It is not often that extremely high-quality TSX dividend stocks trade with dividend yields over 6%. The stock market has gotten spooked by fast-rising interest rates, and dividend stocks have fallen.
Yet many of these high-quality stocks are operating well fundamentally. If you take a long-term approach, now may be the perfect time to buy the dip and lock in some attractive dividend yields. Here are four top TSX stocks with dividends trading over 6% right now.
A top utility stock for dividends
Algonquin Power and Utilities (TSX: AQN) is a great stock for Canadians looking for exposure to utilities and the renewable power trend. This Oakville, Ontario-based company has $17.7 billion worth of electric, natural gas, water, and renewable assets across North America, South America, and Europe.
Since 2017, this company has grown adjusted net earnings per share by an 11.1% compounded annual growth rate. In that time, it has increased its dividend rate annually by 9.4% on average. Right now, it is implementing a $12.4 billion five-year capital plan that could support upwards of 7-9% annual adjusted earnings-per-share growth ahead.
Algonquin stock is down 22% this year, and it trades with a high 6.95% dividend yield. Its five-year average dividend yield is closer to 4.35%. It looks like a bargain at only 13 times price to earnings (P/E).
An essential energy infrastructure stock
Energy security is likely to be a crucial matter in North America and Europe for several years ahead. That is why Enbridge (TSX: ENB) continues to be an attractive dividend stock. Its energy infrastructure network moves 30% of North American crude oil and 20% of gas consumed in the U.S.
98% of Enbridge’s assets are contracted and 80% have inflation hedges. That means it captures very reliable cash flows that support its dividends.
This dividend stock has fallen 10% in the past month. Investors can earn a rich 6.89% dividend yield. It trades for 16.5 times earnings, which is below its five-year P/E average of 18.1.
A top TSX telecom stock
With a market cap of $38 billion, BCE (TSX: BCE) is Canada’s largest telecommunications stock. Data, cellular coverage, and internet are essential services that Canadian individuals and businesses can’t do without.
Given the limited competition in Canada, BCE has a very strong competitive moat. The company is nearing the completion of a 5G and fibre optic infrastructure build-out plan, and shareholders should enjoy elevated free cash flow returns afterwards.
Its stock is down nearly 20% in 2022. Its P/E ratio of 17 is aligned with its five-year average, representing fair value. Yet with a 6.6% dividend yield, investors can earn an attractive, low-risk, passive-income stream and some modest capital upside from here.
A real estate stock for a monthly dividend
Dream Industrial REIT (TSX: DIR.UN) stock presents an attractive combination of value and income. It owns 257 industrial properties worth over $6 billion in Canada, Europe, and the United States. These are well-located, high-quality assets. This real estate investment trust has seen very high demand from tenants due to near-shoring/re-shoring, e-commerce, and elevated inventory trends.
Dream has seen double-digit rental rate growth and mid-teens funds from operation-per-unit growth this year. Yet its stock is down nearly 39% this year.
Investors can collect a 6.65% dividend yield that is paid out monthly right now. At a 36% discount to its net asset value, this is one of the cheapest industrial real estate stocks you can buy today.
