3 TSX Stocks Yielding Over 5% That Appear to Have the Strength to Back It Up

These three TSX dividend stocks offer yields above 5% and solid fundamentals to match.

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Key Points
  • Peyto Exploration & Development (TSX:PEY) stands out with strong cash flow, steady production growth, and a reliable monthly dividend.
  • MCAN Mortgage (TSX:MKP) offers a high yield backed by growing assets and strong mortgage demand despite slight earnings pressure.
  • Bridgemarq Real Estate Services (TSX:BRE) delivers an eye-catching yield with revenue growth and a stable agent network supporting its business.

Most investors are always on the hunt for top stocks offering a healthy dividend yield. But it’s also important for Foolish Investors to ensure that the companies behind these yields have the financial strength and growth prospects to sustain them. Let’s dive into three TSX-listed dividend stocks that are not only offering attractive dividends but also showcasing robust fundamentals and promising future outlooks.

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Peyto Exploration & Development

First up, let’s talk about Peyto Exploration & Development (TSX: PEY). This Calgary-based energy company is deeply involved in the development and production of natural gas, oil, and natural gas liquids in Alberta’s deep basin. With a current stock price of $25.74 per share and a market cap of $5.3 billion, Peyto has seen some impressive performance over the last year, with its stock rising by 39%. The company offers a monthly dividend yielding 5.1%, which is quite attractive for income-focused investors.

In the fourth quarter of 2025, the company generated $245 million in funds from operations (FFO) and $102 million of free funds flow. Its annual FFO for 2025 totalled $860.5 million, with annual free funds flow at $375.2 million. Key factors behind Peyto’s recent performance included record production volumes, improved margins, disciplined hedging, and continued shareholder returns.

Moreover, the company’s long-term growth initiatives are centred on maximizing shareholder returns through low-cost, long-life natural gas plays, strict cost control, and hedging to mitigate price volatility. It plans to operate 4 to 5 rigs for the year after spring break-up, focusing on Notikewin, Falher, and Wilrich targets. With a 27-year average financial benefit margin of 47% of sales, this TSX looks well-positioned for sustained growth.

MCAN Mortgage

Next, let’s look at MCAN Mortgage (TSX: MKP). This Toronto-based company operates as a mortgage investment corporation, investing in a diversified portfolio of Canadian mortgages and other types of securities. With a current stock price of $23.11 per share and a market cap of $937.9 million, MCAN has seen its stock rise by 25% over the last year. The company offers a quarterly dividend yielding an impressive 7.4%.

Last year, MCAN Mortgage’s net income fell slightly by 3% YoY (year-over-year) to $74.9 million. Nevertheless, the company’s total assets under management grew by 30% YoY to $7.8 billion, driven by strong mortgage originations. Key factors behind MCAN Mortgage’s performance included a significant increase in uninsured residential mortgage originations, which rose 33% in 2025, and insured residential mortgages, which increased 38%.

MCAN Mortgage’s long-term growth initiatives include investing in new products and infrastructure with a multi-year focus on sustainable, profitable growth. These initiatives reflect MCAN Mortgage’s commitment to accelerating growth while maintaining financial stability.

Bridgemarq Real Estate Services

Lastly, let’s talk about Bridgemarq Real Estate Services (TSX: BRE). Based in North York, this company provides services to residential real estate brokers and a network of approximately 21,000 realtors through its franchise network and corporately owned brokerages. With a current stock price of $13.67 per share and a market cap of $129.6 million, Bridgemarq Real Estate Services has seen its stock rise by 3.4% so far in 2026, despite the broader market sell-off. The company also offers a monthly dividend yielding an attractive 9.9%.

Bridgemarq’s revenue rose to $407.4 million in 2025 from $350.7 million in 2024, driven by the inclusion of acquired business results, fee increases, and growth in agent count.

In addition, the company is continuing to focus on expanding its network of real estate professionals and enhancing its service offerings to remain competitive in the market. Despite declines in the Canadian residential real estate market, Bridgemarq’s service offerings remain valued by agents as critical tools for success amid market headwinds – making it an attractive TSX dividend stock to consider.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bridgemarq Real Estate Services. The Motley Fool has a disclosure policy.

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