2 Blue-Chip Canadian Stocks That Offer Over 6% Dividend Yields

Considering their reliable cash flows, high yields, and healthy growth prospects, these two blue-chip Canadian stocks are ideal buys as markets continue to make new highs.

On Friday, Jerome Powell, the United States’ Federal Reserve chairman, signalled about possible rate cuts during the bank’s next month meeting. This signal appears to have raised investors’ optimism, thereby driving the S&P/TSX Composite Index to a new high. The index closed Friday’s trading session 1% higher and is up 14.6% for this year.

If you are concerned about the sharp rise in Canadian equity markets and the potential impact of tariffs on global economic growth, consider adding quality dividend stocks to help stabilize your portfolio while generating a steady passive income. Meanwhile, here are two top Canadian companies that offer dividend yields of over 6%.

dividends can compound over time

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Telus

Telus (TSX: T), which has raised its dividend 28 times since May 2011, is my first pick. Telecom companies enjoy healthy cash flows due to their recurring revenue streams, thereby allowing them to pay and raise their dividends consistently. Meanwhile, the company continues to expand its customer base by adding 198,000 customers in the second quarter of 2025. Its superior bundled services and expansion of its PureFibre connectivity appear to have led to an expansion of its customer base, driving its financials. The company generated $535 million of free cash flow during the quarter, representing an 11% increase from the previous year’s quarter.

Moreover, Telus is advancing its $70 billion capital investment plan, aimed at expanding 5G coverage and broadband connectivity through 2029. These expansions could allow it to attract new customers, thereby driving its financial growth. Further, the company has agreed to sell a 49.9% stake in its Canadian wireless tower infrastructure business to La Caisse for $1.26 billion. The company expects to utilize the net proceeds from asset sales to lower its debt, which can bring its net debt-to-earnings before interest, tax, depreciation, and amortization ratio down by 0.17. Given its growth prospects, Telus’s management is confident of raising its dividend by 3-8% annually through 2028. It currently offers an attractive forward dividend yield of 7.26% and trades at a reasonable NTM (next-12-month) price-to-sales multiple of 1.7. Considering all these factors, I am bullish on Telus.

SmartCentres Real Estate Investment Trust

Another Canadian stock that offers over 6% of dividend yield is SmartCentres Real Estate Investment Trust (TSX: SRU.UN), which owns and operates 197 strategically located properties across Canada. Earlier this month, the company reported healthy second-quarter performance. It leased 147,818 square feet of space during the quarter, raising its occupancy rate to 98.6%. Additionally, its same-property net operating income grew 4.8% amid improved customer traffic and a strengthened tenant base.

Amid these solid operating performances, the Toronto-based REIT’s adjusted funds from operations per unit grew 17% to $0.55. Moreover, the company has an impressive developmental pipeline with 58.9 million square feet of development permissions. Of these permissions, around 0.8 million square feet of properties are under construction. Along with these expansions, its lease-up and renewal activities could support its financial growth in the coming quarter, thereby allowing it to reward its shareholders with healthy dividends. Meanwhile, the company has increased its dividends at an annualized rate of 1.7% for the last 10 years and currently offers a healthy forward dividend yield of 6.8%. Besides, it trades at a NTM price-to-earnings multiple of 18.2, making it a suitable buy at these levels.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust and TELUS. The Motley Fool has a disclosure policy.

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