Buy 100 Shares of This Premier Dividend Stock for $183 in Passive Income

It’s easy to assume passive income only works if you already have a huge portfolio, but that mindset often stops people from starting. Even owning 100 shares of the right Canadian dividend stock can create meaningful income over time, especially when dividends grow. The real power comes from reliability and patience. A steady payer that raises its dividend year after year can turn a modest position into something that feels substantial, particularly inside a Tax-Free Savings Account (TFSA), where every dollar of income stays yours.

CU

Canadian Utilities (TSX:CU) is one of the quietest yet most dependable dividend stocks on the TSX. It operates regulated electricity, natural gas, and energy infrastructure assets across Canada, the United States, Australia, and Europe. That regulated model matters because it produces predictable revenue tied to essential services. Over the past year, CU’s share price has been relatively flat to modestly higher, which might not excite momentum investors, but that stability is exactly what long-term income investors look for. While other stocks swing wildly with interest rates or commodity prices, CU tends to move slowly and deliberately.

That steady performance reflects how the market views the dividend stock. CU is rarely treated as a growth story. Instead, it’s priced as a bond-like equity that pays you to wait. During periods when markets are volatile or uncertain, CU often holds its ground better than most dividend stocks. That behaviour helps investors stay invested and focused on income rather than reacting emotionally to short-term price moves.

Into earnings

From an earnings perspective, Canadian Utilities continues to do what it has always done: generate stable cash flow and reinvest it conservatively. In its most recent results, the dividend stock reported steady adjusted earnings, supported by regulated rate base growth and long-term contracted assets. Cost pressures and interest rates have been managed carefully, and management has remained disciplined with capital spending. This consistency allows CU to plan years ahead rather than quarter to quarter, which is a major advantage in the utility space.

Valuation is also part of the appeal. CU trades at a reasonable earnings multiple for a regulated utility, reflecting its low-risk profile rather than aggressive growth expectations. The dividend yield sits around 4.3% at writing, which is attractive without looking stretched. Importantly, the payout is well supported by cash flow, and the dividend stock has not needed to take on excessive risk to maintain it.

Income machine

Where CU really separates itself is its dividend history. Canadian Utilities has increased its dividend for more than 50 consecutive years, making it one of the longest dividend-growth streaks in Canada. That matters for passive income as growing dividends protect your purchasing power over time. If you owned 100 shares a decade ago, your income today would be meaningfully higher without you doing anything. That kind of growth turns a small starting position into a dependable income stream.

For someone focused on passive income, CU checks the boxes that matter most. It operates essential assets, earns regulated returns, maintains a strong balance sheet, and prioritizes dividend growth. You aren’t relying on commodity prices, consumer spending, or economic booms. You’re relying on people continuing to use electricity and natural gas, which is about as predictable as it gets. Over time, reinvesting dividends or simply holding through multiple cycles can compound income in a very real way.

Bottom line

The takeaway is simple. You do not need thousands of shares or a massive portfolio to start building passive income. One hundred shares of a high-quality dividend stock like Canadian Utilities can be the foundation. In fact, here’s what that could bring in annually starting today.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTCU$42.18100$1.83$183.00Quarterly$4,218.00

It may start quietly, but with consistency, dividend growth, and time, that small decision can turn into an income stream that feels far bigger than it ever looked on day one.

The post Buy 100 Shares of This Premier Dividend Stock for $183 in Passive Income appeared first on The Motley Fool Canada.

Should you invest $1,000 in Canadian Utilities Limited right now?

Before you buy stock in Canadian Utilities Limited, consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and Canadian Utilities Limited wasn’t one of them. The 15 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 $21,105.89!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 95%* – a market-crushing outperformance compared to 72%* for the S&P/TSX Composite Index. Don’t miss out on our top 15 list, available when you join Stock Advisor Canada.

See the 15 Stocks #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 November 17th, 2025

More reading

• 3 Stocks Canadians Can Buy and Hold for the Next Decade
• These Dividend Growth Stocks Should Have Totally Impressive Total Returns
• 5 of the Best TSX Dividend Stocks to Buy Under $100
• Canadian Investors: The Best $7,000 TFSA Approach
• My Top Picks: 4 Canadian Dividend Stocks You’ll Want in Your Portfolio

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.