Investing in high-yielding dividend stocks is an astute strategy to earn a stable passive income amid falling interest rates. Given their regular payouts, the companies are less susceptible to market volatility, thus stabilizing your investment portfolio. Against this backdrop, let’s look at four high-yield dividend stocks you can buy now to boost your passive income.
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Enbridge
Given its stable cash flows from regulated assets, consistent dividend growth, and high yield, Enbridge (TSX: ENB) would be an excellent dividend stock to have in your portfolios. The energy giant operates a highly regulated midstream business, transporting oil and natural gas across North America. It generates stable and predictable cash flows from long-term contracts, thus allowing it to raise its dividends for the previous 29 years at an annualized rate of 10%. ENB’s forward dividend yield stands at an attractive 6.1%.
Meanwhile, Enbridge continues to expand its asset base with a $27 billion secured capital program. Along with these investments, its acquisition of three utility assets in the United States could boost its financials and cash flows in the coming quarters, thus making its dividend payouts safer. Moreover, given its capital-intensive business, the company could benefit from the recent interest rate cuts.
Bank of Nova Scotia
Bank of Nova Scotia (TSX: BNS) is another reliable dividend stock to have in your portfolio. The financial services company has been paying dividends uninterruptedly since 1833 and has raised its dividends at an annualized rate of 5.8% for the last 10 years. It currently offers an impressive forward dividend yield of 5.5%.
Meanwhile, BNS continues to witness improvement in its financials amid deposit momentum, net interest margin expansion, and positive operating leverage. The falling interest rate could boost economic activities, thus driving credit growth. Also, the company’s strategic investment in KeyCorp could raise its near-term profitability and support its expansion across North America. Considering all these factors, I believe BNS’s future dividend payouts to be safe.
Telus
Telecommunication companies have been under pressure over the last 30 months due to rising interest rates and unfavourable policy changes. However, the steep correction has created an opportune buying opportunity in Telus (TSX: T), which continues to drive its financials.
In the recently reported third-quarter earnings, the company’s operating revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew by 1.9% and 5.6%, respectively. It added 347,000 customers across mobile and fixed categories amid solid demand. Notably, its free cash flows increased by 58% to $561 million amid higher EBITDA and a decline in capital investment. Given its healthy cash flows, I believe its future dividend payouts to be safe. It currently pays a quarterly dividend of $0.4023/share, with its forward yield at 7.4%. Considering its healthy cash flows and high dividend yield, I am bullish on Telus despite the near-term volatility.
NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) is another high-yielding dividend stock to have in your portfolio due to its healthy occupancy and collection rates. Given its defensive healthcare properties, long-term contracts, and government-backed tenants, the REIT’s (real estate investment trust) occupancy and collection rates stood at 96.1% and 99%, respectively, in the recently reported third quarter. Its same property net operating income rose 5% year-over-year.
Meanwhile, NWH continues to strengthen its balance sheet by disposing of assets. As of November 14, the company had sold $1.3 billion of assets this year, with the net proceeds utilized to lower its leverage. Also, it has put 19 properties worth $122.8 million up for sale and hopes to complete the transactions over the next 12 months. Moreover, the company is developing next-generation properties that can create long-term earnings growth, thus making its future dividend payouts safer. Meanwhile, the company currently pays a monthly dividend of $0.03/share and offers a forward yield of 7.4%, making it an appealing buy.
