4 Canadian Dividend Stocks With Yields of 6% and Above

These Canadian companies are offering a high dividend yield of 6% and above.

Increasing yield

Image source: Getty Images

Dividend stocks enhance the overall returns of shareholders and add stability to one’s portfolio. While stocks that offer higher dividends entice income-seeking investors, it is important to consider their dividend yield. A higher dividend yield significantly reduces an investor’s payback period and enhances returns.

Here, we’ll focus on four such Canadian companies offering a high dividend yield of 6% and above. Furthermore, these companies have solid earnings and cash flows, have regularly paid and increased dividends, while their payouts are safe and sustainable.


Speaking of high-yielding dividend stocks, Enbridge (TSX:ENB)(NYSE:ENB) comes to mind first. This Canadian energy giant has consistently paid dividends for more than 66 years while raising the same at a compound annual growth rate (CAGR) of 10% in the last 26 years, the highest among its peers. It offers an attractive yield of 6.7% at current price levels.

Enbridge’s robust dividend payouts are backed by its low-risk utility-like business and high-quality contracted assets that generate steady cash flows. I expect the company’s diverse cash flow streams, contractual framework, and favourable energy outlook to continue to drive higher dividend payments. Further, Enbridge’s strong secured capital growth program, recovery in mainline volumes, growth opportunities in the gas and renewable power business are likely to boost its earnings and position it well hike its future dividends.

Pembina Pipeline

Pembina Pipeline (TSX:PPL)(NYSE:PBA) stock is another solid bet in the energy space that offers a high yield of 6.3%. This Canadian dividend stock is a must-have in your passive-income portfolio, as it has consistently rewarded its shareholders with monthly dividend payouts and distributed over $10.1 billion in dividends since its inception. Notably, Pembina Pipeline has increased its dividend annually by 5.18% in the last decade.

Looking ahead, I believe Pembina’s future dividends are safe, thanks to its highly contracted business that generates robust fee-based cash flows. 

I believe the improvement in energy demand, higher volumes, increased pricing, and operating leverage will continue to support its earnings growth. Further, a solid backlog of growth projects, exposure to diverse commodities, and newly secured projects could accelerate its growth and boost future dividends.

NorthWest Healthcare 

NorthWest Healthcare (TSX:NWH.UN) is another excellent stock that pays a monthly dividend and offers a juicy yield of 6.2%. Notably, NorthWest has a low-risk business, with most of its tenants being government-backed. Moreover, a significant portion of its rent is inflation-indexed, which is encouraging. 

I believe the company’s diversified healthcare real estate assets and long lease expiry term will likely add stability to its cash flows and support dividend payouts. Moreover, its expansion in the high-growth markets, strategic acquisitions, and strong balance sheet augur well for future growth and are likely to support its future payouts.

Pizza Pizza Royalty

Investors could consider adding Pizza Pizza Royalty (TSX:PZA) stock for its solid dividend yield. The quick-service restaurant company offers monthly payouts to its shareholders. Furthermore, at current price levels, Pizza Pizza’s dividend yield stands at 6.0%, which is attractive.

The expectation of normalization in its operations and recovery in consumer demand could significantly boost Pizza Pizza’s financial and operating performance and support dividend payouts. I believe recovery in traffic growth, network expansion, strong delivery sales, and focus on delivery promotions to boost its overall financials and dividend payments.

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 and PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS and PEMBINA PIPELINE CORPORATION.

More on Dividend Stocks

Woman has an idea
Dividend Stocks

3 No-Brainer Best Dividend Stocks in Canada to Buy With $500 Right Now

Are you craving more cash flow? $500 in one of these best dividend stocks in Canada might deliver a slice…

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

5 Stocks Whose Dividends Just Keep Growing

Stocks like Enbridge and Fortis are growing their dividends for decades, and returning higher cash to their shareholders.

Read more »

Dividend Stocks

2 Stocks I’m Loading Up On in 2024

Restaurant Brands International (TSX:QSR) and another stock I'm pretty close to buying right here, right now.

Read more »

protect, safe, trust
Dividend Stocks

RRSP Investors: 2 Superior Dividend Stocks for Optimal Returns

Superior dividend stocks like the Canadian National Railway (TSX:CNR) can add income power to your portfolio.

Read more »

Increasing yield
Dividend Stocks

TFSA Passive Income: 2 High-Yield Stocks to Buy Before They Bounce

These top TSX dividend-growth stocks look cheap today and offer high yields.

Read more »

Portrait of woman having fun in the street.
Dividend Stocks

Why I Can’t Stop Buying Shares of This Magnificent High-Yield Dividend Stock in My TFSA

This dividend stock continues to be a top winner, even with returns falling the last few years. We're nearing some…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Investors: 1 Cheap Dividend Stock That Could Soar in 2025

This dividend-growth stock now trades at a discounted price and offers a 7% yield.

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

1 Dividend Stock Down 13% to Buy Right Now

Are you looking for a buy-the-dip opportunity? This dividend stock is down 13% and is a buy right now before…

Read more »