Last month, the Bank of Canada lowered its key overnight interest rate from 2.5% to 2.25% – the lowest level since July 2022. In this low-rate environment, quality dividend stocks with attractive yields can help investors enhance their passive income. Their steady payouts also add resilience to portfolios amid ongoing economic uncertainty. With that in mind, here are my three top dividend picks.
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Enbridge
Enbridge (TSX: ENB) remains one of the best dividend stocks to add to your portfolio, thanks to its stable cash flows, consistent dividend growth, and attractive yield. Its tolling framework, take-or-pay contracts, long-term renewable power purchase agreements, and low-risk utility operations provide predictable cash flows regardless of market conditions. The company also has minimal exposure to commodity price fluctuations, with a large portion of earnings indexed to inflation. Backed by these steady cash flows, Enbridge has increased its dividend at an annualized rate of 9% for the past 30 years and currently offers a robust yield of 5.6%.
The Calgary-based energy infrastructure giant recently added $7 billion in new projects, expanding its secured capital backlog to $35 billion. Management plans to invest $9–$10 billion annually to advance these projects, with many set to come online through 2030. As these investments materialize, Enbridge expects mid-single-digit growth in EBITDA (earnings before interest, taxes, depreciation, and amortization), EPS (earnings per share), and DCF (discounted cash flows)/share through the end of the decade.
With these initiatives, the company anticipates returning $40–$45 billion to shareholders over the next five years. Considering its strong fundamentals and long-term growth visibility, I remain bullish on Enbridge.
Telus
Another high-yield Canadian dividend stock I’m bullish on is Telus (TSX: T), which has raised its dividend 29 times since May 2011 and currently offers an impressive yield of 9.2%. Like other major telecom players, Telus benefits from stable, recurring revenue generated through long-term subscription and service contracts, which support strong, predictable cash flows – and enable consistent dividend growth.
Demand for telecommunication services continues to rise due to the digitalization of businesses, rapid adoption of the Internet of Things (IoT), and the increasing prevalence of remote work and online learning. To meet this growing demand, Telus plans to invest $70 billion through 2029 to expand its 5G and broadband networks. The company also intends to use these investments to build AI (artificial intelligence) data centres and support various technology initiatives.
These long-term growth drivers strengthen Telus’s ability to sustain future dividend increases, making the stock an attractive buy for income-focused investors.
SmartCentres REIT
My final pick is SmartCentres REIT (TSX: SRU.UN), which offers monthly dividends with its yield currently standing at 7.1%. The Toronto-based REIT owns and operates 197 properties strategically located across Canada, giving roughly 90% of Canadians access to at least one of its stores within 10 kilometres. It also benefits from a strong tenant base, with most tenants possessing regional or national footprints and about 60% providing essential services. As a result, SmartCentres enjoys a healthy occupancy rate, which stood at 98.6% in its latest third-quarter results.
SmartCentres continues to grow its asset base, having opened three self-storage facilities this year, bringing its total to 14. Its projects under construction in Montreal and Laval are expected to open next year, while developments in Burnaby and Victoria are slated for 2027. Beyond these near-term projects, the REIT has a substantial development pipeline of roughly 86 million square feet across residential, retail, senior housing, self-storage, and office categories.
Given its strong growth pipeline, rising demand for retail space, and attractive yield, I remain bullish on SmartCentres.
