The Bank of Canada has cut its benchmark interest rate seven times since June last year, bringing it down from 5% to 2.75%. Additionally, analysts are predicting one to two more rate cuts in the coming quarters. Given the low-interest-rate environment, investors should consider investing in high-yielding dividend stocks to generate a stable passive income. Against this backdrop, let’s look at three high-yielding dividend stocks that you can buy under $200.
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Telus
After a tough couple of years, Telus (TSX:T) has witnessed solid buying this year, with its stock price rising by over 20%, outperforming the broader equity markets. Falling interest rates and healthy quarterly performances have driven the telecom’s stock price higher. Despite the recent surge, the company trades at a 35% discount compared to its 2022 high. Also, it trades at an attractive NTM (next-12-month) price-to-sales multiple of 1.6.
Moreover, Telus has paid $22 billion in dividends since 2004 and has repurchased shares worth $5.2 billion during this period. Also, the company has raised its dividend 28 times since May 2011. Its current quarterly dividend payout stands at $0.4163/share, forming a forward dividend yield of 7.36% as of the July 22 closing price. Furthermore, Telus has planned to invest $70 billion in Canada to expand and enhance its network infrastructure. These expansions could drive its customer base, thereby supporting its financial growth. Its other growth segments, Telus Health and Telus Agriculture and Consumer Goods, are also growing at a healthier rate. Considering its growth initiatives and healthy financial performances, Telus’s management is confident of raising its dividend by 3-8% annually through 2028, thereby making it an attractive investment for income-seeking investors.
Whitecap Resources
Another high-yielding dividend stock that you can buy right now is Whitecap Resources (TSX:WCP), which offers an attractive forward yield of 7.26%. Supported by its solid operational and financial performances, the company has paid $2.5 billion to its shareholders through dividends since 2013. Also, it has repurchased shares worth $748 million since May 2017.
Moreover, WCN closed the strategic combination with Veren in May, thereby optimizing its field operations, reducing operational overlap, improving supply chain efficiencies, and delivering around $200 million in annual synergies. Additionally, the company’s management anticipates its average production this year to be between 295,000 and 300,000 barrels of oil equivalent per day (BOE/d), representing a substantial improvement from 174,225 BOE/d in 2024. Supported by its solid financials, the company’s management expects its net debt-to-fund flows to fall below one by the end of this year.
Furthermore, WCN’s management targets an organic production growth of 3-5% per share in the long term. Considering all these factors, I believe the company’s future dividend payouts are safe, thereby making it an ideal investment.
SmartCentres Real Estate Investment Trust
I have chosen SmartCentres Real Estate Investment Trust (TSX:SRU.UN) as my final pick. Its healthy occupancy rate, amid strategically located properties and a solid customer base, generates stable and reliable cash flows, allowing it to reward its shareholders with healthy dividends. Currently, it offers a monthly dividend payout of $0.1542/share, which translates into a forward dividend yield of 7.12%.
Moreover, SmartCentres has the permission to develop 59.1 million square feet of mixed-use properties, with one million square feet currently under construction. Along with growing demand for retail spaces, its expanding asset base and lease-up and renewal activities could support its financial growth. Therefore, I expect the Toronto-based REIT to continue paying dividends at a healthy rate. Additionally, it trades at an attractive price-to-book multiple of 0.9, making it an excellent buy at these levels.
