With interest rates beginning to soften, income-focused investors could consider high-yield dividend stocks. The prospect of earning passive income from such stocks is appealing, but chasing yields alone can be a costly mistake. When a yield appears unusually high, it often indicates a declining share price, sometimes due to financial stress within the company. In those situations, the payout may be on shaky ground, raising the risk of cuts or a complete suspension.
That’s why the smarter approach is to look beyond the headline yield and focus on dividend strength backed by fundamentals. Companies with solid balance sheets, stable earnings, and consistent cash generation are better positioned to maintain, and potentially increase, their payouts over time. These are the stocks that offer attractive income and provide peace of mind for the long term, making them screaming buys.
Against this backdrop, here are three high-yield Canadian stocks that are screaming buys right now.
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High-yield stock #1: Whitecap Resources
Whitecap Resources (TSX:WCP) is a compelling high-yield dividend pick for income-focused investors. The oil and gas producer pays a monthly dividend of $0.061 per share, offering a yield of 6.6%, and has returned roughly $2.7 billion to shareholders through dividends since 2013. With a sustainable payout ratio of 20–25% and a long-term goal of 1–3% annual dividend growth, Whitecap is well-positioned to return significant cash to its shareholders.
Its focus on operational efficiency and high-return projects helps support steady earnings. At the same time, optimized drilling programs and high-quality assets strengthen its cash-flow profile. The recent acquisition of Veren further expands Whitecap’s scale and enhances its production base, adding depth to its portfolio and strengthening future growth potential.
In summary, Whitecap appears well-positioned to sustain its high yields over the long term.
High-yield stock #2: SmartCentres REIT
SmartCentres REIT (TSX:SRU.UN) is known for its stable monthly distributions and high yield. The real estate investment trust (REIT) offers a monthly dividend of $0.154 per unit, reflecting a yield above 7%. Notably, it operates 197 mixed-use properties located in high-traffic areas. This helps the REIT maintain a high occupancy rate (98.6% as of September 30, 2025), driving solid tenant demand. Moreover, its core retail portfolio and high-quality tenant base add stability to its operations.
SmartCentres experiences steady leasing activity, with renewals contributing to this momentum. Notably, 85% of the leases set to expire in 2025 have been renewed or finalized with strong rent growth. Furthermore, its rent collection rate remains exceptionally strong at 99%.
With rising rents, resilient occupancy, a strong development pipeline of mixed-use properties, a large land bank, and strong demand from quality retailers, SmartCentres appears well-positioned to sustain its monthly dividend payouts.
High-yield stock #3: Telus
Telus (TSX:T) is an attractive high-yield dividend stock to buy right now. The telecom giant has a solid track record of dividend payments and growth. It has distributed more than $24 billion in dividends since 2004 and raised its quarterly payouts multiple times over the past decade under its dividend-growth plan. It pays a quarterly dividend of $0.418 per share, reflecting a high yield of 8.2%.
Telus’s ability to steadily increase its customer base, focus on high-margin customers, offer attractive bundled services, and maintain low churn rates positions it well to deliver steady earnings and will likely drive its payouts. Moreover, the ongoing cost efficiencies, diversification of revenue, and expected moderation in capital expenditure position it well to pay and increase its dividend over time.
It maintains a sustainable payout ratio of 60–75% of free cash flow. Further, Telus aims to grow its dividend by 3–8% annually through 2028.
