4 High-Yield Dividend Stocks for Stable Passive Income in Canada

These four stocks are ideal for boosting passive income due to their healthy underlying businesses and high dividend yields.

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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.

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%.

Created with Highcharts 11.4.3Enbridge PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

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%.

Created with Highcharts 11.4.3Bank Of Nova Scotia PriceZoom1M3M6MYTD1Y5Y10YALL6 Apr 20203 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '252021202120222022202320232024202420252025304050607080www.fool.ca

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.

Created with Highcharts 11.4.3TELUS PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

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.

Created with Highcharts 11.4.3NorthWest Healthcare Properties Real Estate Investment Trust PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

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.

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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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Bank of Nova Scotia, Enbridge, and TELUS. The Motley Fool has a disclosure policy.

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