A financially secure retirement isn’t just about saving — it’s about having multiple income streams to ensure stability. One valuable income stream retirees can explore is dividend income from Canadian Dividend stocks with sustainable and high yields. These TSX stocks can be a reliable bet for passive income after retirement.
However, stocks are risky and volatile, and dividend payouts are not guaranteed. To mitigate these risks, retirees should focus on fundamentally strong companies with growing earnings bases and a history of reliable dividend payments and increases. These stocks can help retirees earn secure dividend income. Against this background, here are three high-yield TSX stocks for Canadian retirees.
High-yield dividend stock #1
Telus (TSX:T) is one of the reliable high-yield dividend stocks retirees could consider for passive income. This leading communication service provider has consistently paid and increased its dividends over the years. In fact, through its multi-year dividend-growth program, the company has distributed over $21 billion in dividends in the past two decades.
Telus’s financial strength and ability to expand its customer base have played a key role in sustaining its dividend growth. One of its significant advantages is its industry-leading low postpaid mobile churn rate, which remains below 1%. This means customers are highly loyal, leading to steady revenue and profits.
Since 2011, Telus has raised its quarterly dividend 27 times and has no plans to slow down. The company could increase its dividend by a high single-digit percentage in 2025. Currently, Telus pays a quarterly dividend of $0.402 per share, offering an attractive 7.2% yield.
Looking ahead, Telus is well-positioned to deliver profitable growth. Its investments in network infrastructure, including 5G expansion and pure fibre, will enhance customer retention. Additionally, premium bundled services across mobile and fixed segments will improve unit economics. Moreover, cost-saving digital initiatives will strengthen its financial health, supporting future dividend growth. Overall, Telus is a top option for retirees to generate a steady income.
High-yield dividend stock #2
Retirees could consider adding Brookfield Renewable Partners (TSX:BEP.UN) stock to their portfolio for steady income. This company is one of the leading players in the renewable energy sector, with a strong track record of consistent dividend growth. Since 2001, Brookfield has increased its dividend at a compound annual growth rate (CAGR) of 6%, making it a reliable choice for those seeking worry-free income.
Brookfield’s highly diversified portfolio of renewable energy assets, large installed capacity, and long-term, inflation-linked contracts ensure stable and predictable cash flows. Additionally, Brookfield’s strategic acquisitions help strengthen its position in the clean energy segment and its growth.
Looking ahead, the increasing demand for clean energy, driven by the broader push toward electrification and the expansion of data centers, positions Brookfield Renewable for significant growth. The company’s extensive development pipeline and strong liquidity augur well for growth. Thanks to its solid financials, Brookfield forecasts annual dividend growth of 5-9% over the long term. Moreover, it offers an attractive yield of 6.9%.
High-yield dividend stock #3
With a high yield of over 6% and an impressive 30-year track record of consecutive dividend increases, Enbridge (TSX:ENB) is a no-brainer passive-income stock for retirees. This energy infrastructure company’s diversified revenue base, contracted assets, high utilization of its system, and low-risk commercial arrangements enable it to generate resilient earnings and distributable cash flows (DCF) across all market conditions.
Enbridge’s investments in both traditional and renewable energy position it well to benefit from rising energy demand. Moreover, its focus on optimizing operations and leveraging low-cost expansion opportunities will drive its DCF per share and dividend payments. Enbridge’s management projects mid-single-digit growth in earnings and DCF per share over the long term, with plans to raise dividends in line with DCF per share.
Enbridge remains a compelling choice for income investors with a reliable payout history, a strong business model, and clear visibility into future dividend growth.
