Despite some recent volatility, many stocks on the TSX Index continue to trade near 52-week and all-time highs. It can be challenging to find stocks with good quality businesses, attractive valuations, and substantial dividend yields as well. If you are looking for all of these factors and stocks with dividend yields over 5%, here are three TSX stocks to look at today.
BCE: The largest telecom stock on the TSX
With a market capitalization of $52 billion, BCE (TSX:BCE)(NYSE:BCE) is Canada’s largest telecommunications business. It pays a quarterly dividend of $0.875 per share. At $65 per share, that is equal to a 5.4% dividend yield.
In its most recent third quarter, revenues, adjusted EBITDA and net earnings grew year-over-year by 3.6%, 4.2%, and 9.9%, respectively. Revenues and EBITDA are only a few percent from returning to pre-pandemic levels. The company has been enjoying a strong rebound in its media business with advertising and digital revenues rising. Likewise, BCE has been seeing strong customer additions and growing demand for its 5G network.
While BCE pays a nice dividend, it has a great history of raising its dividend by around 5% every year. Combine dividend growth and inflation-beating capital returns and this is a solid TSX stock for income.
Enbridge: A top TSX infrastructure stock
Enbridge (TSX:ENB)(NYSE:ENB) currently pays one of the most substantial dividend yields you can find on the TSX today. At $50.50 per share, this TSX stock yields 6.6%. It pays a quarterly dividend worth $0.835 per share.
Despite demonstrating fairly consistent operations through the pandemic, Enbridge still has not returned to its pre-pandemic price. It has still failed to enjoy the fast recovery that some of its exploration and production peers have.
Certainly, it has faced some largely negative political and environmental sentiment. Yet, its assets are crucial to the North American economy. Enbridge transports 20% of oil in North America! Its infrastructure is vital. The fewer pipelines that are built mean its assets continue to rise in value.
Like BCE, Enbridge has a strong history of dividend growth. Enbridge brought on a number of significant projects this year, so it should be primed for cash flow and dividend growth ahead.
NorthWest REIT: A global real estate play
Another great dividend-paying value stock on the TSX is NorthWest Healthcare Properties REIT (TSX:NWH.UN). It provides crucial real estate infrastructure for the healthcare sector across the globe. It pays a $0.06667 distribution per unit every month. Despite this stock hitting a new 52-week high at $13.80 per unit, it still yields a 5.9% dividend.
NorthWest owns a high-quality portfolio of hospitals, life science centres, and medical office properties. These properties have long leases backed by highly credit-worthy tenants. Likewise, over three-quarters of its rents are inflation-indexed. When global inflation rises (as it’s doing right now), Northwest can expect solid rental rate growth.
Northwest has been transitioning to an asset management model. This has translated into a more efficient capital structure. Eventually, this TSX stock should start producing steady cash flow per share growth going forward. For a high dividend yield and inflation-plus capital growth, this is a great TSX value stock to own today.