With the Bank of Canada continuing to lower rates, income-focused investors looking for reliable options to maximize returns could consider investing in top dividend-paying stocks with high yields. The TSX has several fundamentally strong stocks offering high and sustainable yields, making them attractive investments in a market where interest rates are declining.
Against this background, here are three TSX stocks to buy today. These stocks offer at least a 6% yield.
Enbridge stock
Enbridge (TSX:ENB) is a no-brainer for investors seeking reliable high yield stocks. The energy infrastructure company’s low-risk commercial arrangements and long-term contracts position it well to consistently generate solid distributable cash flow (DCF) per share that supports its payouts.
Thanks to its resilient business model and low-risk cash flows, Enbridge has been paying dividends for 70 consecutive years and has increased them annually for the past 30 years. Enbridge stock pays a quarterly dividend of $0.943 per share, equating to a yield of over 6.1%. While Enbridge offers a high and attractive yield, its payout ratio of 60–70% of its DCF is well-covered and sustainable in the long term.
Enbridge’s extensive energy infrastructure assets are expected to remain highly utilized over the next decade, driving steady cash flow. Moreover, its financials will benefit from contracted assets and take-or-pay agreements, ensuring stable revenues regardless of market conditions. Additionally, low-cost expansion opportunities and its growing portfolio of regulated utility assets position it well to generate low-risk earnings that will support its future payouts.
Overall, Enbridge is well-positioned to consistently increase its dividend in the coming years and offer a reliable yield.
Telus stock
Shares of Canadian communications giant Telus (TSX:T) are worth buying today for generating a high and durable yield. This wireless service provider has a strong record of profitable growth while rewarding shareholders with generous dividends.
Since 2011, Telus has increased its dividend 27 times. Moreover, it returned over $21 billion in dividends since 2004. Currently, it pays a quarterly dividend of $0.402 per share, translating to a high 7.5% yield. Moreover, through its sustainable multi-year dividend growth program, it is on track to increase its annual dividend by 7–10% in 2025.
Telus is expanding its customer base while keeping churn rates low, ensuring steady revenue streams. Telus is also investing in its network, enhancing coverage and reliability through spectrum acquisitions and infrastructure upgrades. The expansion of its 5G and PureFibre networks will further strengthen its market position, driving subscriber growth and revenue. Telus has also diversified its revenue base into digital services, which will accelerate its growth and support its future payouts.
Scotiabank
Financial services giant Scotiabank (TSX:BNS) is another reliable stock for investors seeking high, worry-free yields. The leading Canadian bank is known for its solid payout history and ability to return significant cash to its shareholders.
Scotiabank has been paying dividends since 1833. BNS stock’s dividend has grown at a CAGR of 5% since 2014.
Scotiabank’s exposure to high-growth markets and ability to deliver solid loan and deposit growth drive its revenue. Moreover, its diversified revenue streams, including the wealth management and capital markets business, strong asset quality, and operating efficiency, support its earnings and dividend payouts.
The bank’s balance sheet remains strong, providing a solid base for future earnings growth. Scotiabank pays a quarterly dividend of $1.06 per share, reflecting a high yield of about 6.2%.
