Investing $10,000 in dividend-paying stocks can provide regular cash payouts, making them a compelling option for generating passive income. However, choosing the right dividend stock requires a closer examination of the underlying business. One should consider fundamentally strong stocks with a solid track record of rewarding shareholders. Moreover, add companies with the ability to sustain and grow those payments as earnings rise.
Canadian companies with solid balance sheets, consistent profitability, and sustainable payout ratios stand out in this regard. These are the firms that not only distribute dividends today but also offer confidence that those payouts will continue well into the future.
Within this backdrop, here is a dividend stock that can help you generate a growing passive income stream for years. Moreover, this Canadian stock offers stability and visibility over future payouts, and maintains a sustainable yield, making it an attractive option for income investors.
A top passive income stock
Investors seeking worry-free passive income may consider Emera (TSX:EMA) stock. The company operates a high-quality portfolio of regulated electric and natural gas utilities, along with complementary energy assets. Because nearly all of Emeraâs adjusted net income stems from regulated operations, its earnings and cash flow tend to be steady and predictable, resulting in a long history of dividend growth.
In September, Emera raised its dividend by 1%, marking the 19th straight year it has delivered an annual increase. Its growing payouts reflect the resilience of the companyâs assets and its ability to generate steady earnings and cash flow.
Currently, Emera distributes a quarterly dividend of $0.733 per share, providing investors with a sustainable yield of approximately 4.3%. For those seeking steady, low-risk income backed by regulated utilities, Emera remains a compelling option.
Emera to maintain its dividend growth streak
Emera is likely to maintain its long-standing streak of dividend growth. The utilityâs newly outlined capital plan for 2026 through 2030 totals $20 billion, an investment that will meaningfully expand its rate base and, in turn, drive higher earnings and cash flow. With this plan, Emera expects its rate base to grow between 7% and 8%, supporting a projected increase in adjusted earnings per share of 5% to 7%.
The momentum is already visible. Emera is consistently delivering solid earnings. Moreover, in 2025, Emera plans to invest $3.6 billion, and more than $2.6 billion of that capital is already committed to major projects. These include solar and grid reliability upgrades at Tampa Electric, energy storage and transmission work in Nova Scotia, and continued development of gas infrastructure at Peopleâs Gas. Each of these initiatives is designed to attract new customers, meet rising demand, and strengthen the companyâs long-term growth profile.
Florida remains one of Emeraâs key growth markets. The expanding population and strong economic backdrop of the region continue to push up electricity and natural-gas usage, offering a steady tailwind for the companyâs regulated utilities operating there. At the same time, broader shifts in the energy landscape, such as increased electrification, the integration of renewables, and changes in grid architecture, are adding to demand across Emeraâs markets.
With these factors working in its favour and a growing rate base, Emera is aiming for annual dividend increases of 1% to 2%. For income-focused investors seeking stability with steady passive income, Emera is a compelling bet.
Earn $425 per year from Emera stock
Emera is a reliable dividend stock to add to your portfolio for worry-free passive income. Its growing rate base and favorable demand trends will drive future earnings and dividends. If you invest $10,000 in Emera today, the dividends alone could bring in $106.29 every quarter, adding up to about $425 over the course of a year.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| Emera | $68.77 | 145 | $0.733 | $106.29 | Quarterly |
The post Invest $10,000 in This Dividend Stock for $425 in Passive Income appeared first on The Motley Fool Canada.
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* Returns as of November 17th, 2025
More reading
- Retirees: 2 TSX Dividend Stocks to Make Retirement Easier
- Emera Stock Has a Nice Yield, But This Dividend Stock Looks Safer
- 3 Stocks I Like Better Than Fortis for the High Dividend Yield
- 3 Dividend Stocks That Make Your Money Work Harder So You Donât Have to
Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.
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