Investing in dividend stocks with high yields can help generate solid passive income, especially as interest rates are on a downtrend. However, investors should focus on TSX stocks with fundamentally strong businesses, resilient earnings bases, and sustainable payouts. Such Canadian stocks are most likely to generate reliable income in all market conditions. Against this background, here are three stocks that can help secure a 7% yield.
Telus
Telus (TSX:T) is one of the top TSX stocks offering high and reliable yields. The leading wireless service provider’s ability to generate consistent earnings and sustainable payouts enables it to reward its investors with higher dividend payments and share buybacks. Notably, Telus has raised its dividend 27 times since 2011 under its multi-year dividend-growth program. Moreover, it has paid over $21 billion in dividends since 2004. Besides solid payouts, the company offers a compelling yield of 7.6%.
While heightened competition and macro headwinds remain short-term drags, its growing customer base, ability to retain customers, and focus on improving average revenue and margin per user will enable it to generate resilient earnings and cash flows, supporting its payouts.
Telus is enhancing its premium bundled offers and focusing on optimizing its product portfolio and brand mix. Moreover, its flanker brands have solid prospects and the potential to deliver higher margins per user. Additionally, Telus is streamlining operations, reducing costs to serve, and leveraging digital transformation, which augurs well for future earnings and cash flows.
The company’s focus on enhancing its shareholder’s value through higher dividends, sustainable payouts, and high yield makes it a compelling TSX income stock.
SmartCentres REIT
SmartCentres REIT (TSX:SRU.UN) is another top TSX stock that will secure at least a 7% yield in 2025. This real estate investment trust, or REIT, currently offers a dividend yield of 7.5% based on its closing price of $24.56 on January 31.
While the REIT offers a high yield, its payouts are reliable. Notably, SnartCentres owns a diversified portfolio of mixed-used properties that generates strong net operating income (NOI) in all market conditions, supporting its payouts.
Further, SmartCentres’s current portfolio is supported by its grocery-based retail centres. These properties witness high demand and retention rates, are relatively insulated from economic downturns, and generate stable income through higher cash collection and occupancy rates.
Looking ahead, the ongoing strength in its retail properties, increase in lease activity with higher rents, focus on mixed-use development projects, and long-term contracts position it well to deliver higher NOI and offer regular monthly dividends. Moreover, its substantial land bank will accelerate its growth, supporting higher payouts.
Whitecap Resources
Whitecap Resources (TSX:WCP) is a solid investment to generate more than 7% yield in 2025. The oil and gas company pays a monthly dividend of $0.061 per share, reflecting a compelling yield of over 7.6% near the current market price.
While Whitecap Resources offers a high yield, it has distributed over $2.1 billion in dividends since 2013 and enhanced its shareholder value via share repurchases.
Whitecap’s high-quality assets, cost control measures, focus on high condensate production, and drilling efficiencies position it well to generate significant free cash flow, which will likely support its payouts. In addition, Whitecap’s focus on debt reduction, low maintenance capital needs, and strong balance sheet support sustainable earnings and dividend growth.
Its high yield and reliable monthly payouts make Whitecap Resources a top TSX stock for securing high yields.
