Which Canadian Stocks Pay the Highest Dividend Yields Right Now?

A 7%+ yield can be real income, but it can also be a flashing warning sign if cash flow and debt don’t support it.

Key Points
  • Use the latest declared regular payout, annualize it, and divide by today’s price, then confirm coverage and leverage.
  • BTB’s payout looks best covered today, while Allied’s is stretched and could face another cut.
  • BCE’s yield is lower but broader and better covered post-reset, though leverage and competition still matter.

A 7.7% yield can turn a $10,000 investment into roughly $770 of annual income. That sounds useful, until the stock cuts its payout and the share price falls with it.

Yield tables are particularly good at hiding this danger. Some use dividends paid over the last 12 months instead of the payout investors can reasonably expect over the next 12. An outdated data screen can still make its yield look far higher than the 7.7% investors are actually being offered.

House models and one with REIT real estate investment trust.

Source: Getty Images

Screen high yields

The simple, useful calculation is as follows: the latest declared regular payout, annualized, divided by the current share price. Investors should then check cash-flow coverage, debt, and operating momentum before treating a large yield as income.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
BTB.UN$3.912,557$0.30$767.10Monthly$9,997.87
AP.UN$9.381,066$0.72$767.52Monthly$9,999.08
BCE$30.86324$1.75$567.00Quarterly$9,998.64

This screen excludes exchange-traded funds (ETF), split-share corporations, special dividends, and illiquid penny stocks. Among reasonably established TSX companies and real estate investment trusts (REIT), these are three richer yields worth investigating. They are not automatically the best Canadian dividend stocks, they simply pay a lot at current prices. So, are they worth the investment?

BTB

BTB REIT (TSX: BTB.UN) owns industrial, necessity-based retail and suburban office properties. Its latest move was another step toward industrial real estate, including three fully leased Alberta acquisitions expected to add $2.5 million of annualized net operating income (NOI).

Second-quarter rental revenue rose 4.5%, while adjusted funds from operations (AFFO) reached $0.098 per unit. The adjusted AFFO payout ratio improved to 76.5%. At $3.91, the units also trade roughly 30% below BTB’s $5.56 net asset value per unit. The catch is a 58.1% total debt ratio and only 91.3% occupancy, leaving little room for sloppy execution.

AP

Allied Properties REIT (TSX: AP.UN) owns distinctive urban workspaces in major Canadian cities. It secured about $321 million of 2026 property-sale proceeds, including firm transactions, with the cash earmarked for debt reduction.

Leased area reached 86.7%, and the $9.38 unit price sits about 51% below the reported $18.97 net asset value. That discount is hardly free. Second-quarter same-asset net operating income fell 12.6%, net debt remained 12 times adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), and the adjusted AFFO payout ratio was 105.7%. Allied expects distributions to exceed available cash in the near term, so another reduction cannot be dismissed.

BCE

BCE (TSX: BCE) operates wireless, fibre internet, and media businesses. The Ziply Fiber acquisition added a U.S. growth platform, while ongoing cost cuts helped wireline adjusted EBITDA margins expand 110 basis points to 42.7% in the latest quarter.

Reported revenue rose 1.5% for BCE stock, although it declined 2% excluding Ziply. Near $30.86, BCE stock trades around 8.8 times the midpoint of 2026 adjusted earnings guidance. The $0.44 quarterly dividend is far better covered after 2025’s reset, yet leverage near 3.8 times EBITDA and aggressive telecom pricing remain real risks.

Bottom line

BTB offers the strongest current coverage, Allied the deepest discount, and BCE stock the broadest business. None deserves a purchase based on yield alone. A smaller starting position, room to add after results and a diversified portfolio can turn a tempting payout into a more durable income plan.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

warehouse worker takes inventory in storage room
Dividend Stocks

REITs Are Falling as Bond Yields Rise: This Canadian Landlord Looks Better After the Selloff

Granite REIT has fallen about 17% from its 52-week high as higher bond yields pressure real estate stocks.

Read more »

dividend stocks are a good way to earn passive income
Dividend Stocks

How to Set Passive Income Goals You Can Actually Reach

Vanguard FTSE Canadian High Dividend Yield ETF (TSX:VDY) and other dividend stocks to consider for big passive income.

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

I’m passing on Telus After its 55% Dividend Cut: Here’s What I’d Watch Instead

Telus (TSX:T) is getting cheaper, but one TSX telco still looks like a better overall value.

Read more »

Concept of rent, search, purchase real estate, REIT
Dividend Stocks

Housing Needs More Supply: This Canadian Builder Doesn’t Need Home Prices to Boom

Canada needs dramatically more homes, even if home prices don’t rise.

Read more »

some REITs give investors exposure to commercial real estate
Dividend Stocks

For Monthly Income: A 7% Dividend Stock to Consider

This high yield stock is backed by solid fundamentals, such as strong balance sheet, dependable cash flows, and steady distributions.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

A 7% Dividend All-Star I’d Buy First in My TFSA

Given its attractive yield, stable underlying business, and reasonable valuation, SmartCentres would be an appealing opportunity for income-seeking investors.

Read more »

Agricultural harvesting at the last light of day, aerial view.
Dividend Stocks

Canada Wants $70 Billion in Trade With India: I’d Watch This TSX Stock

Nutrien gives Canada’s India trade ambitions an existing commercial engine, but profitable fertilizer sales still have to follow.

Read more »

you're never too young or old to start investing in stocks
Dividend Stocks

Side Hustle Taxes in Canada: What You Can Deduct

You can deduct the reasonable business portion of expenses incurred to earn side-hustle income. Consider investing this extra income for…

Read more »