Top picks: 3 Canadian dividend stocks for stress-free passive income

There’s certainly plenty for investors to worry about right now. Recession red flags seem to be popping up everywhere, from falling oil and crypto prices to weakening demand for AI stocks and rising consumer and labor market concerns.

That said, certain companies are less exposed to these generally weakening trends. In this piece, I’ll take a closer look at three such Canadian dividend stocks that I think could provide the kind of low-stress dividend income many are looking for over the long term.

Without further ado, let’s dive in!

Agnico Eagle

Let’s start with one stock that may provide ample downside protection, or a market hedge, for those concerned about the above-mentioned risks. Agnico Eagle (TSX:AEM) is a top Canadian gold miner with an absolutely beautiful chart, shown below.

Of course, most of the movement we’ve seen in AEM stock lately has been related to rising gold prices. The price of gold continues to hover around $4,100 per ounce, and I remember wondering if the gold price could ever break through the $2,000 level of over a decade ago.

But here we are, and companies like Agnico Eagle are really raking in the cash flow needed to not only buy back shares, but also significantly increase the dividend. With a current yield of 1% (significantly lower lately due to the massive capital appreciation this stock has seen), I think investors can rest well with this name.

In this market that is the most important thing.

Fortis

Fortis (TSX:FTS) is another top dividend stock that I keep talking about. There are good reasons for this, including but not limited to the company’s 51-year track record of increasing its dividend.

That kind of dividend growth is certainly difficult to achieve in general. However, as one of the major regulated utilities providing both electricity and natural gas to millions of residential and commercial customers, Fortis’ cash flow more than supports its current 3.5% dividend yield and future potential increases.

For investors looking for a company with the underlying growth catalysts (if AI is as big as everyone says it will be, we’re going to need a lot more power) and the ability to keep increasing its dividend by 6-7% for the foreseeable future, Fortis is the choice to consider.

Telus communications

One of Canada’s largest telecommunications giants, Telus communications (TSX:T) is one of my top picks for long-term investors who want to benefit from not only a reasonable dividend yield, but also a dividend yield that is stable and consistent over time.

Now Telus doesn’t have the nicest map of the bunch. In fact, the chart has been pretty ugly lately, pushing the company’s dividend yield to a sky-high 8.9%.

At this level, many in the market appear to doubt the company’s ability to maintain and grow its dividend over time. I’ve seen some data about delinquencies in the telecom sector increasing that I think is driving this story.

That said, in the online world we live in, I don’t see how revenue can possibly decline for telecommunications companies that continue to raise their prices and seemingly have the ability to do so, while offering a service that is relatively cheap compared to other services on the market.

In my opinion, this recent dip is worth buying. The stock offers a yield of almost 9% and it seems worth investing in it now.