3 TSX Stocks With High Dividend Yields

No matter where the market moves, earn solid passive income through these high-yield dividend stocks.

| More on:
Increasing yield

Image source: Getty Images

Regardless of where the market moves, investors can generate reliable cash from high-yield dividend stocks to supplement their income. While I admit that the current macro environment and uncertainty could keep you away from investing, keeping idle cash amid an inflationary environment is not doing any good to you. 

So, if you seek reliable income, no matter where the market goes, consider investing in these three TSX stocks with high yields. 

NorthWest Healthcare Properties REIT

As REITs (real estate investment trusts) have high payout ratios, they are a solid investment for investors eyeing reliable income and high yield. Among REITs, I am bullish about NorthWest Healthcare (TSX:NWH.UN) due to its high yield, solid track record of dividend payments, and defensive portfolio of healthcare-based real estate assets.

NorthWest’s payouts are supported through its high-quality tenants, who are backed by government funding. Moreover, NorthWest benefits from its long lease expiry term (about 14.1 years), which adds visibility over future cash flows and dividend payments. Also, its occupancy remains high (97.1%), while approximately 82% of its rents are inflation indexed. 

Overall, the resiliency of its business, high payout ratio (95%), and an attractive yield of 6.2% make NorthWest Healthcare a solid investment. Moreover, its geographically diversified assets, robust development pipeline, acquisitions, and expansion in the U.S. market provide a solid foundation for future growth. 

Enbridge

With a dividend-growth history of 27 years and a high yield of 6%, Enbridge (TSX:ENB)(NYSE:ENB) is a must-have dividend stock. Further, its strong DCF (distributable cash flow) per share and diverse cash flow streams (Enbridge has 40 cash flow streams) indicate that its payouts are well covered. 

Enbridge not only paid but also raised its dividend amid the COVID-19 pandemic when most energy companies announced a cut during the pandemic.

Enbridge’s solid mix of conventional and renewable assets and contractual arrangements bodes well for dividend payments. Further, its inflation-protected earnings and solid secure capital program are likely to drive its future DCF/share and dividend payments. 

Also, Enbridge’s strong backlogs, benefits from new projects, and solid long-term energy outlook is likely to support its financials. Enbridge targets a dividend-payout ratio of 60-70% of DCF/share, which is sustainable and well protected. 

Keyera

Keyera (TSX:KEY) is the final stock on this list. Like Enbridge, Keyera has consistently enhanced its shareholders’ returns through dividend growth amid all market conditions. Its fee-for-service energy infrastructure business produces solid contracted cash flows that comfortably support its payouts and dividend growth. Also, it enables the company to fund its growth projects. 

Looking ahead, Keyera’s solid fee-for-service business, strong balance sheet, ability to grow earnings, and focus on maintaining debt at lower levels augurs well for growth. Keyera’s DCF/share has grown at an annualized rate of 8% since 2008. Thanks to the growing DCF/share, Keyera has increased its dividend at an annualized rate of 7%. 

Keyera offers a high dividend yield of 5.9% at current levels. Further, Keyera’s dividend-payout ratio of 50-70% of DCF is sustainable in the long term. 

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 recommends Enbridge, KEYERA CORP, and NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Dividend Stocks

Modern buildings in business district
Dividend Stocks

3 REITs Offer a Good Mix of Growth Potential and Dividends

The real estate sector in Canada is still heading downwards, and the stocks are mimicking the pattern, so you can…

Read more »

potted green plant grows up in arrow shape
Dividend Stocks

2 of the Best Dividend Stocks to Buy for Growing Passive Income

If you're building a long-term portfolio, these two dividend stocks are some of the best investments to buy for growing…

Read more »

edit Woman calculating figures next to a laptop
Dividend Stocks

Create $500 in Tax-Free Passive Income With $0 in the Bank

Even if you don't have a cent to invest, you can start creating passive income to allow you to create…

Read more »

Dividend Stocks

Passive Income: 2 Dependable Dividend Stocks to Buy Today and Own Forever

Now’s a great time to think about building a passive-income stream. Here are two dividend stocks to have on your…

Read more »

Dividend Stocks

3 Dirt-Cheap TSX Stocks (With +5% Yields) to Buy Right Now

Here are three dirt-cheap TSX stocks that trade with elevated dividend yields and solid growth prospects ahead.

Read more »

sale discount best price
Dividend Stocks

TFSA Investors: 2 Cheap TSX Stocks to Buy Now for Passive Income

Top TSX dividend stocks are now on sale for TFSA investors seeking passive income.

Read more »

exchange traded funds
Dividend Stocks

3 High-Yield Canadian Dividend ETFs to Buy and Hold Forever

These funds provide a all-in-one portfolio of top Canadian dividend stocks.

Read more »

Growth from coins
Dividend Stocks

Want Real Value for Money (+ Growth)? Buy These 2 TSX Stocks

Two TSX stocks with strong fundamentals and growth potential are strong buys if you want real value for money in…

Read more »