Canadian equity markets have come under pressure this week, with the S&P/TSX Composite Index slipping 0.8% amid weakness in the energy sector and ongoing uncertainty around the future direction of U.S. interest rates. Against this uncertain backdrop and in a low-interest-rate environment, investors may consider high-yield stocks to enhance passive income while reinforcing portfolio stability. With that in mind, let’s take a closer look at three high-yield Canadian stocks worth considering.
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Enbridge
Enbridge (TSX:ENB) stands out as an attractive option for income-focused investors, supported by its highly contracted business model, stable and predictable cash flows, compelling dividend yield, and solid growth outlook. The diversified energy infrastructure company operates more than 200 asset streams and businesses, with approximately 98% of its EBITDA (earnings before interest, taxes, depreciation, and amortization) generated from regulated assets or long-term take-or-pay contracts.
As a result, Enbridge has limited exposure to commodity price fluctuations, while more than 80% of its adjusted EBITDA is indexed to inflation. These favourable characteristics underpin strong and reliable cash flows, enabling the company to pay dividends for 70 consecutive years and increase its dividend for 31 straight years. Enbridge currently offers an attractive dividend yield of about 6%.
On the growth front, the company added $7 billion worth of new projects this year, lifting its secured project backlog to $35 billion. Management plans to invest approximately $9–$10 billion annually to advance these projects, many of which are expected to come into service by 2029. Supported by this visible growth pipeline, Enbridge expects to return $40–$45 billion to shareholders over the next five years, reinforcing the sustainability of its dividend and long-term income potential.
Canadian Natural Resources
Another high-yield dividend stock I consider an attractive buy is Canadian Natural Resources (TSX:CNQ). The oil and natural gas producer operates a diversified and well-balanced asset base that requires relatively low sustaining capital. Combined with its efficient and disciplined operations, this has helped keep costs in check, lower its breakeven point, and generate strong and resilient cash flows. Supported by strong cash flow, the company has sustained 25 years of consecutive dividend growth at an impressive 21% compound annual growth rate. Currently, CNQ stock offers a forward dividend yield of approximately 5.5%.
In addition, CNQ holds an extensive portfolio of low-risk, high-quality reserves, with a proven reserve life index of about 32 years, providing long-term production visibility. The company plans to invest roughly $6.7 billion this year and $6.4 billion next year to enhance its production capabilities. As a result, management expects production to grow by 6.8% this year and a further 3.2% in 2026. Given its low breakeven costs, higher production volumes should translate into meaningful growth in both revenue and earnings.
Taken together, CNQ’s solid balance sheet, disciplined capital allocation, consistent operating performance, and healthy growth outlook position the company to continue delivering attractive and sustainable dividend growth for income-focused investors.
SmartCentres Real Estate Investment Trust
My final pick is SmartCentres Real Estate Investment Trust (TSX:SRU.UN). It owns and operates 197 strategically located properties and benefits from a strong, well-diversified tenant base, enabling the REIT to maintain a consistently high occupancy rate. In its most recently reported third quarter, SmartCentres leased 68,000 square feet of vacant space, while occupancy remained robust at 98.6%. Same-property net operating income also increased by 4.6% during the quarter. In addition, the company renewed 85% of leases maturing this year, achieving healthy rent growth of 8.4%.
Alongside this solid operating performance, the Toronto-based REIT continues to expand its asset base. It placed three new self-storage facilities into service this year, bringing the total number of operating self-storage properties to 14. Management expects to open two additional facilities in Quebec next year, with two more in British Columbia scheduled to come online in 2027. Looking further ahead, SmartCentres maintains a robust development pipeline totaling 86.2 million square feet, including 0.8 million square feet currently under construction.
Given its strong fundamentals and visible growth runway, I believe SmartCentres is well-positioned to sustain its dividend payments. The REIT currently offers an attractive forward dividend yield of approximately 7.2%, making it a compelling option for income-focused investors.
