Are You Looking for High-Yield Investments? 3 TSX Stocks That Offer Excellent Payouts

These dividend stocks all offer solid payouts, as well as yields in the five to six percent range. So get them before they recover!

Amy Legate-Wolfe

Author Bio

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband.

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Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 31, 2023 5:30 pm EDT

Canadian investors seeking out high-yield dividend stocks have a lot of great options on the TSX today. So right now, I’m going to go over three of them. The similarities? Each of these dividend stocks offer solid payouts, allowing investors to rest at ease knowing their dividends are safe and solid.

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CT REIT

First up we have CT REIT (TSX: CRT.UN), which offers strong dividend payouts as the real estate investment trust (REIT) behind Canadian Tire. This REIT continued to see strong occupancy even during the pandemic, which holds true even today.

Yet rising interest rates have led to shares dropping with fear fuelling investor reactions. CT REIT is now down 12% in the last year, and currently offers a dividend yield at 5.89% as of writing.

Yet with a payout ratio at 78%, and a debt-to-equity ratio at 75%, the company has plenty of cash on hand to keep dividends both strong, and growing.

Manulife

Another strong option among dividend stocks is Manulife Financial (TSX: MFC). Manulife stock continues to offer investors a diversified portfolio of investments. It provides life insurance and wealth management to groups and individuals, from North America to Asia. And that business continues to grow organically, as well as through major acquisitions.

Shares are actually up 9% in the last year, though it still trades at a valuable 5.1 times earnings as of writing. You can therefore pick up a dividend yield at 5.72% for a great deal. You can also look forward to solid payments.

Manulife stock holds a payout ratio at 27%, with a debt-to-equity ratio at 48% as of writing. So again, plenty of cash to keep that dividend up and running.

Power Corporation of Canada

Finally, we have the Power Corporation of Canada (TSX: POW). Similar to Manulife, it too is a diversified financial services company that provides insurance and wealth management around the world. Similarly, it has been growing through both acquisitions as well as organically for years.

Shares remain down by about 4% in the last year, though have been climbing by 9% year to date. So there’s still time to get in on a deal before it rebounds completely. Meanwhile, it holds a 5.93% dividend yield as well.

As for safety, Power stock is a dividend stock with a 100% payout ratio, and 49.8% debt-to-equity ratio as well. So you’ve got plenty of cash coming your way from this dividend stock.

Bottom line

It’s all well and good to have a high-yield dividend stock. Though if you’re looking for funds that last, then you want to make sure you’re choosing safe dividend stocks. These three offer that in spades, and have proven to do so for decades now. Furthermore, they have plenty of growth available both through acquisitions, as well as through more real estate in the case of CT REIT.

With dividend yields all in the five to six percent range, these are still high yields you can look forward in your passive income portfolio for years to come.