Income Investors: 6 Great Stocks Yielding at Least 6%

Stocks such as Slate Retail REIT (TSX:SRT), Just Energy Group Inc. (TSX:JE)(NYSE:JE), and Canoe EIT Income Fund (TSX:EIT.UN) offer great yields. Start building your own passive-income empire today!

In today’s world of anemic GIC yields and other income options that are equally pitiful, income investors are being forced into the stock market.

This isn’t necessarily a bad thing. Yes, stocks can be risky. We’ve all heard the stories of dividend cuts or other impactful events. But individual investors can easily mitigate these risks by using diversification. As long as the majority of a portfolio performs as expected, an investor can count on sustainable income for decades to come.

Here are six of Canada’s best dividend stocks, each yielding more than 6%.

Artis Real Estate Investment Trust

Winnipeg-based Artis Real Estate Investment Trust (TSX:AX.UN) is one of Canada’s largest real estate holding companies. Its portfolio consists of retail, office, and industrial property in both Canada and the United States.

The company currently pays a $0.09 per share monthly dividend — good enough for an 8.2% yield. In 2016, Artis generated $1.55 per share in funds from operations, giving it a payout ratio under 70%. Investors can count on the yield.

First National Financial

While fellow mortgage company Home Capital Group melted down, First National Financial Corp. (TSX:FN) only had a momentary blip. Its shares have lost a mere 2.6% in the last month versus a 52% decline for Home Capital.

First National has two major advantages. It’s the go-to lender for thousands of Canadian mortgage brokers who don’t want their clients ending up at a big bank. And it makes steady profits servicing the $100 billion worth of mortgages it has issued over the years.

The company earned $3.27 per share over the last year. It paid out $1.72 per share in dividends. That’s a fantastic payout ratio for a stock yielding 7.4%.

Alaris Royalty

Although Alaris Royalty Corp. (TSX:AD) is struggling a bit today with a couple of partners who are behind on their royalty payments to the company, it still has a bright future ahead of it. There’s something special about a business that can consistently invest its capital and get 12-15% returns in today’s world.

Even without these partners paying a nickel in agreed-upon royalties, Alaris can still afford its 8.1% payout — although it is tight. Investors also must remember that these payments aren’t lost forever. They’re deferred, which means Alaris will get the cash eventually.

Just Energy

Just Energy Group Inc. (TSX:JE)(NYSE:JE) declined some 15% last week on temporarily depressed earnings. But even though results were disappointing, the company still easily generated enough free cash flow to cover its 6.9% dividends.

The company gets a bad rap because of its aggressive sales tactics. I believe investors focus too much on that and not enough on the strengths, which include the ability for commercial clients to lock in their price of electricity and the company’s growth story into other countries.

Canoe EIT Income Fund

The Canoe EIT Income Fund (TSX:EIT.UN) is like having a whole portfolio in one simple stock. It holds dozens of top dividend stocks and then uses various option strategies to really goose the income it collects. The fund currently yields 9.9% and trades at a significant discount to the underlying assets.

Slate Retail REIT

Slate Retail REIT (TSX:SRT.UN) is the perfect way for Canadian investors to hedge against a falling loonie while still getting paid a generous 7.3% yield to wait.

Slate owns grocery-anchored real estate in so-called secondary markets in the United States. These locations offer great cap rates and income in U.S. dollars. If our currency continues to weaken, the yield to Canadian investors will increase without having to do a thing.

The bottom line

Great income isn’t that hard to find. There are dozens of stocks on the Toronto Stock Exchange that yield more than 6%. Pick the best ones and start building your income portfolio today!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nelson Smith owns shares of ARTIS REAL ESTATE INVESTMENT TRUST UNITS.

More on Dividend Stocks

woman retiree on computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

This TSX stock has given investors a dividend increase every year for decades.

Read more »

calculate and analyze stock
Dividend Stocks

8.7% Dividend Yield: Is KP Tissue Stock a Good Buy?

This top TSX stock is certainly one to consider for that dividend yield, but is that dividend safe given the…

Read more »

grow money, wealth build
Dividend Stocks

TELUS Stock Has a Nice Yield, But This Dividend Stock Looks Safer

TELUS stock certainly has a shiny dividend, but the dividend stock simply doesn't look as stable as this other high-yielding…

Read more »

profit rises over time
Dividend Stocks

A Dividend Giant I’d Buy Over TD Stock Right Now

TD stock has long been one of the top dividend stocks for investors to consider, but that's simply no longer…

Read more »

analyze data
Dividend Stocks

Top Financial Sector Stocks for Canadian Investors in 2025

From undervalued to powerfully bullish, quite a few financial stocks might be promising prospects for the coming year.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

3 TFSA Red Flags Every Canadian Investor Should Know

Day trading in a TFSA is a red flag. Hold index funds like the Vanguard S&P 500 Index Fund (TSX:VFV)…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

1 Magnificent Canadian Stock Down 15% to Buy and Hold Forever

Magna stock has had a rough few years, but with shares down 15% in the last year (though it's recently…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

Earn Steady Monthly Income With These 2 Rock-Solid Dividend Stocks

Despite looming economic and geopolitical uncertainties, these two Canadian monthly dividend stocks could help you generate reliable income in 2025…

Read more »