For many Canadian traders, the actual property sector has lengthy been the go-to for constructing passive earnings. Nevertheless, the equation appears to be shifting in 2025. Excessive rates of interest, tighter lending requirements, and stagnating property values are pushing extra traders to rethink their technique.
However the excellent news is that the TSX nonetheless gives a wide range of engaging alternate options. I’m not speaking about speculative or dangerous progress shares however fairly income-generating machines with constant money flows and engaging yields. As markets keep risky and financial headwinds proceed, these dividend-rich corporations may supply the sort of stability and earnings that actual property traders as soon as relied on. Let’s uncover two such TSX-listed dividend shares which have the potential to redefine passive earnings for the fashionable Canadian investor.
Enbridge inventory
Let’s begin with one of the crucial dependable earnings mills on the TSX, Enbridge (TSX:ENB). This power infrastructure large performs an essential position in transporting oil and pure fuel throughout North America via its in depth community of pipelines and storage services. Presently buying and selling at $63.11 per share, ENB inventory has a market cap of $137.6 billion and gives a sexy annualized dividend yield of practically 6%.
Within the final 12 months, Enbridge inventory is up over 30%, reflecting traders’ rising confidence in its reliable money stream and constant outcomes. In reality, 2024 marked the nineteenth consecutive yr that the corporate met or exceeded monetary steering.
When it comes to numbers, the corporate’s adjusted web revenue for 2024 climbed by 5.1% YoY (yr over yr) to hit $6 billion, and adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) grew 13% to $18.6 billion. This progress was fueled primarily by stable contributions from its current acquisitions, elevated volumes via its pipeline techniques, and higher value management throughout its operations.
Notably, Enbridge just lately accomplished a $19 billion acquisition of three U.S. fuel utilities. It additionally positioned $5 billion price of recent initiatives into service in 2024 and has one other $8 billion within the pipeline with investments starting from fuel transmission to solar energy. Given these stable fundamentals, ENB may very well be an awesome defensive inventory for income-focused traders.
Change Earnings inventory
And talking of constant earnings and upside potential, the subsequent inventory you possibly can contemplate is Change Earnings (TSX:EIF). Based mostly in Winnipeg, EIF runs a mixture of regional airways and specialised manufacturing companies. After rising 7% over the past yr, it at present trades at $49.37 per share with a market cap of $2.5 billion. At this market worth, it gives an annualized dividend yield of 5.4% and pays a month-to-month dividend.
In 2024, the corporate hit file highs throughout the board, with $2.7 billion in income and $628 million in adjusted EBITDA, up 6% and 13%, respectively. This was pushed by robust efficiency in its Aerospace & Aviation section with the assistance of upper passenger volumes, medevac contract wins, and expanded routes with Air Canada.
Past the numbers, EIF is pushing for long-term progress via strategic acquisitions like Canadian North, and focused investments in plane and infrastructure. These strikes may enhance its income whereas serving to you construct a extra diversified and dependable earnings stream for years to come back.
