While many investors focus on momentum and growth in the market, dividend stocks have more impressive long-term returns. Additionally, companies that produce consistent (and growing) dividends tend to produce much more steady income and cushion against the effects of market volatility, rewarding investors for their confidence in a business.

By building a portfolio of excellent dividend yield stocks in the Canadian market, you can create a source of passive income to live off. Here are three of the top Canadian dividend stocks investors may want to consider loading up on now that we've officially turned the calendar on 2024.

Fortis

Canada-based Fortis (TSX:FTS) is an electric and gas utility holding company with a presence in the U.S., Canada, and the Caribbean. The company's primary businesses include power generation, natural gas distribution, and electric transmission.

Fortis's business is very capital-intensive and requires the company to spend billions of dollars to expand its network and drive revenues. The company needs to build its infrastructure to grow its revenue. For this, it needs to rely on debt. Therefore, a rate cut by the Bank of Canada in the next few months will allow Fortis to invest more in its business.

Fortis's third-quarter (Q3) net income surged roughly 2% from the previous year, while the company's net income surged 6.6%, indicating positive margin expansion and the benefits of the company's continued focus on efficiency. So long as the company continues to increase its rate base and cash flow, I think the company's planned dividend growth of between 4-6% is more than doable.

Dream Industrial REIT

Dream Industrial REIT (TSX:DIR.UN) is an open-ended real estate investment trust (REIT) that generates income for investors from real estate assets. The REIT holds 338 industrial properties totalling 71.9 million square feet in prime locations across Canada, Europe, and the United States, with most of its revenue derived from Canada.

Dream Industrial REIT focuses on maintaining high-quality assets on its portfolio and a strong balance sheet to deliver strong and consistent returns for its unitholders. The trust's primary strategy is to build out its asset portfolio near city centers and increase occupancy rates of its existing sites to enhance returns. The company has shown the ability to produce strong rental income growth in these areas, which has led to the relatively consistent share price growth investors can see above.

This past quarter, Dream Industrial REIT produced 7.1% growth in net rental income year over year while seeing its cash flow grow by a similar amount. This trust's 5.7% annual dividend yield is among the best in this space. Thus, given my bullish stance on industrial real estate overall, this stock remains a top pick of mine moving forward.

Suncor Energy

Alberta-based Suncor Energy (TSX:SU) remains among my top picks for investors seeking exposure to the Canadian energy sector. The company's focus is on producing synthetic crude oil from Canada's oil sands. From exploration to development, production, marketing, and distribution, Suncor is a fully integrated energy behemoth that investors looking for exposure on the production end of the spectrum may want to consider.

Again, I think it's important to highlight Suncor's integrated business model as its key differentiating factor. This is a company that manages most of the supply chain, from energy production to distribution, capturing the greatest upside possible from the supply end of the spectrum.

Suncor has done a great job of paying down debt on its balance sheet to improve its various financial metrics. I think that as the company continues to reduce expenses and increase efficiency, its cash flow growth and balance sheet improvement should drive share price appreciation over time. It's just math.