5 Canadian Dividend Stocks With Yields of 5% or More

Here are five of the best dividend stocks Canadian investors can buy to boost their passive income in the current market environment.

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Investing in Canadian dividend stocks is popular among many investors due to the considerable benefits these stocks offer.

First off, for a company to even pay a dividend, it needs to be well established and consistently making a profit. Therefore, many dividend stocks have lower risk than up-and-coming businesses that aren’t yet profitable.

In addition, because these stocks pay some of the profits back to you immediately rather than using all that cash to invest in more growth, Canadians can lower the risk of their investments.

So if you’re a dividend investor looking to give your passive income a significant boost, here are five top Canadian dividend stocks that all offer a yield of 5% or more.

One of the best Canadian dividend stocks you can buy

Some of the safest and most reliable dividend stocks that Canadian investors can buy are in the utility sector, such as a stock like Emera (TSX:EMA).

Emera offers gas and electricity services in many different jurisdictions across North America, including parts of the Caribbean.

Therefore, given that it’s well-diversified, regulated by governments, and essential to the North American economy, Emera is certainly a reliable stock.

It has predictable revenue and cash flow. And on top of offering a current dividend yield of roughly 5.15%, it also offers consistent dividend growth.

A top blue-chip dividend stock for Canadian investors to buy and hold long term

Another worthy dividend stock that Canadian investors can buy to boost their passive income is Enbridge (TSX:ENB), a massive energy infrastructure company.

Enbridge is a massive company with significant competitive advantages and one that’s crucial to the North American economy. Notably, it too has many operating segments, which diversify its operations considerably.

In addition, Enbridge owns many long-life assets and is constantly generating billions in cash flow, making the stock a cash cow and an ideal investment for passive income seekers.

Plus, just like Emera, it too offers consistent dividend growth. And today, you can buy the stock while it trades off its high and offers an incredible yield of more than 7%, making it one of the best Canadian dividend stocks to buy now.

A top Canadian real estate stock

Like energy and utilities, real estate is another industry where Canadian investors can find many high-quality dividend stocks.

These companies are constantly generating tonnes of cash, and while some may reinvest most of that cash in growth, others, like CT REIT (TSX:CRT.UN), return most of their cash back to investors.

CT REIT’s majority owner is Canadian Tire, plus it also receives roughly 90% of its revenue from the major Canadian retailer.

Thus, investors consider CT REIT a highly reliable real estate stock as one of the few retail REITs that saw only minimal impacts from the pandemic.

Besides its stability and attractive yield of more than 5.6%, CT REIT also has a tonne of growth potential and is another stock that’s constantly increasing its distribution each year.

These two royalty companies are made for dividend investors

Plenty of stocks on the market are ideal for Canadian dividend investors. Here are some other stocks essentially made for passive income seekers.

For example, Pizza Pizza Royalty (TSX:PZA) aims to pay out essentially all of the money that it makes each quarter. The stock doesn’t own or operate any restaurants but instead collects a royalty from each location across the country.

This allows Pizza Pizza to have only minimal expenses and pay out nearly all of its earnings each quarter.

Of course, it needs to keep a small margin of safety as the level of sales across the country can fluctuate from quarter to quarter. In general, though, it’s constantly returning all its profits to shareholders and currently offers a yield of roughly 6.3%.

Diversified Royalty (TSX:DIV) is another stock that Canadian dividend investors will want to check out. It has a business model similar to Pizza Pizza’s, but as its name suggests, it’s much more diversified.

In fact, the stock receives royalty payments from seven different businesses. Plus, it pays a current yield of roughly 8.2%.

So if you’re looking for Canadian dividend stocks to boost your passive income, these two royalty stocks are some of the best to consider today.

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 Daniel Da Costa has positions in Enbridge. The Motley Fool recommends Emera and Enbridge. The Motley Fool has a disclosure policy.

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