3 TSX Dividend Stocks With Lucrative Yields in March 2023

Three dividend stocks with high yields this month are safer options for investors looking for larger payouts.

| More on:

Image source: Getty Images

Investors chase high dividend stocks because the payouts can increase investment profits. Without a doubt, retirees who live off or rely on dividends for sustenance prefer juicy yields. However, not all companies can sustain paying high dividends, especially those vulnerable to interest rate risk.

If you want safer options with lucrative yields, consider the Bank of Nova Scotia (TSX:BNS), Aecon Group (TSX:ARE), and Superior Plus Corp. (TSX:SPB). A Big Five Bank is a no-brainer buy, despite worries over the financial system. Both the construction firm and regulated utility company can thrive despite a challenging environment.

No significant risks

The weakness of the financial sector of late stems from the recent collapse of two American banks, including Silicon Valley Bank. According to Mike Rizvanovic, an analyst at Keefe, Bruyette & Woods, Canadian banks are largely insulated from the mess.

Rizvanovic adds, “Canada’s banking sector does not face significant risks related to its deposit base, which remains “well-diversified across industries.” Moreover, the country’s major banks have lower exposure or lending to the technology industry.

While the bank failures in the U.S. stoke fears, CIBC Capital Markets analyst Paul Holden said, “Liquidity positions across the Canadian banks are strong.” BNS, Canada’s third-largest bank, has been paying dividends since 1832, and the outstanding track record isn’t under threat.

BNS trades at $65.76 per share (+0.69% year to date), while the dividend offer is 6.27%. The $82.3 billion bank pays the highest dividend among the Big Five banks. Its President and CEO, Scott Thomson, said the bank has a rock-solid foundation, a diversified revenue base, many competitive advantages, and opportunities for growth.


Aecon is outperforming the TSX year to date, +36.77% versus +1.05%. At $12.46 per share, you can partake in the 5.64% dividend yield. The $766.3 million company builds projects that cover various construction areas such as civil, industrial, and urban transportation.

In 2022, total revenue increased 18% year over year to $4.7 billion, a new record for Aecon. However, profit declined 38.8% to $30.4 million versus 2021. Nevertheless, management said demand for Aecon’s services across Canada continues to be strong, particularly in smaller- and medium-sized projects,

President and CEO, Jean-Louis Servranckx, said the growing recurring revenue programs, current backlog level, and volume of new awards would support Aecon’s further revenue growth over the next few years.

Resilient propane business

Superior Plus is North America’s leading distributor and marketer of propane and distillates, and related products and services. Its President and CEO, Luc Desjardins, said the business model in the propane distribution businesses is resilient to overcome COVID-19 health measures, rising inflation, and labour costs, including the impact of volatile commodity costs.

In Q4 2022, net earnings ballooned 356.5% to $63 million versus Q4 2021. Adjusted EBITDA increased 28% year over year to a record $182.6 million. Desjardins said the Certarus acquisition would provide Superior Plus with a significant organic growth segment in the low-carbon mobile fuels industry.

At $11.03 per share (-0.72% year to date), the $2.2 billion company pays a fantastic 6.35% dividend.

Counter inflation and rate hikes

Lucrative yields can help investors cope with inflation and combat rate hikes. However, if you’re devoting your portfolio to high-dividend stocks, look at the dividend history of the prospect and its capability to sustain the payout.   

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Bank of Nova Scotia and Superior Plus. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Dividend Stocks

Better Buy for TFSA Passive Income: Telus Stock or TD Bank?

Telus stock and TD stock look cheap today. Is one really oversold?

Read more »

funds, money, nest egg
Dividend Stocks

Income Stocks: A Once-in-a-Decade Chance to Get Rich

As a part of your diversified investment portfolio, solid dividend stocks on sale can help you get rich with growing…

Read more »

Hourglass projecting a dollar sign as shadow
Dividend Stocks

2 Superb TSX Stocks to Buy for Passive Income

All dividend stocks can help you start a passive-income stream, but relatively few offer a healthy combination of yield and…

Read more »

A golden egg in a nest
Dividend Stocks

TFSA Investors: 2 Growth Stocks to Build an Adequate Nest Egg

Two TSX growth stocks are ideal holdings for TFSA investors building a nest egg or retirement wealth.

Read more »

financial freedom sign
Dividend Stocks

How to Easily Make $1 Million in 20 Years

There's trying to time the market, and then there's the easy way of investing if you want to make $1…

Read more »

Dividend Stocks

Top TSX Stocks to Buy to Prepare for a Recession

Here are two TSX stocks to consider that could offer immense portfolio stability in an economic downturn.   

Read more »

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 »

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 »