Thereâs never a bad time to think about building an additional stream of income — especially with all of the volatility weâve experienced over the past year, which Iâd argue wonât be slowing down just yet. Having a little extra cash on the side could go a long way.
Fortunately, for Canadian investors, the TSX has no shortage of top dividend stocks to choose from. Whether youâre looking for a top yield or a century-long payout streak, or both, thereâs a Canadian dividend stock for you.
Using a TFSA for dividend investing
Once youâve made the decision to invest in a dividend stock, youâll need to decide on the type of savings account to hold that investment in.
The Tax-Free Savings Account (TFSA) is often thought of as a short-term savings vehicle, but thereâs no reason why it canât be used for long-term goals, too.Â
The beauty of the TFSA is that your dividend stocks owned within the account can generate passive income completely tax free. In addition, once youâre ready to withdraw those earnings, thereâs once again no need to pay any tax.Â
And simultaneously while your dividend stocks are earning passive income, thereâs also the possibility that the stocks are also appreciating in value. Thatâs one of the reasons why the TFSA can be an excellent choice for long-term savings goals, too.
With that in mind, here are two top dividend stocks that passive-income investors should have on their watch lists.
Dividend stock #1: Brookfield Infrastructure Partners
Thereâs not a whole lot to get excited about with this slow-growing utility stock. That is, unless you’re looking for a company that can provide an investment portfolio with both dependability and passive income.
At todayâs stock price, Brookfield Infrastructure Partnersâs (TSX:BIP.UN) dividend is yielding close to 5%.
Itâs not only a nearly 5% yield that makes this dividend stock a top buy, though. Itâs the defensiveness that the stock can provide its shareholders.Â
Regardless of the condition of the economy, demand levels for utilities tend to remain fairly stable, making Brookfield Infrastructure Partners an excellent company to hold during uncertain market conditions.
If youâre predicting that these levels of volatility will continue throughout 2023, Brookfield Infrastructure Partners would be a wise addition today.
Dividend stock #2: Sun Life
Speaking of slow-growing dependable companies, Sun Life (TSX:SLF) is another prime example of a stock that you can feel good about owning during uncertain economic periods.
Similar to the utility industry, insurance stocks are far from the most exciting companies on the TSX to own.
The reason why I have Sun Life on my own watch list right now is because of the long-term stability of the insurance industry. I donât expect to see a decline in demand for insurance anytime soon, making a global leader like Sun Life a fantastic long-term hold.
Sun Lifeâs dividend yield of 4.7% today is just about the same as Brookfield Infrastructure Partners.
Itâs not the highest yield you can find on the TSX today, but with the added defensiveness the two stocks can provide, both companies are top picks for passive-income investors.
The post Dividend Stocks With Yields TFSA Investors Should Lock In Now! appeared first on The Motley Fool Canada.
Free Dividend Stock Pick: 7.9% Yield and Monthly Payments
Canadaâs inflation rate has skyrocketed to 6.9%, meaning youâre effectively losing money by investing in a GIC, or worse, leaving your money in a so-called âhigh interestâ savings account.
Thatâs why weâre alerting investors to a high-yield Canadian dividend stock that looks ridiculously cheap right now. Not only does it yield a whopping 7.9%, but it pays monthly!
Hereâs the best part: Weâre giving this dividend pick away for FREE today.
Claim your free dividend stock pick
* Percentages as of 11/29/22
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Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.