Amid persistent inflation and heightened geopolitical uncertainty, generating a reliable stream of passive income has become increasingly important for investors. Consistent income can provide greater financial stability while helping offset the erosion of purchasing power caused by rising prices. Moreover, reinvesting these distributions can further enhance long-term wealth creation through compounding. Against this backdrop, high-yield dividend stocks can offer an attractive combination of recurring income and potential capital appreciation.
With that in mind, let’s examine three high-yield dividend stocks that currently present compelling buying opportunities.
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Automotive Properties Real Estate Investment Trust
My first pick is Automotive Properties Real Estate Investment Trust (TSX:APR.UN), which owns and operates 95 automotive dealerships, service centres, and original equipment manufacturer (OEM) properties across Canada and the United States. The portfolio encompasses approximately 3.5 million square feet of gross leasable area and benefits from strategically located properties and established tenants, supporting strong occupancy and rent-collection rates.
The REIT’s lease agreements typically include contractual rent escalators, with some rents linked to the Consumer Price Index (CPI), providing inflation protection and supporting steady revenue growth. These predictable cash flows have enabled Automotive Properties to maintain an attractive distribution profile. The REIT currently pays a monthly distribution of $0.0699 per unit, translating into a compelling yield of 6.87%.
Looking ahead, the highly fragmented automotive dealership market in Canada and the United States provides Automotive Properties with a meaningful runway for portfolio expansion through acquisitions. With approximately $0.7 million in liquidity and 11 unencumbered properties valued at roughly $166.7 million, the REIT retains additional financial flexibility to pursue growth opportunities. These factors could support long-term portfolio expansion while preserving its attractive income-generating profile.
Enbridge
My second pick is Enbridge (TSX:ENB), a diversified energy infrastructure company with more than 200 assets spanning midstream energy, natural gas utilities, and renewable energy. About 98% of its earnings come from regulated assets and long-term take-or-pay agreements, while inflation-linked mechanisms protect roughly 80% of its earnings. This highly predictable business model supports resilient cash flows across economic cycles, enabling Enbridge to maintain a long history of dividend payments spanning more than 70 years and raise its dividend for 31 consecutive years. The company currently pays a quarterly dividend of $0.97 per share, translating into a forward yield of 5.51%.
Looking ahead, Enbridge is expanding its asset base through a $41 billion secured capital investment program as rising oil and natural gas production across North America drives demand for energy infrastructure. These investments provide a strong foundation for future growth, with management expecting earnings and cash flow to increase at an annualized rate of approximately 5% in the coming years. Furthermore, Enbridge expects to return approximately $40 billion-$45 billion to shareholders through the end of this decade, reinforcing its appeal as a high-quality, income-generating investment.
Peyto Exploration & Development
My final pick is Peyto Exploration & Development (TSX:PEY), a leading natural gas and natural gas liquids producer focused on Alberta. Its low-cost operations, long-life reserve base, disciplined capital allocation, and efficient operating model have enabled resilient financial performance across economic cycles and varying commodity price environments. Reflecting this strong track record, Peyto has returned approximately $3.5 billion, or $24.63 per share, to shareholders through dividends since 1992. The company currently pays a monthly dividend of $0.12 per share, translating into an attractive forward yield of 5.69%.
Looking ahead, elevated geopolitical tensions in the Middle East could continue to support oil and natural gas prices, creating a favourable backdrop for energy producers. Meanwhile, Peyto is investing to expand its production capacity, with plans to spend approximately $540 million-$560 million this year, including the drilling of 70-80 net horizontal wells. The company also benefits from a substantial reserve base of approximately 1.5 billion barrels of oil equivalent, providing considerable visibility into its long-term production potential. Given its low-cost operating structure, disciplined capital allocation, robust reserves, and favourable industry fundamentals, Peyto appears well positioned to sustain its strong cash-flow generation and continue rewarding shareholders with attractive dividend income over the long term.
