3 Canadian Value Stocks Paying a 5% Dividend or More

It is no longer easy to find high-yielding dividend stocks that are a good value today. Fortunately, here are three great Canadian stocks yielding 5% or more.

It is getting harder and harder to find dividend stocks that pay an attractive yield these days. Since it is difficult to acquire a decent yield from bonds, many investors have had to look to stocks for their income needs. Consequently, it has driven most good-quality dividend stocks up in value.

If you want to collect a higher-than-average yield, you have to be willing to do some digging. You will have to buy some stocks with a little bit more risk involved. These are generally in less-favourable sectors like energy and real estate. However, if you are prudent, you might still find some gems in the rough. You just have to be prepared to be patient.

A dividend stock set for a post-pandemic recovery

Chartwell Retirement Residences (TSX: CSH.UN) is one such stock you need to be patient with. It is Canada’s largest publicly listed retirement living provider. 90% of its income comes from seniors retirement living and only 10% comes from long-term care. This dividend stock has faced some serious challenges during the COVID-19 pandemic.

Not only did it have to battle the virus to protect its residences, but it has not been able to lease vacant suites due to lockdown rules. However, all of that is starting to change. A large majority of its residents and staff have already been immunized.

As a result, it will greatly benefit from the world re-opening out of the pandemic. There is a significant amount of pent-up demand for its suites. This REIT pays a nice, well-covered dividend just below 5%. Its stock has been having a nice rebound lately, and I expect this will continue as the world normalizes again.

A dividend stock with a stable cash flow stream

Enbridge (TSX: ENB)(NYSE: ENB) is another dividend stock that will benefit out of the pandemic. It is one of North America’s largest transporters of oil liquids and natural gas. I like this company, because it has a very resilient operational platform. It is basically a toll road for the North American energy market. Producers have no choice but to contract with Enbridge. Higher production means strong pipeline volumes.

Enbridge produces stable cash flows that support its 7.3% dividend. Of course, it faces some challenges with its pipeline in Michigan and its Line 3 replacement project. These are risks you have to consider. However, overall, the company is diversified and well managed. It is diversifying its business to participate in the renewable energy transition. As a result, I think this stock can continue to keep producing dividends for many years ahead.

A great value stock that produces ample income

Superior Plus (TSX: SPB) is another energy stock that actually has some pretty attractive growth opportunities. It is a leading distributor of propane in Canada and the United States. It pays a nice 5% dividend that is incredibly well covered by cash flows. However, there is reason to believe this stock will be more than a dividend stock for years to come.

It recently sold a specialty chemicals business that did not align with its propane business. Hence, today its balance sheet is in a great position. It is now poised to focus on propane distribution 100%. It is utilizing its strong operating platform to consolidate other propane distributors. Last year, it acquired $288 million of new tuck-in acquisitions. It has an even larger pipeline in 2021. All in all, this dividend value stock is growing in size, quality, and, most importantly, in earnings.

Fool contributor Robin Brown owns shares of CHARTWELL SENIORS HOUSING RL ESTATE and ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge.

More on Dividend Stocks

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How I’d Structure My $14,000 TFSA for Constant Income

If you have $14,000 saved in your TFSA, here is one easy investment strategy to earn $50 of tax-free monthly…

Read more »

woman looks at iPhone
Dividend Stocks

I’m Not Selling Telus After the 55% Dividend Cut: Here’s Why

Contrary to what the market seems to be saying, Telus Corporation (TSX: T) still has a lot going for it.…

Read more »

monthly calendar with clock
Dividend Stocks

A No-Nonsense 3.7% Dividend Stock That Can Pay Retirees Monthly

This no-nonsense dividend stock has returned more than $3.4 billion to shareholders through dividends since 2013.

Read more »

dreaming of financial success
Dividend Stocks

3 Questions to Ask Before Buying a Dividend Stock

Buying a dividend stock? Here are three questions to help you look beyond the yield, with examples from Enbridge, Fortis…

Read more »

Woman in private jet airplane
Dividend Stocks

Make $100 a Month Tax-Free: How Much to Invest in Diversified Royalty and Where

The TFSA is the ultimate investment account to place your money and earn tax-free income.

Read more »

man in bowtie poses with abacus
Dividend Stocks

Passive Income From Dividends: What Canadians Can Realistically Expect

Here's the actual dividend math the passive income gurus won't show you.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

RRSP, TFSA or Both? A Quick Guide by Income Level

Your RRSP and TFSA are complementing accounts that you can use to shield your income from taxes.

Read more »

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Dividend Stocks

Buying Your First Home? The $8,000 FHSA Deduction Most Renters Miss

An eligible renter's $8,000 FHSA contribution can save $2,400 at a 30% tax rate, with the purchase date guiding investments.

Read more »