The year 2022 is expected to be a volatile year for Canadian stocks on the TSX. As a result, it could be a good time to add some passive income to your return profile. Dividend stocks allow you to maintain your financial security through market volatility, providing a regular stream of cash.
You might be able to buy dividend stocks on the cheap and also receive a significant capital return if you are fortunate. Here are three inexpensive TSX stocks for passive income and attractive long-term capital gains.
They're interlisted, meaning you can buy them on the the Canadian TSX, or on the NYSE. Happy cross-border shopping!
Enbridge (TSX:ENB)(NYSE:ENB) is an appealing TSX company with a large upfront dividend yield. It pays an $0.86 quarterly dividend each quarter. That equates to a 6.7 percent payout ratio. If you invested $5,000 in Enbridge stocks, you would receive about $335 in dividends
Enbridge added nearly $10 billion worth of new assets to the grid last year. This should provide a nice boost to net income per share in 2022. Enbridge is refocusing its efforts for the green-energy transition. Natural gas transmission and distribution, as well as renewable power and alternative fuel infrastructure, are the primary areas of investment for new investments
The market does not appear to recognize its flexibility in adapting to a more environmentally friendly future. As a result, investors can acquire this stock at a very reasonable price today. Enbridge stock appears to be a good buy and hold for the next several years based on mid-to-high single-digit dividend growth and improved optimism.
Brookfield Renewable Partners (TSX: BEP.UN) (NYSE: BEP)
You won't find a TSX company better positioned than Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) when it comes to the energy transition. It's one of the world's biggest pure-play renewable power companies. Brookfield Renewable Energy is a multinational energy company with operations around the world. It owns a large portfolio of hydro, wind, solar, battery, and distributed generation assets throughout the world. Brookfield intends to expand its portfolio more than twice during the decade.
The price of this TSX stock has decreased by roughly 30% over the past year. The substantial drop presents a great opportunity to purchase a high-quality renewable company at a fair price. It's only listed on the Toronto Stock Exchange with an enterprise value/EBITDA ratio of 15. Given the prospect for significant future growth, this appears to be a very attractive valuation entry point.
Similarly, Brookfield stock pays a 3.7% dividend yield. Brookfield's dividend has been growing at roughly 5% per year for many years now. For a stock with a strong long-term growth tailwind and a decent dividend, Brookfield stock looks like a good passive-income investment today.