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Canadian retirees are looking for reliable dividend stocks to generate stable passive income in their TFSA portfolio.
Fortis (TSX: FTS)(NYSE: FTS) Income has all the attributes that investors want in stocks. The company owns utility assets that produce electricity, transmit electricity, and distribute natural gas to businesses and homes. These are essential services that are used regardless of economic conditions and provide a predictable and reliable source of rate-regulated income.
Fortis grows through acquisitions and new developments. The current $ 20 billion capital program is expected to raise its annual rate base by an average of 6% by 2026. As a result, the board will raise the same amount of dividends until at least 2025. This is good guidance for income investors. Those who want to know how much their future payments will increase.
Fortis has increased distribution for 48 consecutive years.This makes it one of the top dividend growth stocks TSX index..
The stock traded at a reasonable 21x following 12-month earnings and currently offers a dividend yield of 3.9%.
Banks achieved that until 2020 and 2021 in a better way than many analysts expected when the pandemic first enforced blockades across Canada and the United States. Home collapse was never a concern, and government support and postponement of payments allowed homeowners and businesses to pay their mortgages in difficult times.
Now that the economy is on track, the government has lifted the ban on dividend increases and share buybacks imposed on Canadian banks and insurance companies. TD has a good track record of dividend growth and utilizes significant surplus cash built to cover potential bad debt losses that have not been realized. As a result, TD shareholders could see a significant increase in payments when TD announces its fourth quarter 2021 financial results on December 2.
Stock prices appear to be 11 times cheaper following 12-month earnings. Investors now have a yield of 3.4% and can wait for dividends to increase after 2022.
BCE (TSX: BCE)(NYSE: BCE) Is a leader in Canada’s telecommunications industry, providing wired and wireless networks that provide Internet, TV and mobile services to millions of customers nationwide. BCE is investing billions of dollars in new infrastructure to give customers access to the broadband they need for work and entertainment.
The company spent $ 2 billion on the 3500MHz spectrum in 2021. This is the foundation of BCE. 5G Expansion. On the wired side, BCE continues to build fiber-to-the-premises programs that connect homes and businesses directly with fiber optic lines.
BCE’s media business was hit last year, but the group is repelling a recovery in advertiser spending across television, radio and digital platforms. In addition, BCE’s partially owned sports team is currently playing in front of a full crowd.
BCE dividends are strong and payments should continue to increase along with free cash flow. Investors who buy stock at the time of writing will get an attractive 5.5% dividend yield.
Top stock earnings for passive income
Fortis, TD, and BCE pay reliable dividends that should continue to grow over the years. Both companies have a strong business to enjoy a wide range of competitive moats. If you are looking for an anchor pick for TFSA focused on passive income, these stocks deserve your radar.
Three Top Passive Income Stocks for Pensioners
https://www.fool.ca/2021/11/18/3-top-passive-income-stocks-for-pensioners/ Three Top Passive Income Stocks for Pensioners