Maximize Your Passive Income: Two Canadian Stocks You Need to Know About

Shares of these two fundamentally strong Canadian companies can help you start a worry-free passive-income stream. 

Kickstart a Worry-Free Passive Income Stream with These Two Rock-Solid Canadian Stocks 

Investors seeking steady passive income should consider dividend-paying companies. Among these, several fundamentally strong Canadian companies consistently reward their shareholders with regular dividend distributions, regardless of market volatility. 

The reliability of their payouts, solid financials, and growing earnings base make these Canadian stocks dependable investments for earning worry-free passive income. 

Let's explore two solid Canadian stocks that could generate you a significant amount of passive income:- 

FORTIS (TSX:FTS) 

Looking to start a passive-income stream? Consider adding top-quality companies from the Canadian utility sector to your portfolio. Utility stocks are famous for their resilient dividend payments, thanks to their regulated earnings base. In this sector, Fortis (TSX:FTS) stands out for its stellar distribution history and visibility over future payouts. 

Fortis has consistently increased its dividend for over 50 years, supported by a defensive business model, predictable cash flows, and a growing rate base. Since Fortis derives all its earnings from regulated utility businesses, its quarterly payouts are reliably covered. 

Fortis’s strategic focus on expanding its rate base through ongoing investments in regulated utility assets will likely be the key driver for future earnings and dividend growth. Fortis plans to grow its rate base by approximately 6.3% annually through 2028, enabling enhanced shareholder returns via increased dividend payments. The company projects its dividends to grow by 4-6% annually over the same period. 

In summary, Fortis’s outstanding dividend payment history, low-risk business model, expanding rate base, and visibility of future payouts make it an ideal stock for generating passive income. It offers a worry-free yield of about 4.3%.  

Canadian Natural Resources (TSX:CNQ) 

For reliable stocks that generate passive income, consider leading Canadian energy companies known for their dependable dividend payments and growth potential. One such company is Canadian Natural Resources (TSX:CNQ), renowned for its robust dividend payments and growth, offering solid long-term growth potential for investors. 

Canadian Natural Resources has an impressive track record of increasing its dividends, having done so for 24 years at a compound annual growth rate (CAGR) of 21%. The resilience and high growth of its payouts reflect the company’s commitment to rewarding shareholders with higher cash returns, making it an attractive option for investors seeking steady income. 

At current levels, Canadian Natural Resources offers a decent dividend yield of 4.4%. Beyond its attractive dividend, the company has delivered solid capital gains, with its stock surging over 272% in five years, delivering an above-average return. 

Canadian Natural Resource's diversified and long-life asset base, high-value reserves, and low maintenance capital requirements will likely drive its earnings and cash flows. Additionally, the company’s disciplined capital-allocation strategy and strong balance sheet will further support its growth initiatives and future dividend payments. 

You Can Invest in these rock-solid Canadian companies to start your journey towards a worry-free passive income stream today!