Last month, the Bank of Canada lowered its key interest rate by 25 basis points to 2.25%. In this low-interest-rate environment, investors should consider adding quality dividend stocks to their portfolios to generate stable and attractive passive income. Thanks to their regular payouts, these companies also tend to be less sensitive to market volatility, providing greater stability for investors. With that in mind, here are three top TSX stocks that currently offer dividend yields above 5%.
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Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is a significant oil and natural gas producer with operations concentrated in Western Canada, the North Sea, and Offshore Africa. Its diversified and well-balanced asset base, combined with efficient operations, allows the company to maintain a lower breakeven point than many of its peers, supporting strong profitability and robust cash flows. These healthy cash flows have enabled CNQ to increase its dividend for 25 consecutive years at an impressive annualized rate of 21%, while its forward dividend yield stands at 5.2%.
Meanwhile, CNQ continues to grow its asset base through a planned capital investment of $6.6 billion this year, which includes an additional $690 million of unbudgeted net acquisition capital. The company also plans to invest $6.4 billion next year to enhance its production capabilities further. With these investments, management anticipates a 3% increase in output in 2026 compared to 2025. Given its substantial and high-quality reserves, these expansion initiatives could enhance both revenue and earnings, thereby strengthening the company’s ability to continue increasing its dividend.
Enbridge
Enbridge (TSX:ENB) operates a pipeline network that transports oil and natural gas through a tolling framework and long-term take-or-pay contracts. Besides, it provides regulated utility services and produces renewable energy through facilities supported by long-term power purchase agreements (PPAs).
It earns around 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from contracted businesses, while 80% of its adjusted EBITDA is inflation-indexed. Therefore, its financials are less susceptible to economic cycles and market volatility, generating healthy and predictable cash flows that facilitate consistent dividend payouts. Meanwhile, Enbridge has paid dividends for the 70 previous years and has also raised its dividend at an annualized rate of 9% since 1995. It currently offers a forward dividend yield of 5.6%.
Moreover, the Calgary-based energy company continues to expand its asset base through its annual capital investment of $9 billion to $10 billion. Along with these expansions, Enbridge’s improving financial position, with net debt-to-adjusted EBITDA of 4.8, can support its future dividend growth.
Telus
My final pick is Telus (TSX:T), which has raised its dividend numerous times since launching its multi-year dividend growth program in May 2011. Telecom companies generate a significant portion of their revenue from recurring sources, providing strong and stable cash flows that support higher dividend payouts. Telus currently offers an impressive forward dividend yield of 8.1%.
Meanwhile, demand for telecommunications services continues to rise amid increasing digitization, the expansion of remote work, and the growth of e-learning – factors that broaden Telus’s addressable market. The company plans to invest roughly $70 billion over the next five years to enhance its 5G and broadband networks, develop artificial intelligence data centres, and support various technology initiatives. It is also expanding its healthcare segment through strategic investments, innovative product launches, broader sales channels, and disciplined cost management.
Given these strong growth drivers, Telus expects to increase its dividend by 3–8% annually through 2028, making it an attractive long-term investment opportunity.
