Dividend stocks can boost overall returns through a combination of capital appreciation and steady income streams. Backed by well-established businesses with reliable cash flows and consistent payouts, these companies also add stability during periods of market volatility. Additionally, reinvesting dividends can further enhance long-term gains. Meanwhile, investors should be cautious when choosing stocks, as dividends are not guaranteed.
With this in mind, here are three high-yield Canadian dividend stocks that present compelling buying opportunities.
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Enbridge
Enbridge (TSX: ENB) is a top dividend stock to consider for its resilient business model, steady dividend growth, and attractive yield. The company’s largely contracted operations and inflation-linked earnings help insulate its financial performance from market volatility, enabling the company to maintain and consistently increase its payouts. Enbridge has paid uninterrupted dividends for more than 70 years and raised its dividend for 31 consecutive years. It currently pays a quarterly dividend of $0.97 per share, yielding about 5.3%.
Looking ahead, Enbridge continues to expand its asset base to meet growing demand for its infrastructure and services, supported by rising oil and natural gas production and consumption across North America. The company is also advancing its $39 billion secured capital program, with projects expected to come online through 2029. Combined with its strong financial position, these growth initiatives position Enbridge to sustain and potentially grow its dividend payouts over the long term.
Bank of Nova Scotia
Bank of Nova Scotia (TSX: BNS) is another solid choice for income-focused investors, supported by its diversified revenue streams and consistent dividend payouts. Operating across multiple countries and offering a broad range of financial services, the bank delivers stable, reliable financial results. Backed by these strong cash flows, the bank has paid dividends since 1833 and currently offers a forward yield of about 4.2%.
Strategically, the bank is prioritizing the expansion of its higher-margin, lower-risk North American operations while scaling back less-profitable Latin American operations. This shift could enhance earnings quality and improve cash flow stability over time. Coupled with these initiatives, improving financial and operating metrics could support future dividend growth. Additionally, with a reasonable forward price-to-earnings multiple of 12.4, BNS appears attractively valued for long-term investors.
SmartCenters Real Estate Investment Trust
SmartCentres Real Estate Investment Trust (TSX: SRU.UN) is my final pick, offering an attractive mix of stability and income. The REIT owns and operates 198 strategically located properties, with roughly 90% of Canadians living within 10 kilometres of one of its centers. Its tenant base is also strong, with about 95% of tenants having regional or national presence and nearly 60% providing essential services. This combination supports a consistently high occupancy rate, even during broader market fluctuations.
In addition to stable occupancy, consistent lease renewals, ongoing lease-up activity, and rising rental rates have helped sustain its financial performance and cash flows. These factors enable the REIT to deliver attractive income, with a current forward yield of about 6.5%.
Looking ahead, demand for retail space remains resilient, supported by economic growth and limited new supply due to elevated construction costs. At the same time, SmartCentres continues to expand its portfolio, with approximately 0.8 million square feet under development across retail, residential, seniors housing, and self-storage projects. Over the long term, its extensive 87.4 million-square-foot development pipeline could drive financial growth and support continued dividend payments.
