Investors searching for an affordable way to build a passive income stream could consider high-yield dividend stocks. With interest rates trending lower, high-yield dividend stocks are screaming buys right now.
However, investors should take caution. A payout that looks too good to be true often signals that a company is facing headwinds. Moreover, a decline in stock prices due to financial pressure increases yields.
The good news is that not every high-yield Canadian stock falls into that category. A few fundamentally strong companies offer high and sustainable yields, which can enhance the income potential of your portfolio.
With this backdrop, here are three high-yield stocks that are screaming buys right now.
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High-yield dividend stock #1: Enbridge
With solid dividend payments, a stable growth history, and a high yield of 5.6%, Enbridge (TSX:ENB) is a no-brainer stock for income investors. The energy infrastructure giant has been paying dividends for over seven decades. Moreover, ENB’s shareholders have enjoyed 30 consecutive years of dividend growth.
Enbridge’s payouts are supported by its highly diversified income stream and low-risk commercial framework. It benefits from consistently high pipeline utilization and long-term contracts that reduce exposure to commodity price swings. Roughly 98% of its earnings come from regulated or take-or-pay agreements, providing the foundation for future dividend growth. The company also maintains a disciplined payout ratio, distributing only 60–70% of its cash flow, which leaves ample room to invest in expansion projects.
Looking ahead, Enbridge is well-positioned to deliver steady growth as demand for its network remains strong. Enbridge is investing across both traditional and renewable avenues to meet rising energy demand. At the same time, it is focused on operational efficiencies and cost-effective expansions, which will cushion its earnings and dividend distributions.
Overall, its diverse revenue streams, contractual framework, and AI-driven opportunities position it well to pay and increase its dividends.
High-yield dividend stock #2: Whitecap Resources
Whitecap Resources (TSX:WCP) is an attractive high-yield dividend stock to consider now. The Canadian energy producer has consistently distributed significant cash to shareholders through dividends. Moreover, it offers monthly payouts.
It has paid about $2.7 billion in dividends between January 2013 and September 2025. Moreover, Whitecap Resources offers a high yield of over 6.2%.
Looking ahead, this oil and gas producer continues to focus on optimizing drilling performance, reducing costs, and maintaining disciplined capital spending. These efforts are designed to keep cash flow strong even when energy prices fluctuate. With a diversified portfolio of assets and a strategy focused on deploying capital into the highest-return projects, Whitecap aims for sustainable growth.
Further, its strong balance sheet is another key advantage. Low leverage and a strong inventory of high-quality drilling locations give the company a long runway for future expansion while maintaining shareholder returns. Whitecap’s recent acquisition of Veren brings additional scale and premium assets, broadening its base of long-life, high-productivity projects.
Whitecap maintains a low and sustainable payout ratio of 20–25% for its base dividend. Moreover, it targets an annual 1–3% increase in its base dividend for the long term.
High-yield dividend stock #3: Telus
Telus (TSX:T) is a compelling high-yield investment for income-focused investors. The Canadian telecom giant has a long record of higher payouts, backed by its dividend growth program launched in 2011. Since 2004, it has returned more than $28 billion through dividends and buybacks, with over $23 billion paid in dividends alone.
The company recently extended its dividend growth plan through 2028, aiming for annual increases of 3–8%. With a quarterly payout of $0.418 per share, Telus currently offers an appealing yield of over 9%.
Its high yield is supported by its ability to grow earnings and a sustainable payout ratio of 60–75%. Telus continues to expand its PureFibre network and offers attractive bundled services across Canada, driving customer loyalty and maintaining a low postpaid churn rate. Looking ahead, its focus on growing margin accretive customers, expected moderation in capital expenditures, and steady earnings growth will drive its payouts.
