Investors planning to start a passive income stream could consider investing in dividend stocks. Notably, several Canadian companies are known for consistently rewarding their shareholders with higher dividend payments over decades, making them the best dividend stocks for income investors. These companies have fundamentally strong businesses and a growing earnings base that support their payouts. With this backdrop, let's explore three Canadian stocks to buy now for long-term passive income.

Dividend stock #1

Canadian energy stocks have a long history of increasing their dividends, making them a viable option for generating passive income. In the energy sector, Canadian Natural Resources (TSX:CNQ) stands out for its ability to grow its dividend consistently at a higher rate.

For instance, this oil and gas producer hiked its dividend at an average annualized rate (CAGR) of 21% in the last 24 years.

In the future, the company's diversified portfolio of long-life, low-decline production assets is likely to generate solid earnings that will support its dividend payouts. Further, its low reserve replacement costs, operating efficiency, and less capital-intensive projects will cushion its bottom line and dividends, making it one of the best stocks for passive income investors.

CNQ offers an attractive yield of 4.1% based on its closing price of $51.47 on October 10.

Dividend stock #2

Canadian utility stocks are known for their reliable dividend payments and growth history. Thanks to their resilient business model and steady cash flows from regulated operations, these companies consistently generate earnings that support quarterly distributions. Among the best dividend stocks in the utility sector, investors can rely on Canadian Utilities (TSX:CU) for stellar dividend growth.

Canadian Utilities increased its dividend for 52 consecutive years – the longest dividend growth streak by any publicly traded Canadian stock. Its regulated assets generate steady earnings and cash flows in all market conditions, supporting higher payouts.

Looking ahead, Canadian Utilities is focusing on expanding its regulated asset base to further enhance its earnings. The company plans to invest between $4.3 and $4.7 billion over the next few years, which will help increase its rate base by 3.5% to 4.3% in the medium term. Furthermore, Canadian Utilities is exploring new growth avenues and optimizing its energy infrastructure investments to accelerate earnings growth and drive future dividend payments.

The company pays a well-covered quarterly dividend of $0.453 per share. Moreover, it offers a high yield of 5.1% based on its closing price of $35.49 on Thursday, October 10.

Dividend stock #3

Similar to energy and utility giants, leading Canadian bank stocks are known for paying dividends for decades. Among the top financial services companies, Bank of Montreal (TSX:BMO) is a top choice for its longest record of dividend payments in Canada.

BMO has been paying dividends for over 195 years, which shows its ability to consistently grow its earnings in all market conditions. Moreover, the Bank of Montreal increased its dividend at a CAGR of 5% in the last one and a half decades.

The financial services giant's diversified income sources, growing presence in solid regional economies, ability to attract customers, stable credit performance, and strong balance sheet help it generate steady earnings, which support higher dividend payouts.

Bank of Montreal expects to grow its earnings at a CAGR of 7–10% in the medium term, which will help it to grow its dividends at a healthy pace in the coming years. Currently, it offers a reliable yield of 4.9%.