Want 6% Yield? 3 TSX Stocks to Buy Today

These high-yield TSX stocks are better positioned to sustain their payouts and maintain consistent dividend payments.

| More on:
ways to boost income

Source: Getty Images

As interest rates are on a downtrend, high-yield dividend stocks appear to be a compelling investment to generate passive income in 2025. However, investors should look for stocks supported by established businesses, solid fundamentals, and a growing earnings base. These businesses are well-positioned to sustain their high yields and maintain consistent dividend payouts over the long term. With this backdrop, here are three TSX stocks offering dividend yields of over 6%.

High-yield stock #1

Canadian investors seeking high and reliable yields could consider Enbridge (TSX:ENB) stock. The company transports oil and gas, has a diversified utility footprint, and a growing renewable energy portfolio. Thanks to its diversified revenue streams and resilient business model, Enbridge generates solid earnings and distributable cash flow (DCF) per share that support its payouts.

Enbridge recently increased its dividend by 3% to $3.77 per share, marking its 30th consecutive annual growth. The company’s current dividend translates into a high yield of over 6%.

The company’s extensive asset base witnesses high utilization rates, ensuring steady cash flow. Moreover, its regulated tolling framework and power-purchase agreements provide further financial predictability, helping to sustain its dividend payments.

The company continues to optimize its existing assets while pursuing strategic acquisitions to expand its utility footprint. Additionally, its focus on cost-effective expansion projects bolsters its earnings potential, paving the way for continued dividend growth.

High-yield stock #2

SmartCentres REIT (TSX:SRU.UN) could be an excellent addition to your portfolio, enhancing its income-generating potential. The REIT (real estate investment trust) offers a high and sustainable yield of 7.6% and monthly payouts. This makes SmartCentres an attractive choice for passive-income investors.

The REIT has a resilient portfolio of mixed-use properties, primarily anchored by grocery-based retail centers, which generate stable income and are relatively insulated from economic downturns. These properties maintain high tenant retention, providing consistent and reliable distributions to investors.

SmartCentres’s retail portfolio attracts steady foot traffic and demand, maintaining high occupancy and solid rent collection even in challenging markets. Moreover, it witnesses solid demand from new and existing tenants for new locations.

Looking ahead, SmartCentres is focusing on mixed-use development projects. These initiatives will diversify its income streams into sectors like residential, office, self-storage, and industrial spaces, reducing risk and enhancing recurring revenue opportunities. Moreover, with a substantial land bank and financial strength, the REIT is well-positioned to capitalize on growth opportunities while delivering stable, attractive returns to investors.

High-yield stock #3

Investors seeking high and reliable yields could add shares of the Canadian communication company Telus (TSX:T) to their portfolios. The company’s solid dividend growth history, sustainable payout ratio, and attractive yield make it a top option for passive-income investors.

Telus has raised its dividend 27 times since 2011 and returned over $21 billion in dividends since 2004. The company pays a quarterly dividend of $0.402 per share, translating into a high yield of 8.2%.

Telus has consistently grown earnings while expanding its subscriber base. Further, it has a low customer churn rate. These strengths drive strong cash flows and sustainable payouts. The company’s investments in network upgrades and spectrum acquisitions will likely drive its future revenue growth through new customer acquisitions and connected device subscriptions.

Moreover, the company is well-positioned to benefit from the 5G transition and rising mobile data demand. Telus has also diversified into digital IT solutions, artificial intelligence-driven automation, and Internet of Things services, which strengthens its growth potential and makes it a compelling long-term investment.

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 Enbridge, SmartCentres Real Estate Investment Trust, and TELUS. The Motley Fool has a disclosure policy.

More on Dividend Stocks

stock research, analyze data
Dividend Stocks

Generate $500 in Tax-Free Monthly Income With This Easy Strategy

Passive-income investing is easy thanks to this fund's steady $0.10-per-share monthly payout.

Read more »

how to save money
Dividend Stocks

Got $2,000? 5 Telecom Stocks to Buy and Hold Forever

The discount and recovery potential are reasons enough to consider telecom stocks in Canada right now. The fact you can…

Read more »

Dividend Stocks

The Underperformers: Canadian Stocks That Missed the Mark in 2024

I'm bullish on one of these dividend stocks but bearish on the other.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

2 TSX Stocks to Invest $20,000 and Create $2,597.60 in Passive Income

Need income? We got you, with these two top dividend stocks due for more solid growth and passive income.

Read more »

money cash dividends
Dividend Stocks

Trump Tariffs: 1 TSX Stock That Could Take a Huge Hit

This TSX stock hopes to improve shareholder returns in 2025 but could take a huge hit instead from Trump’s tariffs.

Read more »

A lake in the shape of a solar, wind and energy storage system in the middle of a lush forest as a metaphor for the concept of clean and organic renewable energy.
Dividend Stocks

Best Stock to Buy Right Now: Brookfield Renewable vs TransAlta Corporation?

Brookfield Renewable Partners (TSX:BEP.UN) is a massive player in renewables.

Read more »

Dividend Stocks

1 Canadian Stock Down 26% That’s Pure Long-Term Perfection

Canadian National Railway (TSX:CNR) is a prime example of a Dividend Aristocrat that merits consideration.

Read more »

oil and gas pipeline
Dividend Stocks

Better Midstream Stock: Pembina Pipeline vs Keyera?

Rising energy demand is setting up midstream stocks for good times, with generous dividends for shareholders.

Read more »