Scotia. However, the stock can provide a portfolio with stability and defensiveness in addition to passive income.
The insurance space is far from an exciting one. But it is reliable.
If you’re looking to limit volatility in your investment portfolio, Sun Life deserves a spot on your watch list.
Telus
I wouldn’t bank on the demand for insurance disappearing anytime soon. The same goes for telecommunication services.
With shares down 15% over the past year, investors have an opportunity to buy Telus (TSX:T) at a discount today. The recent pullback has also shot the dividend yield to above 6%.
It may be a slow turnaround, but there’s no denying the long-term need for telecommunication services.
In addition to a top dividend yield, patient long-term investors may also be in for market-beating returns with shares priced where they are today.
Fortis
When it comes to dependability, utility stocks are not second to many. While telecommunication services could be considered essential, the sector itself does tend to be cyclical. In comparison, the utility space typically sees far less volatility.
There’s not a whole lot to get excited about with a utility stock like Fortis (TSX:FTS). That is unless you’re looking for dependability and passive income.
At today’s stock price, Fortis’s dividend yield is above 4%.
Brookfield Renewable Partners
Last on my list is a renewable energy stock that differs slightly from the other four companies in this basket.
In terms of the dividend yield, Brookfield Renewable Partners (TSX:BEP.UN) is on par with the other four companies, yielding 5% today. Where the renewable energy company separates itself is with its market-beating track record.
The renewable energy space has massive long-term growth potential in front of it. And Brookfield Renewable Partners is a global leader that’s in a prime position to capture that growth.
Even with shares down 30% from all-time highs, the energy stock is still largely outperforming the Canadian stock market’s returns over the past five years. And that’s not even including dividends, either.
