The 5 Best High-Yield TSX Stocks to Buy Right Now

Amid uncertainty and lower interest rates, squeeze out steady and higher yields from the top dividend-paying stocks.

| More on:
Increasing yield

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Amid uncertainty and a lower interest rate environment, it’s prudent to squeeze out steady and higher yields from the top dividend-paying stocks. Dividend-paying stocks are relatively stable and generate resilient cash flows that support future growth and payouts. 

Here are five top Canadian dividend stocks that could continue to boost shareholders’ returns through higher dividend payments. Furthermore, these companies are offering solid annual yields.


Enbridge‘s (TSX:ENB)(NYSE:ENB) long history of dividend payments and high yield make it a top income stock. It has been paying dividends for over 66 years in a row. Also, it raised its dividends by about 10% annually in the last 26 years. 

Enbridge’s solid dividend payments are backed by its diversified cash flow streams and contractual arrangements that drive its distributable cash flows. I believe the recovery in its mainline volumes, continued strength in its core business, and long-term contracts will continue to boost Enbridge’s cash flows and, in turn, its dividend payments. Meanwhile, its $16 billion secured capital program should further support its earnings and cash flows. Despite the near-term challenges, Enbridge remains well positioned to enhance its investors’ returns and offers a high yield of 7.2%. 


Scotiabank (TSX:BNS)(NYSE:BNS) is known for its robust dividend payments. It has been rewarding its shareholders with regular dividend payments since 1833. It has increased dividends at a CAGR of 6% since 2009. Scotiabank’s robust dividend payments are driven by its diversified revenue streams and consistent earnings growth. 

Scotiabank is expected to deliver stellar earnings growth in the coming years, thanks to the economic expansion, an uptick in loans and deposit volumes, and lower provisions. Further, its exposure to the high-growth banking markets and expense management are likely to cushion its earnings and, in turn, its dividend payments. Currently, Scotiabank offers a decent annual dividend yield of 4.6%. 

Canadian Utilities  

Canadian Utilities (TSX:CU) has enhanced its shareholders’ returns through regular and higher dividend payments. Notably, the utility company has raised its dividends for 49 consecutive years, thanks to its high-quality earnings base. 

Its predictable and growing cash flows suggest that its payouts are safe.

I believe Canadian Utilities’s continued investments in regulated and contracted assets are likely to drive its high-quality earnings base and, in turn, its future dividend payments. The company offers a high yield of 5.1% at current price levels.

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) has been paying and increasing its dividends for more than two decades. To be precise, TC Energy has grown its dividends at an average annual rate of 7% for 21 years in a row. Its regulated and contracted assets continue to generate resilient cash flows that support higher payments.

Thanks to its high-quality assets and secured capital program, TC Energy expects its dividends to increase by 5-7% in the future. I believe its low-risk business, growing asset base, multi-billion-dollar secured capital projects, and cost-reduction measures augur well for future earnings growth. Currently, the company offers a solid yield of 5.9%.


Fortis (TSX:FTS)(NYSE:FTS) has raised its dividends for 47 consecutive years, and expects it to increase at a CAGR of 6% in the next five years. Fortis’s solid dividend payments are supported through its rate-regulated and diversified assets that generate robust cash flows.

I believe continued rate base growth is likely to drive Fortis’s future dividends. The company expects its rate base to increase at a CAGR of about 6% over the next five years and increase by $10 billion. Meanwhile, acquisition opportunities, diversification, and business reinvestments are likely to boost its future growth. It offers a decent annual yield of 3.7%. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends BANK OF NOVA SCOTIA and FORTIS INC.

More on Dividend Stocks

Doctor talking to a patient in the corridor of a hospital.
Dividend Stocks

1 U.S. Stock to Buy That Could Make You a Millionaire

Even though tech stocks are usually the go-to growth picks in the US stock markets, there are quite a few…

Read more »

Increasing yield
Dividend Stocks

My 3 Favourite TSX Dividend Stocks Right Now

These dividend stocks have been a favourite for a while, but even more so now that they trade at such…

Read more »

funds, money, nest egg
Dividend Stocks

New Investors: The 2 Best Options To Earn Regular Passive Income!

You can earn high passive income with dividend stocks like the Toronto-Dominion Bank (TSX:TD)(NYSE:TD).

Read more »

Dividend Stocks

This Canadian 6%-Yielder’s On Sale, But Not for Long!

SmartCentres REIT (TSX:SRU.UN) is a wonderful high-yielding REIT that has a higher yield and lower valuation than most its peers.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

This 1 Canadian Dividend Stock Could Help You Earn Over $100 Per Week in Passive Income

This dividend stock won’t disappoint you if you want to earn reliable passive income in Canada -- equivalent to more…

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

TFSA Passive Income: 2 Monthly Dividend Stocks for Canadian Retirees to Buy Now

Retirees seeking tax-free monthly dividends can now buy high-yield stocks at cheap prices for a TFSA focused on passive income.

Read more »

financial freedom sign
Dividend Stocks

3 Selloff Stocks That Could Help Set You Up for Life

Here are three selloff stocks to buy for those who believe that these companies can growth through a rising interest…

Read more »

money cash dividends
Dividend Stocks

Passive Income: Get Over $430 in Dividend Income Every Month

These two top dividend stocks could provide substantial monthly cash flows to supplement your active income.

Read more »