Here Are the Highest-Yielding Dividend Stocks in Canada for November

Uncover the potential in dividend stocks. Learn why high yields of 8–10% come with risks, especially in inflationary times.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

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Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published November 12, 3:45 pm EST

November began with a sharp correction in energy stocks, Canada’s first interest rate hike in three years, and a negative election outcome for US President Donald Trump. The Bank of Canada expects companies to pass high energy costs to consumers, as inflation rises to 3.5% in the fourth quarter, from 3.1% in September. This situation creates opportunities for energy stocks but is a threat for mortgage stocks and those with high debt.

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What investors should know about the highest-yielding stocks in Canada?

If inflation has made you greedy and you seek some of the highest dividend yields of 8–10%, note that they come with a high risk of dividend cuts. At present, short-term mortgage providers are at risk of dividend cuts. Their dangerously high payout ratios and higher yields are a warning sign.

MCAN Mortgage Corporation has a dividend yield of 7.9% and a payout ratio of 91% of its third-quarter earnings per share (EPS).
Atrium Mortgage Investment Corporation has a dividend yield of 8.2% and a payout ratio of 98% of its EPS in the third quarter.
Timbercreek Financial has a dividend yield of 13.5% and a payout ratio of 182.8% of its EPS in the second quarter of 2026.

For mortgages, it is better to take the payout ratio as a percentage of EPS, considering their high credit loss provision, which makes cash flow volatile. All the above stocks are at a dangerous payout ratio and may not be able to sustain the dividend if a major borrower defaults.

Highest-yielding stocks in Canada in November

Investors should look for high-yield stocks with a strong balance sheet and a reasonable payout ratio that gives them financial flexibility to accommodate higher interest expense and falling cash flow.

Freehold Royalties

Freehold Royalties (TSX: FRU) has a 6.3% annual yield and a 55% payout ratio in the third quarter of 2026. The company realized higher oil prices, although production fell 2%. The company continued to reduce its long-term debt to $248.8 million, which is now 0.9 times its funds from operations. Freehold Royalties can sustain its current dividend of $0.09 per month at the WTI crude price of US$50/barrel while keeping the payout ratio within the acceptable range.

Freehold can continue to give a 6.3% annual dividend in an inflationary environment and escalating geopolitical risks. Considering it has no operational risk, as it only leases the land and earns royalty, credit risk is what Freehold is vulnerable to when the energy upcycle dies.

Right now, Freehold is at a sweet spot. You can expect its dividend yields to remain high for a few years.

SmartCentres REIT

SmartCentres REIT (TSX: SRU.UN) has a 6.7% annual yield and a payout ratio of 96.8% of adjusted funds from operations (AFFO) in the third quarter of 2026. Despite the higher payout ratio, it is a REIT worth buying for its yield. Its long partnership with Walmart dates back to the 1990s. SmartCentres started by leasing stores to Walmart, then to Walmart-anchored retailers, and now it is building city centres around Walmart stores.

The REIT has a large pipeline of projects under development. This creates short-term risk by increasing working capital needs, but presents a long-term rent opportunity. I am confident the REIT can sustain its current dividend, as it has overcome worst scenarios of the 2008 Global Financial Crisis and the 2020 pandemic without dividend cuts. You could consider locking in a 6.7% annual yield, which is slightly risky but manageable.

Cogeco Communication stock

Cogeco Communications (TSX: CCA) has a 7.6% annual yield and a payout ratio of 30% of free cash flow. At a time when other telcos are slashing dividends, Cogeco increased it by 2% to $4.03 for 2027. Like other telcos, Cogeco is also facing the heat of competitive pricing. Its third-quarter adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) decreased by 3.8% year-over-year due to lower revenue in American telecommunications.

This trend is expected to continue in 2027 as well. Hence, it expects its 2027 revenue to fall by low-to-mid-single digits, and adjusted EBITDA to fall by mid-to-high-single digits. To maintain its dividend payout ratio at 30%, Cogeco has slowed its dividend growth from 7% in 2026 to 2% in 2027.