4 Big Dividend-Paying Stocks for 2023

Given their solid underlying businesses and dividend yields of over 6%, these four dividend stocks are tremendous buys in this volatile environment.

| More on:

Although the Canadian equity markets have made a bright start to 2023, rising interest rates, high inflation, and geopolitical tensions are causes of concern. So, given the uncertain economic outlook, it is prudent to lock in a stable passive income by investing in high-yielding dividend stocks.


Despite the volatility, Enbridge posted strong performance in 2022, as its results came in at the top end of its guidance. The company placed around $4 billion of projects into service and sanctioned projects worth $8 billion. Also, demand growth and higher utilization rates drove its financials, with the company’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) growing by 10.7% to $15.5 billion. Distributable cash flows (DCF) grew by 10% to $11 billion.

Amid solid cash flows, Enbridge raised its quarterly dividend by 3.2% to $0.8875/share, marking the 28th consecutive year of a dividend hike. Its yield for the next 12 months stands at a juicy 6.69%. Meanwhile, the company is advancing with around $18 billion of growth and expansion projects, which could boost its financials in the coming quarters. Meanwhile, Enbridge’s management has provided optimistic 2023 guidance, with the midpoint of its EBITDA guidance pointing toward 4.5% growth from 2022 levels. So, I believe Enbridge’s payouts are safe.

NorthWest Healthcare Properties REIT

The rising interest rates have dampened investors’ interest in REITs (real estate investment trusts). Amid the weakness, NorthWest Healthcare Properties REIT (TSX:NWH.UN) has lost around 32% of its stock value compared to its 52-week high. The steep correction has dragged its valuation down to attractive levels, with its price-to-book multiple standing at 0.9.

Meanwhile, NorthWest Healthcare owns and operates healthcare properties across multiple countries. Given its defensive and diversified portfolio, the company enjoys healthy occupancy and collection rates irrespective of the economic outlook. Besides, its long-term lease agreements, government-backed clients and inflation-indexed rent make its cash flows stable and predictable. Amid the recent pullback, the company’s dividend yield for the next 12 months has increased to 8.27%, making it an attractive buy.

Pizza Pizza Royalty

With a dividend yield of 6.06%, Pizza Pizza Royalty (TSX:PZA) would be my third pick. Given its highly franchised business model, the company’s cash flows are stable compared to its peers. Since the franchisor has relatively low fixed costs, it enjoys higher margins. The company collects royalties based on sales. So, rising prices won’t impact its financials.

Pizza Pizza Royalty is focused on opening new restaurants, renovating old restaurants, launching on-trend products, and innovative marketing campaigns to drive growth. These growth initiatives could boost its financials, thus allowing the company to pay dividends at a healthier yield. The pizza franchisor rewards its shareholders with a monthly dividend of $0.07/share. Its valuation also looks cheap, with its NTM (next 12 months) price-to-earnings standing at 15.4.


Telecommunication companies enjoy healthy cash flows due to their recurring revenue streams, thus allowing them to pay dividends at a higher rate. So, I have chosen BCE (TSX:BCE) as my final pick. The company raised its quarterly dividend by 5.2% earlier this month, marking the 15th consecutive year of over a 5% dividend hike. As of the February 14th closing price, the company’s forward yield stands at a juicy 6.33%.

Meanwhile, BCE continues to make capital investments, expanding its broadband and 5G infrastructure. The company hopes to add 650,000 broadband connections this year while increasing the reach of its 5G and 5G+ services. Supported by these growth initiatives, the telecom’s management expects its free cash flows to grow by 2–10% this year, making its payouts safe. 

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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Happy diverse people together in the park
Dividend Stocks

Gen Z Investors: How to Make $2.8 Million Before Retirement

Gen Z investors have one thing to their advantage: time. Invest wisely and practically any investment could turn into millions.

Read more »

A plant grows from coins.
Dividend Stocks

The 2 Top Monthly Dividend Stocks for March 2023

These are the top two monthly dividend stocks you can buy in Canada in March 2023.

Read more »

Canadian Dollars
Dividend Stocks

Got $6,500? Earn $48/Month Tax-Free Passive Income

High-dividend-paying Canadian stocks include Diversified Royalty. Let's see how a TFSA investment of $6,500 can help you earn $48 in…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Need $100? The Best Dividend Stocks for Monthly Income

Here are two of the best monthly dividend stocks you can buy in Canada right now for passive income.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

TFSA Investors: Make $100 Per Month With This TSX Dividend Stock

This top TSX dividend stock could help you earn $100/month in tax-free, passive income.

Read more »

Wireless technology
Dividend Stocks

2 TSX Stocks I’d Buy With a Tax Refund

If you have a tax refund coming your way, these two TSX stocks could provide you with stellar long-term income…

Read more »

man window buildings
Dividend Stocks

How to Invest in Retail Stocks When Everyone’s Talking About a Recession

Canadian retail stocks like grocery stores provide stable performance. If you like more yield, you can seek an entry point…

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

The 3 Industrial Stocks That Keep Canada’s Economy Going

Three industrial stocks with solid fundamentals are safer options in the current market environment and should add stability to your…

Read more »