If you’re one of many investors who are ready to move on from former dividend darling BCE (TSX:BCE) after its dividend reduction, it’s time to go on the hunt for names in the high-yield universe. While I do think that BCE will, in due time, find its footing again and perhaps increase its payout at an above-average rate over time, I do think that there are other names out there with more attractive yields and dividend growth profiles.
And perhaps most notably, a lower degree of volatility amid all the market unknowns. With geopolitical tensions rising considerably over the past week and the consumer-spending-eroding impact of Donald Trump’s tariffs, it’s a good time to be a bit on the cautious side as you look for your next source of big passive income. In this piece, we’ll concentrate on a few high-yielders that I believe have payouts which are safer than their size suggests. So, as we officially close off the first half of the year, consider the following two names if you’re in the market for a cheap dividend that’s on pretty stable footing.
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Telus
No surprises here. Telus (TSX:T) is BCE’s peer, and it now has the larger dividend yield, currently hovering just north of 7.5%. That’s a towering yield, and while Telus has faced the same macro and industry headwinds as its top rival, the firm has been able to keep on growing its payout despite the pressures. The lack of a media segment has been a major plus. And while Telus stock could stay stuck in a bear market for the next year or two, I must say that the commitment to keeping the dividend intact deserves the respect of income investors.
At 20.2 times trailing price-to-earnings (P/E), shares of the $33 billion telecom titan look more or less fairly valued. For the most part, you’ll be getting in for the secure payout and its predictable dividend growth trajectory. While I’m no fan of hunting down dividend stocks yielding north of 7%, I do find that Telus is a name that stands out as a deep-value option that will literally pay massive dividends, likely for years (even decades) to come.
SmartCentres REIT
Up next, we have SmartCentres REIT (TSX:SRU.UN), which has a safe 7.3% distribution yield at the time of this writing. And while the past several years have been a drag, with the stock now down 12% in the past 10 years, I find the payout and forward-looking growth trajectory to be enough reason to buy the stock as shares look to regain some ground going into the second half of 2025. When it comes to REITs, it’s not just about rate-cut hopes.
SmartCentres is a retail REIT that’s developing some pretty promising projects across Ontario over the coming years. And it’s not just about retail properties, either. As I’ve described in previous pieces, Smart is serious about diversifying into mixed-use properties with its new developments. With an underrated project pipeline and a distribution that could be subject to growth, I’m inclined to label Smart as another 7%-yielder worth buying if you’re looking for safe passive income.
