Dividend stocks are essential for building long-term wealth. Along with generating stable cash flows, these companies stabilize your portfolios as they are less prone to market volatility. Moreover, investors can also reinvest dividend payouts to earn higher returns. Against this backdrop, let’s look at three top Canadian stocks that offer over 7% dividend yields.
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SmartCentres Real Estate Investment Trust
SmartCentres Real Estate Investment Trust (TSX: SRU.UN) is an excellent dividend stock to consider due to its healthy occupancy and collection rates, as well as its higher dividend yield. It operates 195 strategically located properties with a total income-producing area of 35.5 million square feet. It has a solid tenant base, with 95% of tenants having a national or regional presence, and 60% of these tenants provide essential services. The company enjoys a healthy occupancy rate, which stood at 98.7% as of the end of the fourth quarter.
Moreover, SmartCentres REIT continues to lease The Millway, a 458-unit purpose-built rental property. It had leased 95% of the units by the end of last year. It has $1 million square feet of properties under construction and has permission to develop 58.1 million square feet of mixed-use properties. These mid- and long-term growth prospects could continue driving its financial performance, enabling the company to reward its shareholders with healthy dividends. Its monthly payout of $0.1542 per share translates into a forward dividend yield of 7.26%.
Telus
Another high-yielding dividend stock I am bullish on is Telus (TSX: T), which offers a forward dividend yield of 7.75%. Supported by its solid cash flows from recurring revenue streams, the Canadian telco has rewarded its shareholders by returning $27 billion through dividends and share repurchases since 2004. Also, it has raised its dividends 27 times since May 2011.
Moreover, the demand for telecommunication services is increasing amid growing penetration, technological advancements, and rising data consumption. Meanwhile, the company plans to invest around $2.5 billion this year to expand its wireless and broadband infrastructure. Furthermore, its Telus Health and Telus Agriculture & Consumer Goods sectors continue to grow, driven by strategic investments and strong execution. However, amid the weakness in the telecom sector, Telus has been under pressure over the last few years and trades at an attractive NTM (next 12 months) price-to-sales multiple at 1.5, making it an excellent buy.
NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) owns and manages 172 healthcare properties with a gross leasable area of 15.9 million square feet. Its long-term lease agreements (weighted average lease expiry of 13.6 years) and government-backed tenants have enabled it to maintain an occupancy rate of over 96% for eight consecutive quarters. Furthermore, it sold approximately $1.4 billion of non-core assets in 2024, utilizing the net proceeds to reduce its debt levels by 26% to $2.7 billion. Additionally, the company has implemented several cost-cutting initiatives, including reducing its workforce to decrease its general and administrative expenses by 20%.
Moreover, NorthWest Healthcare sold its stake in Assura, a United Kingdom-based healthcare REIT, for $240 million earlier this month, further boosting its liquidity. The company received an investment-grade credit rating in February, which could lower its borrowing cost. Considering all these factors, I believe NorthWest Healthcare’s future dividend payouts will be safer. It currently offers a monthly dividend payout of $0.03 per share, translating into a forward dividend yield of 7.35%.
