High-yield Canadian dividend stocks can help you make consistent passive income. These types of stocks offer attractive yields and reduce the amount of time it takes you to recoup the money you spent on your investments. And if you reinvest your dividend payouts, you can steadily accumulate more shares, which can help create significant wealth over time. Thus, high-yield stocks provide regular income and can increase your portfolio’s potential for capital appreciation.
Let’s explore three Canadian stocks with solid fundamentals you can buy now that let you earn a high yield of more than 6%.
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BCE stock
BCE (TSX: BCE) is one of the most reliable high-yield stocks trading on the TSX today. The Canadian communication giant is known for paying and consistently increasing its dividends to enhance its shareholders’ value. Case in point: BCE has increased its dividend for 16 consecutive years.
Currently, it offers a quarterly dividend of $0.998 per share, which adds up to an annual payout of $3.992. Based on its October 4 closing price of $45.76, this gives investors a solid yield of 8.72%.
BCE’s ability to consistently increase its earnings, even in challenging market conditions, supports its dividend. The company benefits from a large customer base, a high-performance broadband fiber network, fast 5G mobile services, and its strategy of bundling mobile and internet services to drive customer retention. Cost-cutting initiatives also help BCE boost profitability and sustain its dividend payments.
Looking ahead, the company’s extensive wireline and wireless network, operational efficiency, and expansion into high-growth areas such as digital ad services, cybersecurity, and cloud computing, should accelerate its growth and lead to higher earnings and dividend payments.
Enbridge stock
Enbridge (TSX: ENB) is well-known for its high yield and resilient payouts. The energy infrastructure company has consistently paid dividends for more than 69 years (!) and has increased them for 29 consecutive years. Enbridge’s dividend distribution history shows the company’s strong financial position, ability to grow earnings in all market conditions, and management’s commitment to enhancing shareholder value.
Currently, Enbridge pays a quarterly dividend of $0.915, reflecting a high yield of 6.6%.
Enbridge could continue to increase its dividend in the coming years on the back of its growing earnings and distributable cash flow (DCF) per share. Its diverse revenue streams, extensive network of liquid pipelines, long-term contracts, power-purchase agreements (PPAs), and regulated tolling frameworks position it well to grow its earnings and DCF per share at a mid-single-digit rate over the long term. Further, its acquisitions and investments in low-risk capital projects augur well for future dividend growth.
Firm Capital Mortgage Investment Corporation stock
Firm Capital Mortgage Investment Corporation (TSX: FC) is another high-yield stock for Canadians to consider. The non-bank lender provides residential and commercial real estate financing. It pays a monthly dividend of $0.078 per share, translating into a high yield of about 8.1%.
As a boutique real estate and financial services company, Firm Capital strategically invests in debt and equity across Canada’s private and public real estate markets. Its portfolio is well-diversified by region, mortgage type, loan size, and property category.
Moreover, the company’s focus on short-term financing, its conservative lending approach, and its strong underwriting practices help it maintain solid earnings and support its dividend payouts.
Looking ahead, Firm Capital Mortgage Investment is poised to generate solid interest, fees, and income from investments in a portfolio of mortgage loans. This will help the company enhance shareholder value through regular dividend payments.
