Your portfolio can’t be complete without a few quality dividend stocks. Along with stable passive income, these stocks provide stability to your portfolio. Given their strong cash flows, healthy financial positions, and regular payouts, these companies are less susceptible to market volatilities. With these advantages, if you wish to add dividend stocks to your portfolio, here are the four top Canadian stocks with above 5% yields.
Suncor Energy
Supported by higher commodity prices and increased production, Suncor Energy (TSX: SU)(NYSE: SU) posted an impressive third-quarter performance last week. Its operating profits came in at $1.04 billion compared to a net loss of $338 million in the previous year’s quarter. Its funds from operations rose 126.5% to $2.64 billion. Amid improving cash flows, its management has doubled its quarterly dividend to $0.42 per share, with its forward yield standing at 5.2%.
Meanwhile, the uptrend in Suncor Energy’s financials could continue amid rising oil demand. The company’s increased production, cost-reducing initiatives, lowering of debt levels, and share repurchase program could boost its financials in the coming quarters. So, I believe Suncor Energy is well-equipped to continue paying dividends at a healthier yield.
BCE
I have chosen BCE (TSX: BCE)(NYSE: BCE), one of the three prominent players in the telecom space, as my second pick. The demand for stable and reliable internet service is rising amid growing digitization and remote working and learning culture. Meanwhile, the company is aggressively investing in strengthening its 5G and high-speed broadband services. With its liquidity standing at $5.3 billion, the company is well-equipped to fund its growth initiatives.
Meanwhile, BCE generates solid cash flows, thanks to its growing customer base and a higher percentage of recurring revenue. These stable cash flows have allowed the company to pay dividends at a healthier rate. Currently, it pays a quarterly dividend of $0.875 per share, with its forward yield standing at 5.43%.
NorthWest Healthcare
With its forward yield standing at 5.93%, NorthWest Healthcare Properties REIT (TSX:NWH.UN) would be an excellent buy for income-seeking investors. The company owns and manages high-defensive healthcare properties. Its long-term contracts, government-aided clients, and inflation-indexed rent deliver stable cash flows irrespective of the economic cycle. So, these solid cash flows have allowed the company to pay dividends at a healthier yield.
Meanwhile, NorthWest’s growth prospects look healthy, with $1 billion projects under development. Apart from organic growth, the company also focuses on strategic acquisitions to drive growth. It has acquired over $400 million assets this year while working on closing the Australian Unity Healthcare Property’s deal; that company owns and manages 62 healthcare facilities.
Keyera
My final pick would be Keyera (TSX: KEY), a midstream energy company. Amid solid performance from its gathering and processing segment, its adjusted EBITDA increased by 9.2% in its recently reported third-quarter earnings. The improvement in drilling activities amid rising oil demand drove its plant volumes and utilization rate, increasing its financials.
With oil prices expected to continue trading higher, Keyera has increased its capital spending guidance for this and next year. It now intends to invest up to $490 million this year and $560 million in 2022. The majority of its spending would be on the construction and completion of the KAPS pipeline project. These investments could drive its financials in the coming quarters while allowing it to pay dividends at a healthier rate. Currently, the company pays a monthly dividend of $0.16, with its forward yield standing at 6.3%.
