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

These three TSX high-yielders try to back up their payouts with real cash flow, not just a flashy headline yield.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 23, 8:30 pm EDT

| More on: CHE.UNDIVTF

Key Points

High yield is only worth owning when the payout is covered, debt stays manageable, and there’s a path to growth.
Diversified Royalty and Chemtrade look more sustainable because cash flow coverage and payout ratios are improving.
Timbercreek pays the most, but it carries the biggest credit risk if commercial real estate weakens.

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.

Concept of multiple streams of income — Source: Getty Images

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.