Generating Passive Income with Safe Dividend Stocks in Canada: Enbridge and Fortis

Are you looking for a way to generate passive income without having to lift a finger? Well, look no further! Canadian dividend stocks offer a great opportunity to earn income that is taxed at lower rates than interest income and your job’s income. And the best part is, you don’t have to wish for it – you can make it a reality.

To generate passive income, it’s important to invest in businesses that have reliable earnings or cash flows to support safe dividends. Additionally, it’s crucial to choose stocks with solid businesses that you have confidence in adding positions to during market corrections, which should be viewed as long-term investing opportunities.

Two blue-chip stocks that fit the bill are Enbridge (TSX:ENB) and Fortis (TSX:FTS). Enbridge is a large energy infrastructure stock that has been paying dividends for over 70 years and has increased its dividend for 29 consecutive years. Despite a slower dividend growth rate in recent years, Enbridge’s cash flow is defensive and largely comes from investment-grade customers. With a dividend yield of almost 7.5%, now may be a good time for income investors to consider adding Enbridge to their portfolio.

Fortis, on the other hand, is a regulated utility stock that has increased its dividend for 50 consecutive years, making it a true dividend aristocrat in Canada. With predictable business earnings, Fortis has already forecasted dividend increases of 4 to 6% per year through 2028. Trading at a slight discount and offering a dividend yield of 4.4%, Fortis is another great option for passive income investors.

So, if you’re looking to roll out income without lifting a finger, consider investing in these safe dividend stocks for a reliable source of passive income.