Canadian Investors: Boost Your Passive Income With These 3 High-Yielding Dividend Stocks

Given their high dividend yields and stable cash flows, these three dividend stocks could be excellent buys right now.

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Although the Canadian equity markets have bounced back strongly from last month’s lows, I expect the volatility to continue in the near term due to the uncertainty over the impact of the rising COVID-19 cases on the economy. So, given the uncertain outlook, investors can buy the following three high-yielding dividend stocks to earn stable passive income and strengthen their portfolios.


Given its excellent track record and high dividend yield, Enbridge (TSX:ENB)(NYSE:ENB) is my first pick. It has paid a dividend for 67 years while raising it uninterrupted for 27 years. It operates 40 diversified assets, with 98% of its adjusted EBITDA generated from regulated or take-or-pay contracts, thus delivering stable cash flows.

Last year, Enbridge had put $10 billion of projects into service. Meanwhile, over the next three years, the company’s management expects to invest around $3-$4 billion annually to expand its core low capital intensity and utility assets, and an additional $2 billion on asset acquisition, the extension of organic projects, and share repurchases. Along with these investments, higher asset utilization rates due to energy demand growth and cost-cutting initiatives could drive the company’s financials in the coming years. So, the management expects its DCF per share to grow at a CAGR of 5-7% through 2024.

Given its healthy growth prospects, liquidity of $10 billion, and attractive forward price-to-earnings multiple of 16.9, Enbridge could be an excellent addition to your portfolio.

NorthWest Healthcare

NorthWest Healthcare Properties REIT (TSX:NWH.UN) could also be a good addition to your portfolio in this volatile environment, given its highly defensive and diversified healthcare portfolio of 192 properties spread across seven countries. Thanks to its long-term agreements and government-supported tenants, the company enjoyed high occupancy and collection rate, even during the pandemic. A significant part of its rent is inflation-indexed, which is encouraging.

NorthWest Healthcare had acquired assets worth $400 million in the first nine months of 2021. It has approximately $1 billion of projects in the development stage while working on acquiring assets in Australia, the United States, and Europe. It had raised around $375 million in 2021, which could support its growth initiatives. Given its stable cash flows and healthy growth prospects, I believe NorthWest Healthcare’s dividend is safe. It currently pays a monthly dividend of $0.0667 per share, with its forward yield standing at an attractive 5.93%.

Algonquin Power & Utilities 

Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) operates low-risk utility assets and highly regulated renewable power-generating facilities, generating stable cash flows. Supported by these robust cash flows, the company has raised its dividend at a CAGR of over 10% for the last 11 years. Currently, its forward dividend yield stands at a healthy 4.74%.

Meanwhile, Algonquin Power & Utilities also focuses on making strategic acquisitions to drive growth. Last week, it completed the acquisition of New York American Water Company for US$608 million. It is also working on acquiring Kentucky Power Company and Kentucky Transmission Company acquisitions. The company plans to invest around $12.4 billion over the next five years, adding utility and power-generating facilities. So, these investments and acquisitions could increase the company’s rate base at a CAGR of 14.6%. The increase in rate base could boost its cash flows, thus allowing it to continue its dividend growth.

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 recommends Enbridge and NORTHWEST HEALTHCARE PPTYS REIT UNITS. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

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