For retirees, the primary objective of investing often shifts from aggressive capital growth to steady income and capital preservation. One cost-efficient way to achieve this is investing in high-yield dividend stocks, which can provide consistent income while still offering potential for long-term capital appreciation.
That said, the dividend is not guaranteed. For this reason, retirees should consider companies with strong underlying fundamentals. Businesses that consistently generate steady earnings and cash flows, maintain healthy balance sheets, and have a sustainable payout ratio are generally better positioned to support reliable dividend payments over time.
Against this background, here are two high-yield dividend stocks Canadian retirees might want to consider.
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High-yield dividend stock #1: Enbridge
Enbridge (TSX: ENB) is one of the top high-yield stocks Canadian retirees may want to consider. The energy infrastructure giant has a solid history of uninterrupted dividend payments. For instance, it paid dividends for more than seven decades. Moreover, since 1995, Enbridge has increased its dividend at a compound annual growth rate of about 9%. Its payout history reflects its ability to navigate commodity cycles and economic downturns while consistently rewarding investors.
Looking ahead, Enbridge’s dividend payments and high yield appear well-covered. It generates most of its earnings from regulated assets and long-term take-or-pay contracts. This operating structure helps shield Enbridge’s cash flow from fluctuations in commodity prices. As a result, the majority of its EBITDA remains relatively stable, supporting predictable distributable cash flow (DCF) and dependable dividend payments.
Inflation-linked earnings further enhance this stability. Much of Enbridge’s EBITDA is indexed to inflation, providing a natural hedge against rising costs. The company also operates one of North America’s largest pipeline and energy infrastructure networks, connecting major supply basins with key demand centres. This scale supports high asset utilization and positions the business to benefit from long-term energy demand.
Enbridge currently pays a quarterly dividend of $0.97 per share, yielding roughly 5.1%. With diversified operations spanning liquids pipelines, gas distribution and storage, regulated utilities, and emerging low-carbon energy investments, management expects earnings, DCF, and dividends to grow at a mid-single-digit pace. Further, a targeted payout ratio of 60%–70% of DCF supports the sustainability of future dividend growth.
High-yield dividend stock #2: SmartCentres REIT
SmartCentres REIT (TSX: SRU.UN) is another high-yield, reliable dividend stock for retirees. The real estate investment trust pays a monthly dividend of $0.154 per unit, yielding 6.8% annually. Its consistent payout history and stable operating performance make the REIT a reliable income-generating investment.
SmartCentres’ future distributions are likely to be supported by its high-quality real estate portfolio, which continues to generate solid net operating income. Most of the REIT’s properties are located in prime retail locations, helping maintain strong leasing demand and high renewal rates. These factors contribute to steady rental income and dependable cash flow.
Operational performance remains robust, driven by strong customer traffic across its retail centres. This environment has also supported strategic diversification as the REIT expands into complementary asset classes. Its premium locations, in particular, attract significant foot traffic, strengthening tenant performance and supporting overall asset values.
SmartCentres finished 2025 with an occupancy rate of 98.6%, reflecting sustained demand for its properties. Leasing activity remained strong throughout the year, with continued demand for newly developed retail space. Lease renewals produced rental rate growth of 8.4%, excluding anchor tenants, while rent collection exceeded 99% of total revenue. These metrics show the strength of its business model and tenant base.
The REIT is focused on expanding its revenue base through a mixed-use development pipeline. Backed by substantial land holdings and a solid balance sheet, the REIT is well-positioned to support long-term growth while maintaining reliable dividend distributions.
