3 Canadian Dividend Stocks to Boost Your Passive Income
Investors seeking to enhance their passive income have a wealth of opportunities in the Canadian market. Those looking specifically for dividend stocks will find certain companies exceptionally positioned for growth. Here, we explore three standout Canadian dividend stocks that not only provide current income but also promise increasing dividends over time.
Thomson Reuters: A Reliable Growth Story
Thomson Reuters (TSX: TRI) stands out as a leader in legal, tax, and compliance software. Its renowned tools such as Westlaw and Checkpoint create consistent revenue streams within professional ecosystems. Despite experiencing a drop in stock price from over $290 in 2025 to approximately $110 in 2026 due to market concerns about AI, Thomson Reuters is effectively utilizing AI to enhance its productivity tools.
- Current dividend yield: Approximately 2.6%
- Dividend growth history: 32 consecutive years
- Five-year dividend growth rate: About 9.4%
- Recent dividend hike: Over 10%
- Payout ratio: Approximately 51% of free cash flow
This combination of a sustainable dividend and a solid growth trajectory positions Thomson Reuters as an appealing choice for investors.
Empire Company: Steady and Resilient
Empire Company (TSX: EMP.A) operates over 1,500 grocery stores across Canada under well-known brands like Sobeys and FreshCo. Its reach extends to pharmacies and fuel locations, providing broad consumer exposure. While Empire’s current dividend yield stands at approximately 1.7%, the company’s consistent dividend increases make it more appealing.
- Consecutive years of dividend increases: 31
- Recent dividend growth rate: About 10.9% over the past five years
- Recent dividend hike: 10% announced in June
Empire serves as a defensive play with stable growth in a sector characterized by necessity. Its capacity to adapt to market demands further solidifies its attractiveness as a dividend stock.
Brookfield Asset Management: The Growth Powerhouse
Investors should also consider Brookfield Asset Management (TSX: BAM), a global alternative asset manager overseeing assets exceeding US$1 trillion. The company manages a diverse portfolio, including infrastructure, real estate, and renewable energy.
- Recent stock price: Approximately $64
- Estimated discount: Over 20% based on analyst evaluations
- Current dividend yield: Roughly 4.3%
- Recent dividend increase: Approximately 15%
Brookfield’s expansive reach allows it to generate stable cash flows backed by long-term contracts. Its recent dividend boost highlights strong earnings growth potential, making it suitable for those seeking both income and asset appreciation.
Conclusion: A Compelling Trio for Passive Income
In summary, these three Canadian dividend stocks provide a mix of yield, resilience, and growth potential. Thomson Reuters demonstrates strong growth while maintaining reliable dividends. Empire Company offers defensive stability, and Brookfield Asset Management combines attractive yields with significant growth opportunities. Together, they present a compelling investment strategy for anyone looking to enhance their passive income.
