When it comes to building a well-diversified portfolio in your Tax-Free Savings Account (TFSA), it’s all about finding the right balance between long-term growth, passive income and defence to ensure your capital is protected. While reliable Canadian dividend stocks with steady growth potential are often the foundation of any strong portfolio, adding a few high-yield stocks can significantly boost your overall income, especially if you’re looking to maximize your tax-free gains.
The key for investors, though, is to focus on high-yield dividend stocks that are also sustainable. A big payout doesn’t mean much if the business behind it is unreliable.
Therefore, it’s essential to find companies with strong fundamentals, reliable operations, and the ability to maintain or even grow their dividend, even in uncertain environments.
So, with that in mind, here are three top Canadian dividend stocks with attractive yields that could help you maximize your TFSA returns in 2025 and beyond.
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A top restaurant royalty stock
If you’re looking for high-yield dividend stocks to boost the passive income your TFSA generates, there’s no question that Pizza Pizza Royalty (TSX: PZA) is one of the best picks Canadian investors can consider.
While the restaurant sector can face higher macroeconomic headwinds as the economy slows down, Pizza Pizza continues to prove its reliability as a top dividend stock.
One of the reasons it’s an ideal stock for passive income seekers is that it benefits from a simple business model where it collects royalties on sales generated by Pizza Pizza and Pizza 73 locations rather than owning or operating the restaurants themselves. This allows for consistent, asset-light income that’s tied directly to top-line performance.
Therefore, not only is it a lower-risk business model, but because it’s a top-line royalty, its sales don’t tend to fluctuate much either.
So, if you’re looking for high-yield Canadian dividend stocks that can boost the passive income your TFSA generates, there’s no question that Pizza Pizza and its 6.4% yield is a top pick.
A high-quality Canadian REIT
In addition to a royalty stock like Pizza Pizza, another one of the best high-yield dividend stocks that Canadian investors can buy now is Choice Properties REIT (TSX: CHP.UN).
Choice is a real estate investment trust (REIT) that owns a portfolio of retail and industrial properties anchored by its largest tenant, Loblaw Companies.
Although retail REITs have faced some pressure in recent years due to concerns about consumer spending and the broader economy, Choice’s portfolio has held up well thanks to its exposure to grocery-anchored plazas and essential services.
In fact, even with many concerned about the economy lately, analysts still expect Choice to see a more than 4% increase in revenue this year and a 7.6% increase in adjusted funds from operations per share.
Therefore, with Choice offering a dividend yield of 5.3% and returning cash to investors every single month, there’s no question that it’s one of the best high-yield dividend stocks Canadian investors can buy for their TFSAs today.
One of the best Canadian dividend stocks in the energy sector
Finally, if you’re looking for high-yield Canadian dividend stocks to buy right now, one of the very best to buy for your TFSA is another top royalty stock, Freehold Royalties (TSX: FRU).
Much like how Pizza Pizza is a lower-risk restaurant stock due to its royalty structure, Freehold Royalties is also a unique stock that allows you to benefit from the energy sector without taking on as much risk as traditional producers.
As a royalty company, Freehold doesn’t actually extract the oil and gas itself. Instead, it owns the land and collects a cut from producers that operate on it. This is a lower-risk business model that typically produces higher margins and more stable cash flow.
Right now, Freehold is yielding over 9%, making it one of the highest-yielding stocks on the TSX.
Plus, with its expanding portfolio of U.S. assets in addition to its Canadian land and a strong balance sheet, Freehold still has the potential to grow its income further over the coming years.
So, if you’re looking for high-yield dividend stocks to buy now, there’s no question that Freehold will be a top choice for many Canadian investors.
