How to Create Your Own Pension With Canadian Dividend Stocks

According to recent estimates, the average monthly Canada Pension Plan (CPP) and Old Age Security (OAS) benefits total approximately $1,668. While these government benefits help support retirees, they may not fully cover day-to-day expenses amid persistent inflation and rising living costs.

One effective way to supplement retirement income is to invest in high-yield dividend stocks, which offer a reliable stream of passive income and opportunities for capital appreciation over time. Meanwhile, investors can further enhance their return potential by making these investments through their Tax-Free Savings Account (TFSA), thereby earning tax-free dividend income and capital gains.

With that in mind, here are two high-yield Canadian stocks that I believe can help generate reliable passive income for income-focused investors.

Enbridge

Enbridge (TSX:ENB) is an attractive investment for income-seeking investors thanks to its resilient business model, impressive dividend track record, and healthy yield. The energy infrastructure company generates approximately 98% of its earnings from regulated assets and long-term take-or-pay contracts, with about 80% of those earnings protected by inflation-indexed mechanisms. This structure helps insulate its financial performance from commodity price fluctuations and broader economic volatility, thereby supporting stable, predictable cash flows.

Backed by these reliable cash flows, Enbridge has maintained uninterrupted dividend payments for more than seven decades and has also raised its dividend for 31 consecutive years. As of Tuesday’s closing price, the stock offered a forward dividend yield of 5%.

Looking ahead, Enbridge could be well-positioned to benefit from rising oil and natural gas production across North America, which continues to drive demand for its infrastructure network. The company is advancing its $40 billion secured capital program, with projects scheduled to enter service through the end of the decade. These investments are expected to support steady financial growth, with management forecasting annualized growth of approximately 5% in both adjusted earnings per share (EPS) and distributable cash flow per share through 2030.

In addition, Enbridge expects to return $40–$45 billion to shareholders over the next five years through a combination of dividends and share repurchases. Given its dependable cash flows, visible growth pipeline, and attractive yield, I believe Enbridge remains an excellent choice for income-focused investors.

Bank of Nova Scotia

Another dividend stock that can provide a reliable stream of passive income is Bank of Nova Scotia (TSX:BNS). As one of Canada’s largest financial institutions, the bank offers a broad range of banking, wealth management, and capital markets services across multiple countries. This diversified business mix generates stable cash flows and has enabled BNS to pay dividends uninterruptedly since 1833. The stock currently offers an attractive forward dividend yield of 3.8%.

Looking ahead, BNS focuses on enhancing profitability by expanding its higher-return North American operations while streamlining its exposure to select Latin American markets. The bank is also working to optimize capital allocation and improve operational efficiency across its business. As part of this strategy, it has announced plans to acquire the remaining shares of Scotia Group Jamaica Limited that it does not already own in a transaction valued at approximately $0.5 billion, which the bank expects to close by the end of this year.

In addition, BNS continues to return capital to shareholders through its share repurchase program, which authorizes the buyback of up to 15 million shares through April 2027. The bank could also benefit from a relatively elevated interest-rate environment, which supports lending profitability through healthy net interest margins. Given its reliable business model, strong capital position, strategic growth initiatives, and long history of dividend payments, I believe BNS is an attractive option for income-focused investors.

The post How to Create Your Own Pension With Canadian Dividend Stocks appeared first on The Motley Fool Canada.

Should you invest $1,000 in Bank Of Nova Scotia right now?

Before you buy stock in Bank Of Nova Scotia, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Bank Of Nova Scotia wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $16,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 91%* – a market-crushing outperformance compared to 87%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of June 15th, 2026

More reading

• 1 High-Yield Dividend Stock You Can Hold for Decades of Income
• Here’s What Enbridge Stock Could Look Like by the End of 2026
• All it Takes is $5,000 Invested in Each of These 3 Dividend Stocks to Help Generate Nearly $1,100 in Passive Income in 2026
• 5 Canadian Stocks I’d Buy If I Wanted Instant Income
• A Smart Strategy to Use Your TFSA to Effectively Double Your $7,000 Contribution

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Bank of Nova Scotia and Enbridge. The Motley Fool has a disclosure policy.