Do you want to invest in high-yield dividend stocks without needing a large sum of money upfront? It’s entirely possible with some of the hidden gems on the TSX, where you can find stocks yielding high dividends that you can buy for well less than $100 per share. Such stocks could be perfect for those looking to maximize their returns without breaking the bank, allowing you to grow your portfolio steadily over the long term.
In this article, I’ll highlight two such TSX dividend stocks that have yields above 7% and can be bought right now for $100 or less.
TC Energy stock
TC Energy (TSX:TRP) is the first TSX dividend stock in my list with attractive dividends that you can buy now. This Calgary-headquartered company operates a large network of natural gas and liquid pipelines across North America. It currently has a market cap of $54.5 billion as its stock trades at $52.36 per share after rising 12.4% in the last seven months.
TRP distributes its dividend payouts every quarter and offers an impressive 7.2% annualized dividend yield at the current market price. Interestingly, the company has raised its dividends for 24 consecutive years and expects to maintain annual dividend growth of 3-5% in the future.
In the March quarter, TC Energy’s revenue climbed by 8% YoY (year over year) to $4.2 billion as its NGTL System set a new daily delivery record. The company’s liquids pipelines segment saw a 28% YoY increase in comparable EBITDA (earnings before interest, taxes, depreciation, and amortization) with the help of strong demand and 96% operational reliability of its Keystone Pipeline System. As a result, TC Energy’s adjusted quarterly EBITDA margin expanded to 72.8% last quarter from 70.6% a year ago.
TC Energy plans to spin off its liquids pipelines business in the future to unlock further value by allowing the new entity to pursue targeted growth initiatives independently. Overall, its long-term growth outlook remains bright as the company continues to see stable demand for its services with a focus on asset optimization and project execution.
BCE stock
BCE (TSX:BCE) is another reliable, high-yield dividend stock you can buy on the Toronto Stock Exchange now. The shares of this Verdun-based telecom giant currently trade at $46.44 per share with a market cap of $42.5 billion after sliding by 11% year to date.
On the positive side, these declines in its share prices have made BCE’s annualized dividend yield look even more appealing, which currently stands at around 8.5%. This company has consistently increased dividends for 16 consecutive years, showing a commitment to rewarding its shareholders even through periods of market uncertainty.
It’s true that the tough consumer spending environment has taken a toll on BCE’s earnings growth in recent quarters. Nevertheless, its revenue and adjusted EBITDA still grew positively in the 12 months ended in March 2024, reflecting stable demand for its services. While ongoing macroeconomic challenges may continue to affect its earnings growth in the short term, I still find BCE’s long-term prospects strong, given its dominant position in the Canadian telecom market and its continued investments in 5G and broadband network expansion.
