3 High-Yield Dividend Stocks That Are No-Brainer Buys

These high-yield dividend stocks have well-covered payouts and a solid dividend payment history.

| More on:
bulb idea thinking

Image source: Getty Images

The market’s trajectory remains uncertain due to persistently high inflation and rising interest rates. However, investors can still earn steady and high yields from top Canadian dividend stocks, regardless of where the market moves. 

While dividends are not guaranteed, investors can diversify their portfolios and invest in stocks with solid payment histories, well-protected payouts, and a growing base of earnings and cash flows. Thankfully, the TSX has several companies that have been consistently paying dividends for years and have well-covered payouts. Here, I’ll discuss three Canadian stocks offering high yields and are reliable bets. 

TC Energy 

Energy infrastructure company TC Energy (TSX:TRP) is a solid stock for investors seeking a high and reliable yield. It owns a high-quality portfolio of regulated and contracted assets that witness high utilization, remain relatively immune to economic conditions, and generate most of its earnings. What stands out is that TC Energy offers an attractive dividend yield of 6.6% (based on its closing price of $56.13 on March 6). 

Thanks to its solid asset base and high demand, TC Energy has enhanced its shareholders’ returns through consistent dividend hikes. For instance, TC Energy has raised its dividend for 23 years. Meanwhile, its dividend increased at a CAGR (compound annual growth rate) of 7% during the same period. 

TC Energy’s utility-like business model, growing regulated and contracted assets base, and $34 billion secured growth projects will likely support its earnings and dividend payments. The company expects to increase its dividend by 3-5% annually, which adds visibility over its future payouts, making it a no-brainer dividend stock. 


Like TC Energy, Enbridge (TSX:ENB) is another large-cap stock to earn steady and high yields. Enbridge transports hydrocarbons and has interests in renewable power generation. Thanks to its diverse business model, contractual arrangements, and inflation-protected EBITDA (earnings before interest, taxes, depreciation, and amortization), the company consistently generates solid distributable cash flows, which comfortably cover its payouts. 

Notably, Enbridge has increased its dividend for 28 years at a CAGR of 10%. Moreover, even amid the pandemic, it paid and raised its dividend when most energy companies announced a payout cut. 

Enbridge stock offers a dividend yield of 6.7%, which is well protected, thanks to its 40 diverse revenue sources, investments in growth projects, and revenue escalators. Also, its investments in conventional and renewable energy assets bode well for growth and will drive future payouts. 

NorthWest Healthcare Properties REIT 

REITs (real estate investment trusts) are famous for their high payout ratios. Within REITs, NorthWest Healthcare (TSX:NWH.UN) is a compelling investment, given its lucrative yield of 8.4%. This REIT owns a high-quality portfolio of diversified healthcare real estate assets. 

Its defensive portfolio is backed by a high-quality tenant base with government support. Moreover, NorthWest benefits from its long-term weighted average lease expiry and high occupancy rate. Notably, NorthWest Healthcare has a lease expiry term of approximately 14 years. Meanwhile, it has an occupancy rate of 97%. Furthermore, most of its rents have protection against inflation, which helps in organic growth.

Its high yield and defensive portfolio make it a solid dividend stock.

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 and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

A worker uses a double monitor computer screen in an office.
Dividend Stocks

2 of the Best Canadian Stocks That Pay Out Monthly

These two Canadian dividend stocks are some of the best to buy, offering yields upwards of 5.4% and returning cash…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Passive-Income Seekers: 4 Safe Dividend Stocks to Own Beyond 2033

Dividend stocks are great, but only if they continue to perform after downturns as well. In the case of these…

Read more »

clock time
Dividend Stocks

How Investors Can Build a $1 Million Portfolio in 12 Years

If you can handle it, you can certainly create a million-dollar portfolio in just 12 years, especially considering this dividend…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

4 Big Dividend-Paying Stocks for 2023

These four stocks all earn strong cash flow and offer attractive dividend yields, making them some of the best to…

Read more »

grow dividends
Dividend Stocks

This 7.5 Percent Dividend Stock Pays Cash Every Month

If you need cash now, this dividend stock is certainly one I would consider that could double in share price…

Read more »

Path to retirement
Dividend Stocks

Need Passive Income? Turn $6,000 Into $106 Every Month

Find the right dividend stock for stable growth and you can turn $6,000 into $106 each month!

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

2 Top Stocks to Supercharge Your TFSA Into a Cash Cow

IA Financial and Brookfield Renewable Partners are great passive income generators for new TFSA investors.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

Invest in This 7.5% Dividend Stock for Passive Income

This dividend stock could provide you with double the amount of annual passive income by investing now instead of at…

Read more »