High-Yield Dividend Stocks in Canada: Your Path to Passive Income

These three dividend stocks and their ultra-high dividend yields won’t last for long, as shares are poised for a recovery before 2023 is done.

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Dividend stocks with high yields can be a great way to create major passive income. Yet not every high-yield dividend stock is a great buy, of course. It’s not going to help if you buy dividend stocks for their high yields if shares continue to drop lower and lower, after all.

So today I’m going to go over three dividend stocks with high dividend yields that are a great buy on the TSX today. These Canadian dividend stocks offer investors high income, while still remaining safe options for long-term holders.

NorthWest REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) currently holds an ultra-high dividend yield at 10.27% as of writing. That yield has grown higher and higher as shares have fallen lower and lower. This drop comes from being in the real estate sector, where real estate investment trusts (REIT) continue to suffer from inflation and interest rates rising.

NorthWest stock hasn’t been immune, with earnings coming in lower thanks to those higher interest rates and costs. Furthermore, the company continues to expand its operations around the world, which is putting pressure on its bottom line.

Even so, NorthWest stock is still a solid choice for investors. It holds long-term lease agreements that average about 14 years. That’s over a decade of income coming in for investors to consider. So that means its current dividend remains solid. And when the market cools off, it’s likely that shares will recover quickly as well.

Sienna Senior Living

Sienna Senior Living (TSX: SIA) is another top choice among high-yield dividend stocks in Canada. The company has actually become a buy recommendation by many analysts, as the retirement and long-term care operator continues to recover from the pandemic.

During its most recent earnings report, net operating income increased by 9.9% year over year. This included an 11% increase in its retirement segment, as well as a 9.1% increase in its long-term care segment. Average occupancy also increased to 96.8%, with a reduction in staffing cost of 35% year over year. This was helped by a recent workforce reduction, for annual savings of $3 million.

Analysts liked the move, so it’s a great time to get on Sienna stock while it continues going through this recovery. Especially with an 8.17% dividend yield to consider.

Fiera Capital

Finally, investors can also consider getting in on the investment industry right now as well. That includes Fiera Capital (TSX: FSZ), which could offer a solid recovery, along with an ultra-high dividend yield of 12.59% as of writing!

On the one hand, shares have dropped lower and quarter after quarter Fiera stock has missed out on earnings. But this comes with the territory of investing in growth and value stocks. Right now is buy time, and soon it will be earnings time to shine.

That’s likely why analysts continue to recommend Fiera stock as a buy at these levels. You can therefore bring in this incredibly high dividend yield with your other dividend stocks, and see shares recover quite soon. That’s if analysts are correct in their future assumptions.

Fool contributor Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends Fiera Capital and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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