Passive Income: 3 High-Yielding Canadian Dividend Stocks to Buy Now

Looking to boost the passive income your portfolio generates? Here are three of the best high-yield Canadian dividend stocks to buy this week!

| More on:
Watch for the Warning Signs Stock Market Prices Trends 3d Illustration

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

Dividend stocks are some of the most important investments you’ll make. There’s nothing better than finding the top Canadian dividend stocks to buy and having them earn you passive income as they grow in value over time.

As dividend investors, some of the best investments to make are in high-yield stocks. These can offer investors a great opportunity to earn significant passive income. However, high-yield stocks can sometimes have more risk.

When investors are concerned about a company and its ability to pay a dividend, naturally, it will sell off. And as stock sells off, its dividend yield rises.

So you have to be careful and make sure the stock is safe first and foremost. Here are three stocks, though, that you can buy with confidence in the current market environment.

A top blue-chip energy stock for passive income seekers

If you’re a Canadian dividend investor, one of the very first stocks to consider is Enbridge (TSX:ENB)(NYSE:ENB). Enbridge is one of the biggest stocks in Canada, and its business is crucial to the Canadian economy. So it’s understandable why it’s one of the top Canadian dividend stocks to buy, especially when it offers a significant dividend yield like it does today.

Operating at the heart of Canada’s economy Enbridge is one of the most dominant stocks in its industry. It offers investors both dividend and share price growth, something you often have to choose between when buying stocks.

But Enbridge is so big and such a cash cow, it can return a significant amount to investors and still invest in growth. This is why the blue-chip stock is the perfect business to act as a pillar of your portfolio.

It’s a great stock to buy as a long-term investment, and not just for the passive income it can generate. Enbridge is also highly stable. Plus, on top of its impressive dividend, which already yields an impressive 6.75%, you can expect that dividend to grow each year.

A high-yield real estate stock

Another high-quality Canadian stock for dividend investors to consider today is NorthWest Healthcare Properties (TSX:NWH.UN).

NorthWest is another company with safe operations and a high-yield dividend making it one of the top Canadian stocks to buy today. NorthWest is a REIT that owns healthcare properties such as medical office buildings and hospitals in several different countries around the world.

This geographic diversification is key in helping minimize risk. However, the biggest factor that makes NorthWest a safe investment is that roughly 85% of its revenue comes directly or indirectly from government funding.

Essentially much of the only revenue it generates that isn’t funded by governments is from gift shops and coffee stands in the lobbies of these hospitals and medical office buildings.

And because healthcare is one of the most important industries that there is, the stock is as safe as can be. So if you’re looking for a top Canadian dividend stock to buy now, NorthWest currently yields 6.2% and generates passive income for investors monthly.

The top Canadian dividend stock to buy now

Finally, one of the top Canadian dividend stocks for investors to buy now is Boston Pizza Royalties (TSX:BPF.UN).

Boston Pizza is the lowest yield stock on the list, but the one with the most potential, especially over the next few months.

The fund earns a royalty on the sales its restaurants do. So as restaurants can recover over the coming months, Boston Pizza has the potential to see a major increase in revenue, which means a major increase in distributable income.

Currently, it pays out just over half of what it did before the pandemic. So if sales can recover to pre-pandemic levels, Boston Pizza investors could see a nearly doubling of the current dividend which is yielding roughly 5.5%.

And just like NorthWest, Boston Pizza generates passive income for investors monthly. So if you’re looking for a top Canadian dividend stock to buy today, Boston Pizza is one of the best opportunities on the market.

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 Daniel Da Costa owns shares of Enbridge. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Dividend Stocks

Canadian Dollars
Dividend Stocks

Passive-Income Investing: How You Can Churn Out $445/Month for the Rest of 2022

Canadians crushed by inflation should look to make big passive income in 2022 with stocks like Freehold Royalties Ltd. (TSX:FRU)…

Read more »

calculate and analyze stock
Dividend Stocks

2 TSX Stocks to Buy With Dividends Yielding More Than 3%

Are you looking for some great income stocks that can provide growth, too? Here are two stellar TSX stocks to…

Read more »

edit Balloon shaped as a heart
Dividend Stocks

Dividend Lovers: 3 U.S. Stocks You Haven’t Heard About

Don't just stick to Canadian companies for a great dividend, consider these U.S. stocks you probably haven't even heard of.

Read more »

money cash dividends
Dividend Stocks

How to Invest $10,000 Over the Next 5 Years

Those looking to put $10,000 to work in this rather uncertain and volatile market may want to consider these three…

Read more »

TFSA and coins
Dividend Stocks

TFSA Investors: 2 Incredible Deals to Buy in August

Here are two TSX stocks investors can consider for their TFSA contribution this year.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

These 3 TSX Stocks Have Doubled Over 3 Years: Can They Do It Again?

Three TSX stocks whose share prices have doubled in three years are well-positioned to repeat history and reward investors with…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

Smart Buys: 2 Low-Profile Value Stocks With Strong Upside

Two low-profile value stocks with strong upside are smart buys if you’re looking for investments outside the energy sector.

Read more »

Dividend Stocks

TFSA Growth: 3 Safe Dividend Stocks to Turn $30K Into $2.5 Million by Retirement

Here’s how Motley Fool investors can use their TFSA to create wealth for retirement, all from safe TSX dividend stocks.

Read more »