2 TSX Dividend Stocks That Put Your Money to Work While You Sleep

Considering how expensive everything is now, it’s safe to say that one of the most important things Canadians think about when they go to sleep is their finances. Rather, it’s the one thing that keeps many Canadians awake at night. Whether you are creating a pension planWhether you’re planning to pay off your mortgage or just go grocery shopping, finances are becoming increasingly stressful these days.

If only there was a way to make money while you sleep. Technically that is not impossible. By investing in and building a high-quality portfolio dividend stocksyou can actually achieve that. While it may be a little slow to earn returns at first, disciplined and intelligent investing can make you a much wealthier individual over time.

The TSX has no shortage of dividend stocks. The real key to success is identifying stocks with the potential to continue paying for decades to come. Today I’ll discuss two dividend stocks that you can consider as a basis for such a portfolio.

Capital power

Capital Power Corp. (TSX:CPX) is a North American energy producer with a market capitalization of $10.6 billion, headquartered in Calgary. The company is mainly engaged in developing, acquiring and operating power plants. It also owns a portfolio of natural gas, coal, solid fuel and renewable energy generation facilities. Most of the company’s revenue comes from the sale of natural gas and the electricity it produces.

At the time of writing, CPX stock is trading at $67.89 per share and paying investors $0.691 per share quarterly, which translates into a dividend yield of 4.1%. Capital Power shares also have a twelve-year track record of dividend growth. The stock expects more growth as the company continues to expand its portfolio in the US.

While not immune to the impact of commodity prices, Capital Power stock appears to be a solid choice for investors looking for long-term positions with reliable dividends.

B.C

BCE Inc. (TSX:BCE) is a $30.3 billion market cap giant in the Canadian telecom sector. It is one of the three major Canadian telecom companies and a pioneer of 5G infrastructure and technology in Canada. BCE accounts for approximately one-third of the market share for wireless carriers in Canada. The company also has a sizeable media segment, which gives it an advantage over its closest peers.

BCE recently cut its dividends to align with more sustainable financial practices. The decision was to help BCE’s overall financial situation, which has been facing headwinds in recent months. Despite the cut, it pays investors $0.4375 per share every quarter, which translates into a dividend yield of 5.4%. At the time of writing, BCE stock is trading at $32.53 per share and I think it’s too attractively priced to ignore.

Silly takeaway

Building a sizable portfolio of income-producing assets, such as dividend stocks, can be an excellent way to… passive income current. A collection of solid and reliable dividend stocks in a tax-free savings account (TFSA) can make things even better. The account’s tax-sheltered status means you don’t have to pay the income from dividends or capital gains as taxes.

By reinvesting the dividends you earn to buy more shares, you can harness the power of compounding to accelerate your capital growth. Capital Power stock and BCE stock can be formidable long-term holdings when building a dividend-oriented portfolio in a self-directed TFSA.