The 10 Highest Dividend Yields of the S&P/TSX 60 Index in May

High yield stocks like BCE Inc. (TSX:BCE)(NYSE:BCE), Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI), and Crescent Point Energy Corp. (TSX:CPG)(TSX:CPG) sport some of the highest yields around.

The Motley Fool

Dividend investing is popular these days, and for good reason. GICs pay out zilch. Bonds yield next to nothing. And as for saving accounts, don’t even ask!

That’s why high-yield stocks can be so tantalizing. For income-thirsty investors, they provide an espresso shot of cash flow to any portfolio. Even better, numerous studies have shown that high-yield stocks actually outperform the market over the long haul.

That’s why I’m always on the hunt for companies that pay out oversized dividends. So, with this theme in mind, I checked out the highest-yielding stocks in the blue-chip S&P/TSX 60 Index. Here are the top 10 names the screen produced.

Company Market Cap Yield
Crescent Point Energy Corp. $13.3 billion 9.4%
TransAlta Corporation $3.1 billion 6.5%
ARC Resources Ltd. $7.8 billion 5.2%
Cenovus Energy Inc. $17.0 billion 5.1%
BCE Inc. $44.8 billion 4.9%
Husky Energy Inc. $24.3 billion 4.6%
Inter Pipeline Ltd. $10.5 billion 4.6%
Potash Corp./Saskatchewan Inc. $32.3 billion 4.6%
Canadian Imperial Bank of Commerce $37.6 billion 4.5%
Rogers Communications Inc. $22.1 billion 4.5%

Source: Yahoo! Finance

To be clear, this is not a list of formal buy recommendations, but rather a place to start your research. That said, there are some good investment ideas here.

BCE Inc. (TSX:BCE)(NYSE:BCE) and Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) both churn out some of the most reliable dividends around. They’re both also shunned by investors because everyone knows future earnings growth will be meager at best. Landlines are ancient history and the wireless business is mostly saturated.

Then again, no one should expect any stock paying out more than 4% to produce much earnings growth. You’re paying for the distribution and not much else. But with a yield this high, shareholders who sit around reinvesting their dividends will beat most others as the years pass by.

The story is simple with TransAlta Corporation (TSX:TA). It’s a well-run utility serving millions of customers across the country. They turn their lights on, you get paid. If the economy slows down, power companies like TransAlta will provide some of the best returns around.

Inter Pipeline Ltd. (TSX:IPL) owns oil pipelines and terminals across western Canada. Thanks in part to the monopoly status it holds on these assets, this company just reported record quarterly profits. That’s great news for its investors because Inter Pipeline returns every penny it can to shareholders. Since going public in 1997, this company has raised its dividend more than sevenfold.

Finally, Potash Corp./Saskatchewan Inc. (TSX:POT)(NYSE:POT) is easy to disregard because potash prices are in the doldrums. However, the stock now cranks out a tidy 4.6% yield, and the company is just wrapping up construction on a major new expansion project.

With less cash going into the ground, Potash Corp. is about to start gushing cash flow, which should be returned to shareholders through dividends and buybacks. Management toiled for years developing this mine. Sit back and enjoy the hard work.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Robert Baillieul has no position in any stocks mentioned. Rogers Communications is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Canadian dollars in a magnifying glass
Dividend Stocks

3 High-Yield Dividend Stocks That Are Screaming Buys Right Now

Are you looking for great income stocks? Here's a trio of high-yield dividend stocks that pay insane yields right now.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Transform a $5,000 TFSA Into a $50,000 Retirement Nest Egg

The TFSA is a powerful tool that can grow a small investment into a substantial retirement nest egg over time.

Read more »

A meter measures energy use.
Dividend Stocks

Is Fortis Stock a Buy, Sell, or Hold for 2025?

Fortis has increased its dividend annually for the past five decades.

Read more »

analyze data
Dividend Stocks

3 Dividend Stocks That Are Screaming Buys in November

Here are three top dividend stocks long-term investors won't want to ignore during this part of the market cycle.

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

Generate $175/Month in Passive Income With a $30,000 Investment

Dividend aristocrats offer reliability, and many of them also offer generous yields. With sizable enough discounts, these yields can become…

Read more »

dividends can compound over time
Dividend Stocks

Best Dividend Stocks to Buy Now for Canadian Investors

These three stocks would be excellent additions to your portfolios, given their solid underlying businesses, consistent dividend growth, and healthy…

Read more »

data analyze research
Dividend Stocks

3 Undervalued Stocks to Watch in November

Not all undervalued and discounted stocks are destined or poised to make a comeback soon, and a protracted timeline can…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

The Perfect TFSA Stocks for Long-Term Growth

Two industry heavyweights are perfect stock holdings in a TFSA for long-term money growth.

Read more »