3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These Canadian dividend stocks provide a compelling yield of at least 7% and have reliable payouts.

| More on:
dividends can compound over time

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investing in dividend stocks, particularly those with high and sustainable yields, is a smart strategy for generating recurring passive income for decades. Further, these high-yield dividend-paying stocks can act as a hedge against inflation.

Against this background, let’s look at the three Canadian stocks offering ultra-high yields of over 7%. These stocks are backed by fundamentally strong businesses, suggesting that their payouts are sustainable.

BCE

BCE (TSX:BCE) is a top stock for investors seeking reliable, ultra-high dividend yields. This Canadian communication services provider is known for consistently paying and growing dividends, which reflects the resilience of its payouts in all market conditions.

BCE has an impressive streak of 16 consecutive years of dividend growth. Moreover, it currently pays a quarterly dividend of $0.998 per share, translating into a high yield of about 8.7% (based on a closing price of $46.09 as of October 15). BCE’s high yield is backed by its strong earnings base, focus on expansion into high-growth sectors, and commitment to enhancing shareholders’ value.

Created with Highcharts 11.4.3Bce PriceZoom1M3M6MYTD1Y5Y10YALL6 Apr 20203 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024202520252030405060www.fool.ca

Thanks to its extensive broadband fibre network and fast 5G mobile services, BCE is consistently growing its user base. Furthermore, BCE is managing promotions more effectively and profitably, driving new user growth.

In addition, BCE is focusing on capitalizing on growth areas like digital advertising, cloud computing, and security services. These initiatives are likely to contribute to its top line and drive earnings and dividend payments.

Firm Capital Mortgage Investment Corporation

Investors could consider Firm Capital Mortgage Investment Corporation (TSX:FC) for its high yield. Firm Capital offers residential and commercial real estate financing. It also provides loan servicing, asset management, and investment-related services.  This non-bank lender pays a monthly dividend of $0.078 per share and offers an attractive yield of about 8.1%.

Created with Highcharts 11.4.3Firm Capital Mortgage Investment Corporation PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Firm Capital Mortgage Investment strategically invests in debt and equity across Canada’s private and public real estate markets, which generates solid interest, fees, and income from investments. Moreover, the company’s focus on short-term financing, a conservative lending approach, and strong underwriting capabilities help it maintain solid earnings and support its dividend payouts.

Overall, this financial services company’s high yield and monthly payouts make it a compelling passive income stock.

SmartCentres Real Estate Investment Trust

REITs are known for their high payout ratios and monthly distributions, making them top stocks for passive income. Within REITs, SmartCentres Real Estate Investment Trust (TSX:SRU.UN) is an attractive investment for its durable dividends and high yield. The firm pays a monthly dividend of $0.154 per share and offers a high yield of 7.1%.

Created with Highcharts 11.4.3SmartCentres Real Estate Investment Trust PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

SmartCentres REIT owns a defensive portfolio of real estate, including high-traffic retail shopping centres and mixed-use properties. Moreover, it has a high-quality tenant base of large retailers that drives occupancy and rent collection and supports its net operating income (NOI) and payouts. Further, it benefits from solid leasing demand from both its existing tenants and new retailers.

The company’s management expects the leasing and renewal rate momentum to sustain in the coming quarters. Meanwhile, SmartCentres focuses on revenue diversification through expansion into mixed-use developments such as residential, office, and self-storage properties, which will likely accelerate its growth rate. Also, SmartCentres REIT’s extensive land bank provides a solid base for future growth.

Should you invest $1,000 in Coca-cola right now?

Before you buy stock in Coca-cola, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Coca-cola wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

analyze data
Dividend Stocks

How I’d Invest $28,000 in Canadian Natural Resource Stock to Amass Personal Wealth

Investing in TSX dividend stocks such as Enbridge can help you earn a passive-income stream in 2025.

Read more »

hand stacks coins
Dividend Stocks

Got $400? How I’d Start Building Income With 3 High-Yield Stocks for the Long Term

These high-yield dividend stocks have a solid payout history, making them compelling investments to generate passive income.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

I’d Put $15,000 in These 3 Dividend-Growth Champions for Increasing Income Potential

Want to offset some volatility? Here are three defensive dividend-growth champions that can generate a juicy yield right now.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Transform Your TFSA Into a Cash-Creating Machine With $7,000

Discover how the Tax-Free Savings Account can be your golden goose for generating cash without losing your investment.

Read more »

monthly desk calendar
Dividend Stocks

How I’d Invest $10,000 in Canadian Value Stocks for Monthly Dividend Income

A $10,000-diversified portfolio of value stocks focusing on dividend safety, yield, growth, and payment schedules can provide a reliable source…

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Is This Correction Your Chance? Top 4 Canadian Dividend Stocks on Sale

Stocks may be down, but now is your chance to get some of these top dividend stocks on sale.

Read more »

Confused person shrugging
Dividend Stocks

Where to Invest $2,500 in the TSX Today

These TSX stocks offer attractive dividends and a shot at decent upside on a rebound.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $25,000 in These Dividend Stocks for $1,956.66 in Annual Passive Income

Dividends stocks can make a huge difference, even if shares don't move an inch. And these might be the best.

Read more »