3 Stocks for Passive Income to Buy Now and Hold

In this article, we will discuss the 3 Stocks for Passive Income to Buy Now and Hold

Building a reliable stream of passive income is a long-term goal for many investors—and high-quality dividend-paying stocks on the TSX are a great way to get there. The best dividend stocks share a few key traits: solid financial fundamentals, steady cash flow, a history of rewarding shareholders, and the resilience to thrive through economic ups and downs.

With those criteria in mind, here are three standout TSX stocks worth owning for the long haul if your goal is to collect dependable income year after year.

Canadian Natural Resources (TSX:CNQ)

Canadian Natural Resources (TSX:CNQ) is one of the 3 Stocks for Passive Income to Buy Now and Hold. Canadian Natural Resources is one of Canada’s top energy producers—and also one of the most reliable dividend growth stories on the TSX. The company has increased its dividend at a 21% compound annual growth rate (CAGR) over the past 25 years, an impressive feat that speaks to its long-term discipline and shareholder focus.

Currently yielding about 5.4%, CNQ combines strong payouts with impressive capital appreciation—delivering a nearly 284% return over the past five years. What drives this performance? A well-balanced production portfolio, low-decline and high-margin oil sands assets, and a laser focus on operational efficiency.

Looking ahead, CNQ is well positioned to keep generating strong free cash flow thanks to its low-cost, long-life resource base, increasing production from synthetic crude operations, and a significant portfolio of undeveloped land. Its ability to maintain a low reserve replacement cost while investing opportunistically in growth makes it a long-term income powerhouse.

Also Read: Reliable TSX dividend stocks 2025

Fortis (TSX:FTS)

Fortis (TSX:FTS) is one of the 3 Stocks for Passive Income to Buy Now and Hold. Utility stocks are a staple in income-focused portfolios for a reason: they offer stability and reliable returns, regardless of broader market swings. Fortis, a leading North American utility, fits this profile perfectly. With 51 consecutive years of dividend growth under its belt, Fortis is one of Canada’s most dependable income stocks.

Currently yielding about 3.8%, Fortis generates the majority of its earnings from regulated electricity and natural gas operations, which provide predictable cash flow with minimal volatility. The company’s operations span across Canada, the U.S., and the Caribbean, adding geographic diversification to its low-risk business model.

Looking forward, Fortis is planning to grow its rate base by 6.5% annually through 2029, which will support projected dividend growth of 4% to 6% per year. For conservative investors seeking steady income, Fortis remains a rock-solid choice.

Also Read: Best long term Canadian stocks

Scotiabank (TSX:BNS)

Scotiabank (TSX:BNS) is one of the 3 Stocks for Passive Income to Buy Now and Hold. Canada’s banks are widely regarded as some of the most stable in the world, and Scotiabank stands out as a particularly attractive option for income-seeking investors. With a dividend history dating back to the 1830s, this financial giant has built a legacy of reliability.

Scotiabank currently offers a generous 6% dividend yield, making it one of the highest-yielding major banks in the country. The bank has grown its dividend by an average of 5% annually since 2014, underlining its commitment to returning capital to shareholders.

While the financial sector can be cyclical, Scotiabank maintains a disciplined payout ratio and continues to generate robust earnings. Its international footprint, especially in Latin America, offers additional growth potential over the long run—supporting future income and share appreciation.

Final Thoughts

For investors aiming to build wealth through passive income, Canadian Natural Resources, Fortis, and Scotiabank are three TSX stocks that combine long-term durability with attractive dividend yields. Whether you’re planning for retirement or simply seeking financial freedom, these dividend payers offer a strong foundation for any buy-and-hold income portfolio.