In today’s uncertain economic environment, building passive income has become increasingly important. It can provide financial stability while helping investors keep pace with inflation. Dividend-paying stocks offer a simple and cost-effective way to generate steady income, and reinvesting these payouts can further enhance long-term returns. Against this backdrop, here are four top dividend stocks currently offering yields above 3.5%.
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Enbridge
With its consistent dividend growth, attractive yield, and strong long-term outlook, Enbridge (TSX:ENB) stands out as a compelling choice for income-focused investors. The diversified energy infrastructure company generates the majority of its earnings from regulated assets and long-term take-or-pay contracts, helping shield its financials from market volatility. Additionally, about 80% of its earnings are inflation-indexed, providing a natural hedge against rising costs. Backed by stable cash flows, Enbridge has paid dividends for more than 70 years and increased them for 31 consecutive years, with a current forward yield of around 5.15%.
Looking ahead, the company has identified $50 billion in growth opportunities and plans to invest $10–$11 billion annually to support these projects. Combined with its highly contracted business model, these investments could drive steady cash flow growth, positioning Enbridge to sustain its track record of dividend increases in the years ahead.
Bank of Nova Scotia
Second on my list is Bank of Nova Scotia (TSX:BNS), which currently offers an attractive dividend yield of around 4.56%. The bank provides a wide range of financial services in nearly 55 countries, and its diversified revenue streams help sustain stable financial performance and cash flows through different economic cycles. Backed by this consistency, Scotiabank has been paying dividends since 1833.
More recently, the company’s financial performance has shown signs of improvement, with adjusted earnings per share (EPS) rising 16.5% in the fourth quarter. Its common equity tier-one (CET1) ratio also strengthened by 10 basis points to 13.3%, driven by higher retained earnings and the divestiture of operations in Colombia, Costa Rica, and Panama. At the same time, the bank is strategically repositioning its business by focusing more on North America while reducing exposure to higher-risk Latin American markets. This shift could streamline operations, boost profitability, and support more durable dividend growth over the long term.
Canadian Natural Resources
Another top dividend stock to consider is Canadian Natural Resources (TSX:CNQ), which has delivered impressive dividend growth of around 20% annually over the past 26 years. The company benefits from a large base of low-risk, high-value reserves, while its efficient operations have helped keep costs low, supporting strong margins and robust cash flows. These solid fundamentals have enabled CNQ to consistently increase its dividend at a healthy pace, with a current forward yield of about 3.68%.
Looking ahead, despite the global shift toward cleaner energy, oil and natural gas could remain key components of the energy mix for years to come, thereby continuing to support CNQ’s business. The company also holds an extensive reserve base of over five billion barrels of oil equivalent, primarily comprising high-value petroleum assets. In addition, it plans to invest $6.4 billion this year to enhance its production capabilities. Supported by a favourable commodity price environment and ongoing expansion efforts, CNQ appears well-positioned to maintain its strong dividend-growth trajectory.
SmartCentres Real Estate Investment Trust
My final pick is SmartCentres Real Estate Investment Trust (TSX:SRU.UN), which currently offers an attractive forward dividend yield of around 6.94%. Supported by a portfolio of strategically located properties and a strong tenant base—where about 95% of tenants have regional or national presence and roughly 60% provide essential services—the REIT maintains healthy occupancy levels even during challenging market conditions. Rising net rental income and adjusted funds from operations, driven by lease-up activity and higher net recoveries, have enabled it to deliver consistent and appealing payouts to unitholders.
Looking ahead, SmartCentres continues to expand its portfolio with a robust development pipeline of approximately 87.4 million square feet, including about 0.8 million square feet currently under construction. Backed by improving financial performance and ongoing expansion initiatives, the REIT appears well-positioned to support future growth while continuing to generate attractive income for investors.
