What sets these TSX stocks apart is the sustainability of their underlying businesses. They typically operate in sectors with stable demand, have a strong competitive position and generate resilient revenues. With disciplined capital allocation and sustainable payout ratios, they can maintain their dividends during challenging periods and grow them steadily.
Against this backdrop, here are three Canadian stocks that can help you generate a growing passive income stream.
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Passive income share #1: Fortis
Fortis (TSX:FTS) is one of the most reliable Canadian dividend stocks to generate passive income that continues to grow. This utility focuses on the transmission and distribution of electricity and generates predictable cash flow under rate-regulated frameworks that help protect revenues from economic volatility.
The company’s predictable, growing cash flow has allowed it to increase its dividend year after year. In November 2025, Fortis increased the payout by 4.1%, marking 52 consecutive years of increases. The stock currently yields around 3.3%, supported by consistent profits with low risk.
Looking ahead, Fortis plans to invest $28.8 billion over five years, primarily in regulated utilities. This disciplined capital allocation is expected to expand the interest base from approximately $42 billion in 2025 to $58 billion in 2030. A higher interest base will boost earnings and support expected annual dividend growth of 4% to 6% over this period.
Furthermore, with rising demand for electricity and a strong balance sheet, Fortis is well positioned to achieve stable revenues, stability and growth.
Passive Income Share #2: Enbridge
Enbridge (TSX:ENB) is an attractive choice for investors looking for a sustainable and growing passive income stream. The energy infrastructure giant has been paying dividends for more than seventy years. Moreover, the country has increased its payout annually since 1995, regardless of economic and commodity cycles.
Enbridge’s payouts are supported by its resilient business model that generates stable earnings and distributable cash flow (DCF) per share. The majority of EBITDA is generated from regulated assets and long-term take-or-pay contracts, limiting exposure to volatile oil and gas prices. Approximately 80% of EBITDA is indexed to inflation, providing a built-in hedge against rising costs. The extensive North American network of pipelines and utilities connects key nodes of supply and demand, ensuring consistently high utilization.
In December, Enbridge increased its quarterly dividend by 3% to $0.97 per share ($3.88 per year), payable beginning March 1, 2026. That equates to a yield of about 5.5% at current prices. With a target payout ratio of 60-70% of DCF and expected single-digit earnings growth, Enbridge appears well-positioned to generate reliable, growing passive income for long-term investors.
Passive Income Share #3: Canadian National Railway
Canadian National Railway (TSX:CNR) is a reliable Canadian dividend stock to generate passive income. It is one of North America’s largest rail operators, operating an extensive network that is integral to the region’s supply chain. It transports essential goods ranging from energy and agricultural products to manufactured and consumer items. This broad reach gives the company a competitive edge and helps soften results during economic slowdowns.
Recently, CNR increased its quarterly dividend by 3%, marking 30 consecutive years of dividend growth. That track record reflects the sustainability of the business model, the resilient earnings figures and the commitment to shareholder returns.
Looking ahead, the company’s diversification across multiple freight categories will likely add stability to its business and support steady earnings growth. Furthermore, a recovery in freight volumes and a focus on improving efficiency bode well for growth and boost payouts.
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