Want Safe Dividend Income in 2025 and Beyond? Invest in the Following 3 Ultra-High-Yield Stocks

The dividends of these high-yield stocks are safe, making them reliable investments for steady passive income.

| More on:
jar with coins and plant

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

Investors looking for relatively safe income in 2025 and beyond could add top Canadian dividend stocks with high and sustainable yields. Notably, the distributions of these Canadian stocks are supported by their solid fundamentals and a growing earnings base, making them a reliable investment to generate worry-free passive income.

Against this background, here are three safe dividend stocks offering ultra-high yields of over 7%.

Telus

Telus (TSX:T) is one of the most reliable Canadian stocks for investors seeking ultra-high dividend yields. This Canadian communication services provider is known for consistently growing dividends, thanks to its ability to generate profitable growth and solid free cash flows. Also, Telus stock offers a high yield of over 8%, which is near the current market price.

The company has returned over $21 billion in dividends since 2004 and increased its dividend 27 times since 2011, reflecting the resilience of its payouts in all market conditions. Under its dividend growth program, the company plans to grow its future dividends by 7-10%, making it a dependable source of increasing passive income for investors. Its payout ratio of 60-75% of free cash flow is also sustainable in the long term.

Created with Highcharts 11.4.3TELUS PriceZoom1M3M6MYTD1Y5Y10YALL6 Apr 20204 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '25202120212022202220232023202420242025202515202530www.fool.ca

The telecom giant’s future payouts will be supported by its growing earnings, solid subscriber base, strong retention rates, and focus on cost efficiency. Further, Telus is focused on improving its cost-to-serve and driving higher margins per user, which will likely drive continued profitability.

The company’s mobile network expansion and increase in residential internet, TV, and security subscribers will likely boost its top line. Further, the company’s strategic efforts to monetize its assets and the ongoing momentum in the health services division are expected to support its bottom line and future payouts.

Firm Capital Mortgage Investment Corporation

Investors could consider investing in Firm Capital Mortgage Investment Corporation (TSX:FC) stock for its ultra-high yield. Firm Capital specializes in short-term real estate mortgage loans targeting residential and commercial customers. 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 7.9%.

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

Firm Capital Mortgage Investment’s diversified portfolio, focus on short-term financing, conservative lending approach, strong underwriting capabilities, and solid risk management practices position it well to generate solid earnings across all market conditions, supporting its monthly dividend payouts.

Further, the company’s strategy to invest in debt and equity across Canada’s private and public real estate markets can generate solid interest, fees, and income, enabling higher dividend payments.

SmartCentres Real Estate Investment Trust

Another high-yield stock worth considering is SmartCentres Real Estate Investment Trust (TSX:SRU.UN). This REIT offers a consistent monthly dividend of $0.154 per share and a high yield of 7.4%. Notably, the company has maintained its distributions regardless of economic conditions, which reflects its ability to generate strong financials and management’s commitment to reward its shareholders. Its resilient payouts make it one of the top stocks for generating recurring passive income.

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

SmartCentres REIT benefits from a defensive real estate portfolio and its strategically located properties in high-traffic areas. The company witnesses solid lease demand for its properties and consistently sports a high occupancy rate. Further, increasing renewal rates, higher rental growth, and robust cash collections augur well for future same-property net operating income.

The company’s management expects the occupancy rate to remain high in the coming quarters, led by tenant demand for more locations. Meanwhile, the strong performance of its core retail business and continued expansion into a mixed-use development portfolio will continue to generate high-quality income across all provinces and support its future monthly dividend payments. Also, SmartCentres REIT’s extensive land bank provides a solid base for future growth.

Should you invest $1,000 in Killam Apartment Reit right now?

Before you buy stock in Killam Apartment Reit, 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 Killam Apartment Reit 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 and TELUS. 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

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »

A worker gives a business presentation.
Dividend Stocks

Market Dip: Opportunity or Risk This April?

This market dip might have investors worried, but should they be excited instead?

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Why I’d Add This Top TSX Dividend Stock to My TFSA During the Current Dip

The market is full of volatility right now. Fortunately, this top TSX dividend trades at a discount and pays a…

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $20,000 in 2 TSX Stocks for $1,421.09 in Passive Income

Are you looking to bump up your passive income? Then consider these two TSX stocks.

Read more »

A plant grows from coins.
Dividend Stocks

Where I’d Invest in Canadian Value Stocks for Long-Term Compounding

When markets plunge, Warren Buffett's wisdom shines: Get greedy when others are fearful. Canadian value stocks like Scotiabank await patient…

Read more »

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 »