Blue-chip dividend stocks can allow you to earn a passive stream of income. There are several firms trading on the TSX that pay investors a dividend. But only a handful of those stocks needs to be a part of your dividend portfolio.
You want to discover firms that generate earnings across business cycles. Further, these profits and money flows should ideally move higher over time, allowing firms to extend dividends annually.
I even have shortlisted five such fundamentally strong blue-chip TSX stocks that may allow you to earn $10,000 in annual dividend income.
Enbridge
One among the most important firms in Canada, Enbridge (TSX:ENB), currently offers investors a tasty dividend yield of 6.9%. While Enbridge is a component of the extremely cyclical energy sector, it has managed to extend dividends by 10% annually since 1995, which is sort of remarkable.
Enbridge has an investment-grade balance sheet, and its money flows are backed by long-term contracts, that are indexed to inflation. The energy giant will proceed to speculate in capital expenditures, allowing it to expand its asset base and increase dividends in the longer term.
Within the last 20 years, ENB stock has returned 1,000% to investors.
Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) pays investors annual dividends of $4.12 per share, indicating a forward yield of 6%. Unlike bank stocks within the U.S., BNS and its Canadian peers are rather more conservative. This approach has allowed BNS to keep up payouts, even through the financial crash of 2009 and the COVID-19 pandemic.
The present environment of rising rates of interest may allow BNS to extend profit margins and offset tepid demand for consumer, corporate, and mortgage loans.
Valued at nine times forward earnings, BNS stock is sort of low cost, given its enviable dividend payout and robust balance sheet.
TransAlta Renewables
One among the most important clean energy stocks on the TSX, TransAlta Renewables (TSX:RNW) offers you a dividend yield of 8.2%. It develops, owns, and operates renewable power generation facilities in Canada, the USA, and Australia. It owns 26 wind facilities, 13 hydro facilities, eight natural gas facilities, two solar facilities, a natural gas pipeline, and a battery storage project that enables it to generate 2,968 megawatts of capability.
Priced at a reduction of 16.5% in comparison with consensus price goal estimates, RNW stock can return 25% to shareholders after accounting for its dividend.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Enbridge | $52.56 | 614 | $0.8875 | $543 | Quarterly |
| Bank of Nova Scotia | $68.77 | 469 | $1.03 | $483 | Quarterly |
| TransAlta Renewables | $11.60 | 2,781 | $0.078 | $217 | Monthly |
| Brookfield Renewable | $36.43 | 885 | $0.46 | $407 | Quarterly |
| Brookfield Infrastructure | $45.34 | 711 | $0.52 | $370 | Quarterly |
Brookfield Renewable
One other clean energy company, Brookfield Renewable (TSX:BEP.UN) has already returned 1,840% to shareholders within the last 20 years. Trading 37% below all-time highs, BEP stock currently has a juicy yield of 5.2%.
Equipped with power-generating facilities in North and South America, Europe, China, and India, BEP generates power through wind, solar, hydro, and even biomass sources. Its current portfolio has an installed capability of 21 megawatts, which is predicted to triple within the upcoming decade, making it a top stock to own straight away.
Brookfield Infrastructure
The ultimate stock on my list is Brookfield Infrastructure (TSX:BIP.UN), which is a recession-resistant company and one which enjoys pricing power. BIP stock has a dividend yield of 4.6% and stays attractive to the income-seeking investor.
The infra behemoth owns and operates toll roads, utilities, data centres, and midstream businesses globally. This diversified base of money flows enables BIP to keep up and increase dividends to shareholders consistently.
The Silly takeaway
Given a mean yield of 6.2%, you should have to speculate a complete of $161,290 distributed equally within the five TSX stocks to earn $10,000 in annual dividend income. Principally, an investment of $32,258 within the five dividend stocks will help investors generate $2,500 in quarterly dividends or $10,000 in annual dividends.
The post Here’s How Much to Invest for $10,000 in Dividends Each 12 months appeared first on The Motley Idiot Canada.
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* Percentages as of 11/29/22
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More reading
- 2 Canadian Dividend Stocks Iâll Be Buying Hand Over Fist in March 2023
- Recent TFSA Investors: 2 Top TSX Stocks to Create a Self-Directed Retirement Fund
- TFSA: 2 Top TSX Dividend Stocks for Your $6,500 Contribution Room
- 2 Stocks I’d Buy Before the Next Bull Market Kicks Off
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Idiot contributor Aditya Raghunath has positions in Brookfield Renewable Partners, Enbridge, and TransAlta Renewables. The Motley Idiot recommends Bank Of Nova Scotia, Brookfield Infrastructure Partners, Brookfield Renewable Partners, and Enbridge. The Motley Idiot has a disclosure policy.