High dividend yields can be tempting, especially for new investors seeking passive income. But a generous yield alone doesn’t make a stock a great buy. You may want to prioritize companies with strong cash flows, manageable debt, and solid growth potential that can back their payouts over time.
In this article, I’ll share three TSX dividend stocks offering generous yields and explain why I’d consider buying them for long-term income.
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Cardinal Energy stock
Let’s start with Cardinal Energy (TSX: CJ), a Calgary-based oil and natural gas producer that offers an attractive combination of monthly dividends and growth potential. Despite losing about 15% of its value so far in November due to heightened market volatility, CJ stock is still up 29% year-to-date. As a result, it currently trades at $11.18 per share with a market cap of $2 billion and offers a 6.5% annualized dividend yield.
Interestingly, Cardinal’s underlying business is performing much better than its recent share price weakness might suggest. In the September quarter, the energy producer’s average daily production rose 21% year-over-year (YoY) to 25,127 barrels of oil equivalent, mainly supported by its Reford project.
Besides higher production, a 32% YoY increase in crude oil prices helped the company’s adjusted funds flow surge 149%. Its quarterly free cash flow also jumped 176% to $57.9 million, allowing it to fund dividends while reducing debt.
More importantly, Cardinal’s net debt declined 41% YoY in the latest quarter, strengthening its financial flexibility. Meanwhile, its expanded Reford 2 project, which is expected to begin steam injection in summer 2027, could support further production growth.
With improving cash flows, lower debt, and promising expansion projects, Cardinal looks like an attractive high-yield TSX dividend stock to buy right now.
Cogeco Communications stock
Another high-yield dividend stock worth considering right now is Cogeco Communications (TSX: CCA), especially after its recent share price weakness. This Montréal-based telecom firm provides internet, television, and phone services across Canada and the United States.
After declining 20% this year, CCA stock currently trades at $53.50 per share with a market cap of $2.3 billion. At this price, it offers an impressive 7.4% annualized dividend yield.
While competitive pressures have weighed on Cogeco’s U.S. operations lately, its Canadian business continues to show resilience. In the August 2026 quarter, the company’s total revenue slipped by about 2% YoY, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) fell 3.8%.
Nevertheless, its Canadian telecom segment delivered positive revenue growth and a 3.3% increase in adjusted EBITDA. Despite these challenges, Cogeco’s annual free cash flow climbed 7.1%.
Interestingly, the company also recently raised its quarterly dividend by 2%, marking its 23rd consecutive year of dividend increases. I expect its expanding Canadian wireless operations and ongoing cost-saving efforts to support a gradual recovery.
Given its impressive dividend history and high yield, CCA stock could be a rewarding long-term investment for patient income investors.
South Bow stock
If you’re looking for another attractive dividend payer on the Toronto Stock Exchange, South Bow (TSX: SOBO) could be an excellent addition to your portfolio. This Calgary-based energy infrastructure company operates crude oil pipelines connecting Canadian production regions with major U.S. markets.
After rallying 23% year-to-date, SOBO stock currently trades at $46.47 per share with a market cap of $9.7 billion. It also offers a solid 6.1% annualized dividend yield.
One of South Bow’s biggest strengths is its largely contracted business, which supports relatively predictable cash flows. In the third quarter, the company’s revenue climbed 9% YoY, while its net profit rose roughly 6%.
Combined with its ongoing debt reduction efforts and proposed pipeline expansion projects, South Bow’s reliable cash generation and solid fundamentals make it an appealing high-yield TSX dividend stock to buy for long-term passive income.
