High-yield dividend stocks can provide an attractive source of passive income to beginners. However, a high dividend yield should not be the sole criterion for buying and holding stocks. Dividend payments are discretionary, and companies can reduce or eliminate them when earnings or cash flow deteriorate.
Thus, for beginners, the more important consideration is the quality of the business supporting the dividend. Companies with strong fundamentals, consistent free cash flow, manageable debt, resilient earnings, and sustainable payout ratios are better positioned to maintain dividends for years.
For beginners, here are two high-yield dividend stocks with a steady payout history and relatively high yield. These stocks are backed by fundamentally strong businesses and maintain sustainable payouts.
Source: Getty Images
High-yield dividend stock #1: SmartCentres REIT
SmartCentres REIT (TSX: SRU.UN) is a dependable high-yield stock for beginners. The real estate investment trust’s (REIT’s) diversified retail and mixed-use properties are concentrated in high-demand markets, supporting strong occupancy and leasing activity.
SmartCentres pays a monthly dividend of $0.154, yielding above 6.6% based on its August 26 closing price of $27.76.
SmartCentres REIT is well-positioned to sustain its payouts. Its operating metrics remain solid. The REIT’s occupancy was 98.1% as of June 30, 2026, while rent collections remained very high. SmartCentres has also completed about 80% of its 2026 lease renewals, with renewed leases being signed at materially higher rents. This combination of strong retention, rental-rate growth, and high occupancy should support net operating income (NOI) and funds from operations (FFO) growth and drive payouts.
Beyond its existing properties, the REIT has significant land holdings and a mixed-use development pipeline. These assets provide additional avenues for long-term growth.
Overall, SmartCentres’s high current yield, durable payouts, and strong operating fundamentals make it a compelling dividend stock for beginners.
High-yield dividend stock #2: Enbridge
Enbridge (TSX: ENB) is among the most reliable dividend payers on the TSX for beginners. The energy infrastructure company’s appeal comes less from high headline yield and more from the durability of the underlying business and payouts.
Enbridge has paid dividends for more than seven decades and has increased its annual distributions consistently since 1995. Currently, ENB stock offers a high yield of 5.6%.
Enbridge’s resilient business model and cash flow support its payouts. Nearly all of its earnings before interest, taxes, depreciation, and amortization (EBITDA) is generated from regulated assets or long-term take-or-pay contracts. This reduces the company’s exposure to commodity-price volatility.
Enbridge is targeting approximately 5% annual growth in adjusted EBITDA, adjusted earnings per share (EPS), and distributable cash flow (DCF) per share in the medium term, which should support its payouts. Growth is expected to come from new projects entering service and continued strength across its core infrastructure businesses.
The dividend also appears well supported by the company’s targeted 60%–70% DCF payout ratio.
Enbridge’s longer-term growth prospects are supported by a $41 billion secured capital backlog, high utilization across its pipeline network, and investments in expansion projects. Structural increases in energy demand could provide additional support, particularly from data centre development, rising natural-gas consumption, and continued investment in renewable energy infrastructure.
Overall, the energy infrastructure company is an attractive high-yield stock to hold for decades.
