Shares throughout the TSX got here roaring again final 12 months after a disappointing efficiency in 2022. 

Excessive-growth tech shares led the way in which when it comes to media protection. The big quantity of progress shares that delivered market-crushing returns in 2023 garnered most of the information headlines. 

As a progress investor myself, I’m as blissful as the subsequent inventory picker in regards to the returns in 2023. However after such an extremely risky previous couple of years, what I’d urge buyers to remember is that there’s nothing mistaken with a boring investing technique. Chasing the next-hottest multi-bagger may lead to constantly getting in on the prime and promoting at inopportune occasions. 

Constructing a stream of passive earnings

There’s by no means a foul time to personal a gradual stream of passive earnings, and that’s very true throughout risky market intervals. Luckily, there’s no scarcity of reliable dividend shares for Canadian buyers to select from on the TSX.

Sluggish-growing dividend shares actually aren’t probably the most thrilling corporations round. Nevertheless, they are often enormous wealth turbines for any investor that’s prepared to be affected person.

With that in thoughts, I’ve reviewed two prime dividend shares that must be on any passive-income investor’s radar in 2024. 

On a year-to-year foundation, the expansion returns of those two shares may not make any headlines. However with reliable, high-yielding dividends, the one factor buyers have to do with these two corporations is reinvest the dividends after which let compound curiosity work its magic.

Inventory #1: Financial institution of Nova Scotia

In relation to passive-income investing, Canadian banks are a wonderful place to start out. The Massive 5 can supply not solely reliable payouts however prime yields, too.

At in the present day’s inventory worth, Financial institution of Nova Scotia’s (TSX:BNS) dividend yields a whopping 6.8%. 

Along with a prime yield, the $75 billion financial institution has been paying out dividends to its shareholders for shut to 2 centuries. You received’t discover many different dividend shares with a yield above 6% that additionally personal a payout streak like that.

A part of the rationale for the sky-high dividend is as a result of inventory’s decline over the previous two years. Shares have struggled since early 2022, which has despatched the dividend up. Whereas this excessive yield could also be short-lived, there may very well be a long-term worth play for affected person buyers.

Inventory #2: Brookfield Infrastructure Companions

Just like the banking house, there’s not an entire lot to get enthusiastic about with the utility sector. Nevertheless, when you’re in search of passive earnings and stability, a utility inventory may very well be an ideal match on your portfolio.

The great thing about utility shares is their dependability. Volatility tends to be pretty tame compared to different sectors. That’s largely as a result of predictable income streams of utility corporations.

At a market cap of $20 billion, Brookfield Infrastructure Companions (TSX:BIP.UN) is a Canadian utility chief. The corporate additionally boasts a world presence, offering its shareholders with broad diversification within the house.

The corporate’s dividend is at present yielding simply shy of 5%. It will not be on the similar stage as Financial institution of Nova Scotia, however you can’t low cost the soundness that Brookfield Infrastructure Companions can carry to a inventory portfolio. The utility inventory can be no stranger to outperforming the broader market’s returns.