3 Ultra-High-Yield Dividend Stocks I’m Still Buying

A fat yield can look tempting to any investor. However, the better high-yield stocks do more than flash a big number. The good ones cover their payouts with steady cash flow, keep debt from getting out of hand, and still have a reason to grow from here. That’s why today we’re looking at dividend stocks that look sustainable, rather than ones that look flashy for five minutes.

DIV

Diversified Royalty (TSX:DIV) owns royalty streams tied to brands such as Mr. Lube + Tires, Oxford Learning, BarBurrito, Nurse Next Door, and Cheba Hut. It collects cash from top-line sales instead of running those businesses itself. In 2025, revenue rose 8.9% to $70.8 million, adjusted revenue climbed 8.4% to $76.1 million, and distributable cash increased 12.7% to $50.5 million, or $0.30 per share. Right now, the dividend stock offers a yield around 6.5% at writing.

What keeps DIV relevant now is that it kept adding growth on top of the income story. Last year it added Cheba Hut to the portfolio, and this month it announced an incremental royalty stream from Cheba Hut that boosts monthly royalty income again. The portfolio still has weak spots, including AIR MILES softness and royalty relief at Sutton, so this isn’t a perfect set-it-and-forget-it name. Even so, weighted-average organic royalty growth hit 4.1% in 2025, and the payout ratio improved to 88.1%, which makes this one feel more dependable than many yield plays in the same range.

CHE

Chemtrade Logistics Income Fund (TSX:CHE.UN) sells essential chemicals used in water treatment, industrial processing, and pulp and paper, so demand doesn’t vanish overnight. In 2025, it posted record annual results, with net earnings of $139.4 million, cash flow from operating activities of $355.1 million, and distributable cash after maintenance capital of $228 million. Fourth-quarter revenue rose 12.4% year over year to $502 million, even though quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) slipped 9.6% to $98.2 million. With shares trading at 12 times earnings, it currently holds a yield at 4%.

The income story still looks like it has room to breathe. Management raised the monthly distribution again in January 2026 to $0.06 per unit, marking a third straight annual increase, and kept 2026 adjusted EBITDA guidance at $485 million to $525 million. That’s encouraging, especially with a 2025 payout ratio of about 35% and an expected 2026 payout ratio near 45% based on the midpoint of guidance. The main risk is that chemical pricing and margins can swing, which already showed up in the weaker fourth-quarter EBITDA. Yet the cash generation still gives this dividend some muscle.

TF

Timbercreek Financial (TSX:TF) is a mortgage lender focused on commercial real estate, offering structured financing to experienced property owners and investors. In the fourth quarter of 2025, net investment income came in at $25.7 million, while distributable income was $15 million, or $0.18 per share. The dividend stock trades at 16 times earnings with a 10% yield, so the market is still pricing in a fair bit of caution.

Why buy it anyway? Because the business looks like it’s moving through a rough patch instead of falling apart. Management said the outlook for commercial real estate is getting more constructive, the transaction pipeline remains strong, and net mortgage investments grew to about $1.24 billion at year-end 2025 from roughly $1.09 billion a year earlier. This one carries the most risk here, since credit issues and a weak property market can hit sentiment fast. However a discounted valuation and a double-digit yield make it interesting for investors who can handle a bumpier ride.

Bottom line

If I’m still buying high-yield names today, I want a mix of reliable cash flow and a reason for the market to warm up later with $7,000 in each.

None are risk-free, but all three dividend stocks have enough behind the payout to stay on my watch list.