4 High-Yielding Canadian Dividend Stocks to Buy in April

Given their high dividend yields and stable cash flows, these four Canadian stocks are an excellent means to earn passive income.

| More on:
Various Canadian dollars in gray pants pocket

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

Investing in high-yielding dividend stocks is a convenient and most accessible means to earn passive income in this low-interest environment. Further, investors could also benefit from stock appreciation. Here are four Canadian companies that are fundamentally strong and pay dividends at a healthier yield of over 6%.


My first pick would be Keyera (TSX:KEY), a midstream energy infrastructure company, which services oil and gas producers in Western Canada. The company generates around 70% of its cash flows from fee-for-service and take-or-pay contracts, providing financial stability. Supported by these steady cash flows, Keyera has increased its dividends at an annualized rate of 7% since 2008.

Meanwhile, Keyera pays monthly dividends of $0.16 per share, representing a forward dividend yield of 7.4%. Amid the recovery in demand and economic expansion, oil demand could rise, driving its earnings and cash flows. Further, the company has planned to construct the KAPS pipeline system over the next three years at an estimated cost of $1.3 billion, providing a long-term growth potential. Its financial position also looks strong, with its liquidity standing at $1.2 billion. So, the company’s dividends are safe.


Enbridge (TSX:ENB)(NYSE:ENB), which has paid dividends for the last 66 years, is my second pick. It earns around 98% of its adjusted EBITDA from regulated assets and long-term contracts, delivering stable cash flows. These stable cash flows have allowed the company to raise its dividends for 26 consecutive years at a compound annual growth rate (CAGR) of 10%. The company’s management has announced dividends of $3.34 per share for this year, representing a forward dividend yield of 7.2%.

Meanwhile, the company is progressing with around $16 billion secured growth projects, with $10 billion worth of projects expected to put into service this year. These investments could drive the company’s DCF per share growth of 5-7% through 2023. With liquidity of $13 billion, the company’s financial position also looks healthy. So, Enbridge could be an excellent buy for income-seeking investors.

Pembina Pipeline

My third pick would be Pembina Pipeline (TSX:PPL)(NYSE:PBA), which had delivered impressive numbers over the previous 10 years, with its adjusted EBITDA per share and ACF per share growing at 12.2% and 9.8%, respectively. The company earns above 90% of its adjusted EBITDA from fee-based or take-or-pay contracts, which delivers predictable and expected cash flows. Supported by these stable cash flows, the company has raised its dividends at a CAGR of 4.9% over the last 10 years.

Meanwhile, Pembina Pipeline currently pays monthly dividends of $0.21 per share, with a forward dividend yield of 6.8%. This year, the company expects to make a capital investment of $785 million. Along with these investments, the recovery in the energy sector could boost its financials. The management expects its adjusted EBITDA to come in the range of $3.2-$3.4 billion. I’m therefore bullish on Pembina Pipeline.

Pizza Pizza

My final pick would be Pizza Pizza Royalty (TSX:PZA). Due to its highly franchised business model, the company fared better than its peers during the pandemic. Further, the introduction of contactless pick-up and delivery transactions has resonated well with its customers, offsetting some of the declines in dine-in sales.

Meanwhile, the company’s investment in expanding its digital channels could also boost its sales even in the post-pandemic world. Further, the wide-scale distribution of vaccines could prompt governments to lift restrictions, allowing the company to operate its restaurants at full capacity, driving its earnings and cash flows.

The company is therefore well positioned to continue paying its dividends. Pizza Pizza currently pays monthly dividends of $0.055 per share, representing a forward dividend yield of 6.2%.

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.

The Motley Fool owns shares of and recommends Enbridge. The Motley Fool owns shares of PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends KEYERA CORP and PEMBINA PIPELINE CORPORATION. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Dividend Stocks

energy oil gas
Dividend Stocks

2 High-Yield Energy Stocks to Buy as Recession Approaches

Energy stocks such as TC Energy and Canadian Natural Resources allow investors to generate income even in recessionary times.

Read more »

green power renewable energy
Dividend Stocks

3 Top Dividend Stocks to Drive Your Passive Income

These three high-yielding, safe dividend stocks could boost your passive income.

Read more »

protect, safe, trust
Dividend Stocks

TFSA Wealth: How to Earn $363 in Monthly Passive Income for Life

Canadian investors can harness the power of the TFSA to generate steady tax-free passive income for decades.

Read more »

Canadian Dollars
Dividend Stocks

TFSA Millionaire: How to Turn $40,000 Into $1.2 Million for Retirement

Here's how TFSA investors are using the power of compounding to buy top Canadian dividend stocks to build retirement wealth.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

My 3 Favourite TSX Stocks Right Now

These three TSX stocks are my favourite performers. All have strong dividends, future growth, and historic performance behind them.

Read more »

Dividend Stocks

Passive Income Generator: 1 Dividend Stock Yielding 6.16%

A high-yield energy stock that pays monthly dividends is a reliable passive income generator for investors.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 Cheap Canadian Dividend Stocks to Buy Now for Passive Income

Investors seeking quality passive income can now buy top TSX dividend stocks at cheap prices.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy for Passive Income

While these high-quality dividend stocks are oversold, they are some of the best stocks to buy for passive-income seekers.

Read more »