Investing in high-yield dividend stocks enables you to begin a passive income stream at a low cost. In this article, I have identified three Canadian dividend stocks that offer a yield of at least 7%, which you can buy and hold right now.
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Dividend stock #1
Decisive Dividend (TSXV: DE) acquires and operates established manufacturing companies across North America, focusing on profitable businesses with strong management teams.
In Q1, it reported record-high revenue of $39.2 million, a 34% increase over the year-ago period. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) reached $7 million, nearly matching the combined Q1 and Q2 totals of 2024. This strong performance was broad-based across all five business verticals.
Hearth businesses Blaze King and ACR saw 17% sales growth despite entering their seasonally slower period. The agriculture division, led by IHT’s 60% surge, benefited from recovering pork prices that restored farmer confidence and investment. Industrial products companies collectively grew by 32%, while the merchandising business, Marketing Impact, expanded by 38%.
The operational improvements drove cash flow generation, reducing the trailing 12-month dividend payout ratio from 96% to 82% and lowering the leverage ratio from 3.1 times to 2.7 times. Free cash flow, less maintenance capital expenditures, improved 128% year-over-year, demonstrating the sustainability of the current dividend.
Management plans to launch six new hearth products in 2025, including the E16 stove for North America and the Tempest overnight burn stove for Europe. The addition of COO Chris Goodchild and focus on operational excellence positions Decisive well for continued M&A activity and organic growth expansion.
Decisive Dividend offers shareholders a forward yield of 7.2% in 2025.
Dividend stock #2
MCAN Mortgage (TSX: MKP) operates as a Canadian mortgage investment corporation, specializing in residential construction loans, single-family mortgages, and strategic partnerships.
It delivered robust 2024 results with net income of $77.6 million, while total assets grew by 13% to $5.3 billion. MCAN’s diversified business model proved resilient, with record uninsured residential mortgage balances reaching $1.1 billion, and construction portfolios yielding strong returns at an average yield of 9.5%.
MCAN Home achieved $1.1 billion in new mortgage originations, a 17% increase year-over-year, benefiting from improved housing affordability as interest rates declined. The business maintains strong broker relationships and focuses on major urban markets in Ontario, Alberta, and British Columbia.
MCAN Capital’s construction lending portfolio remained stable at $1.1 billion with $653 million in new funding, demonstrating the company’s disciplined approach to residential development financing. The division has maintained negligible loan losses throughout its three-decade history.
MCAN successfully launched direct-to-consumer term deposits, achieving quarterly growth rates of 159% from a small base. MCAN’s strategic investment in MCAP, Canada’s largest independent mortgage finance company with $154 billion in assets under management, continues providing steady income contributions and operational synergies.
Looking ahead, MCAN is investing in operational transformation, including an overhauled underwriting platform expected to enhance efficiency and broker service levels.
In 2025, the TSX stock offers shareholders a forward yield of 8.5%.
Dividend stock #3
The final TSX stock on my list is Alaris Equity Partners (TSX: AD.UN), which provides alternative financing to private companies through structured investments, receiving royalties and distributions without diluting ownership control.
It reported solid Q1 results with net book value increasing $0.12 to $24.34 per unit and distributable cash flow rising 19.1% to $0.67 per unit. Partner distributions and transaction fees of $43.7 million exceeded guidance while the payout ratio remained conservative at 59%.
Shipyard’s third-party equity transaction boosted fair value by US$8.3 million, while Ohana’s membership growth added US$5.9 million. However, Sono Bello faced headwinds from reduced consumer discretionary spending, resulting in a $13.7 million valuation decline as exit timelines extended.
FMP was significantly impacted by federal spending cuts and contract suspensions, prompting management to defer distributions. Despite this setback, the company maintains positive EBITDA and zero debt, positioning it for recovery as it diversifies beyond government work.
Alaris converted its credit facility to US$450 million, providing US$160 million in undrawn capacity. Management sees abundant acquisition opportunities for partners and new investments as the economic environment creates favourable deal conditions for structured equity providers.
In 2025, the TSX dividend stock offers shareholders a forward yield of 7%.
