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Dividend-paying stocks can help you earn a regular passive income. However, not all dividend-paying stocks are worth investing in, and only a few have the potential to increase their future dividends and boost shareholders’ returns consistently. So, if you are eyeing a growing passive income stream, consider adding these Canadian Dividend Aristocrats to your portfolio.
TC Energy
With its high-quality asset base,
TC Energy(TSX:TRP)(NYSE:TRP) is among the top income stocks listed on the TSX. Notably, the company has generated an average annual total shareholder return of 12% since 2000, reflecting its regulated and contracted assets that remain immune to the economic cycles. Thanks to its low-risk and high-quality asset base, TC Energy has increased its dividends at a compound annual growth rate (CAGR) of 7% since 2000 and is currently yielding over 5.8%.
Millennials: How You Can Achieve Financial Freedom Image source: Getty Images
Many opportunities are available for millennials today compared to 30 years ago. The advent of the internet provides easy access to information, such that you can learn anything you want from coding to managing your finances. You can also build businesses online for a fraction of the cost versus having a physical office or store.
Every path towards financial freedom requires initial work upfront. One way that can help millennials achieve financial freedom is by building their own dividend stock portfolio.
Low interest rates aren’t helpful
We’re in an environment of ultra-low interest rates. Putting savings in riskless GICs for interest income is nowhere near desirable. The best one-year GIC rate is 1.4% while a five-year one is 2.1%.
The 25 Best Canadian Dividend Stocks for U S Investors kiplinger.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from kiplinger.com Daily Mail and Mail on Sunday newspapers.
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Top dividend stocks can provide predictable and regular income for a lifetime. Moreover, dividend-paying companies can help you accumulate a significant amount of capital in the long run, thanks to their strong fundamentals, ability to grow earnings, and resilient cash flows.
So, if you plan to invest in dividend stocks, take a look at these three Canadian Dividend Aristocrats, which I believe would help you generate a growing income for a lifetime.
Fortis
Shares of the utility giant
Fortis (TSX:FTS)(NYSE:FTS) are a must-have in your income portfolio. It generates its earnings from the rate-regulated utility assets that generate predictable and growing cash flows and support its higher dividend payments.
Canadian Stocks: 3 Core Dividend Aristocrats for Every Investor s Portfolio fool.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.ca Daily Mail and Mail on Sunday newspapers.