If you are looking for passive income from Canadian shares, there are enough options. Some of the largest economic sectors in Canada (such as energy, infrastructure, financial data, real estate and staples) pay large dividends to shareholders.
If you want passive income to take in recent decades, concentrate on the company and not on the return
However, not every dividend is the same. Shares with high dividend yields (such as more than 7%) can often be a fall for shareholders. The immediately increased cash return may seem attractive.
However, high-dividend-interest shares are often priced accordingly because they have increased matters, balance or competitive risks. These shares can be good for trade, but they are not often good long -term investments.
A better gamble is buying shares with modest dividend revenues, but you know that the dividend is sustainable. It is even better if that company has a long track record of growing that dividend.
The best companies normally increase their dividend as their income/cash flows rise. You not only get an increasing payment of passive income, but you also get an increasing share price. It is a great double benefit for investors. The best Canadian dividend shares can all worsen their income, share price and dividends at the same time.
If you are looking for a number of high -quality Canadian dividend shares, there are two here to invest in the long term.
A Canadian real estate supply with a safe long -term dividend
Granite Real Estate Investment Trust (TSX: Grt.un) has been one of the best Canadian dividend growth shares in the Reit universe. It has increased its distribution for 14 consecutive years!
Granite is not the fastest growing stock. In the past five years, adjusted funds from the activities have risen by 47% (or an 8% compiled annual growth rate (CAGR)). At that time, its distribution has increased by 15%.
Graniet has a portfolio of high -quality industrial properties in Canada, the US and Europe. It had a number of vacancy problems in 2024 and early 2025, however, those problems started to take off and De Reit actually addressed his guidance after the second quarter.
Granite stock yields 4.35%. De Reit acts today with a large discount on its private market value. Even after rising 14% this year, there is still a good lead in the stock.
In general, this Canadian dividend stock is a bit boring. However, it has a very strong balance and a strong list of tenants with long -term lease contracts. It is a kind of Slaap-Well-AT-Night stock to hold on for a steadily income in the course of the coming years.
This Canadian stock has a lower return, but a large total return
Intact financial (TSX: IFC) is another large long-term Canadian dividend growth shares. It has increased its dividend for 20 consecutive years. In the past 10 years it has increased its dividend by 10% CAGR.
The dividend has not only increased, but the stock has increased by 196% over the past decade. Intact has built up a leading insurance platform throughout Canada. Smart acquisitions have given the scale, efficiency and data for the risk that is effectively insured.
Intact deserves above average return on equity. The net business income per share has risen with a strong CAGR of 10%. The company is also not complete in its growth process. It has new fronts in the UK and a growing specialty insurance company.
Intact shares today yields only 2%. This Canadian share has fallen by 10% over the past six months. It is a high -quality company with a record of composite solid total shareholder returns. It might be an interesting time to get rid of it.
#passive #income #decades #Buy #Canadian #shares #Motley #Fool #Canada