4 High-Yielding Dividend Stocks to Buy Amid Rising Volatility

These four high-yielding dividend stocks could strengthen your portfolio while delivering a higher stable passive income.

Amid concerns over higher valuation, rising inflation, and a slowdown in the economic recovery rate, the equity markets have turned volatile over the last few months. So, investors can buy the following four high-yielding dividend stocks to strengthen their portfolio while earning a higher stable passive income.

Enbridge

Amid rising energy demand due to improved economic activities, I have picked Enbridge (TSX:ENB)(NYSE:ENB), a midstream energy company, as my first pick. It has paid dividends uninterruptedly for the last 66 years while raising the same at a compound annual growth rate (CAGR) of over 10% for the previous 26 years. Meanwhile, its forward yield currently stands at an impressive 6.59%.

Besides, Enbridge’s management has planned to invest around $17 billion from 2021 to 2023 to expand its transmission and distribution business while increasing its power production capacity. Along with these investments, the recovery in the energy sector and its solid underlying business could drive its earnings and cash flows, thus allowing it to continue with its dividend growth.

Pembina Pipeline

Pembina Pipeline (TSX:PPL)(NYSE:PBA) would be my second pick. It pays a monthly dividend of $0.21 per share with its forward yield standing at 6.33%. The company earns around 94% of its adjusted EBITDA from regulated assets or fee-for-service and take-or-pay contracts, thus delivering stable cash flows. Supported by these strong cash flows, the company has rewarded its shareholders with $10.1 billion of dividends since 1997.

Meanwhile, Pembina Pipeline has around $1 billion of projects under construction, while about $700 million are in deferred and pending reactivation stage. Further, it has over $4 billion worth of potential new projects. The company’s financial position looks healthy, with its liquidity standing at $2 billion. Given its healthy growth prospects and solid liquidity position, I believe Pembina Pipeline’s dividends are safe.

Pizza Pizza Royalty

After reporting a solid second-quarter performance last month, Pizza Pizza Royalty (TSX:PZA) raised its monthly dividends from $0.055 per share to $0.06. The rising of dividends shows the management’s confidence in its future earnings and cash flows. The easing of restrictions has allowed the company to reopen its dining spaces and non-traditional restaurants, which could boost its financials in the coming quarters.

Pizza Pizza’s investment in strengthening its digital channels, such as delivery and pickup at restaurants, could continue to support its financial growth even in the post-pandemic world. Also, given its asset-light model, the company could bounce back quickly. Currently, its forward yield stands at a healthy 6.28%.

BCE

My final pick would be BCE (TSX:BCE)(NYSE:BCE), which has raised its dividends consistently since 2008. Its large and growing customer base and significant recurring revenue generate stable cash flows, thus allowing it to increase its dividends uninterruptedly. It currently pays a quarterly dividend of $0.875 per share, with its forward yield standing at 5.41%.

Meanwhile, the demand for telecommunication services is rising amid digitization and the growing remote working and learning culture, benefiting BCE. Further, the company is aggressively investing in expanding its 5G service and high-speed broadband services, which could boost its financials in the coming quarters.

Its financial position also looks healthy, with its liquidity standing at $5.3 billion as of June 30. So, I believe BCE would be an excellent buy for income-seeking investors.

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.

The Motley Fool owns shares of and recommends Enbridge and PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends PEMBINA PIPELINE CORPORATION. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Dividend Stocks

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Canadian National Railway Stock is on Sale: Why Now is the Time to Invest

CNR stock has long been a top stock, with a solid position in a railway duopoly. But right now is…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

This 7.9% Dividend Stock Pays Cash Every Month

We all want dividends, and having them come out monthly is ideal! But this might be a strong choice for…

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

Is Northland Power Stock a Buy for its 6% Dividend Yield

Northland Power stock is cheap and ready to move higher as major projects near completion. In the meantime, we have…

Read more »

space ship model takes off
Dividend Stocks

3 Top Canadian Stocks That Just Increased Their Dividends (Again)!

These three top Canadian stocks just increased their dividend. No surprise since they have a great record of growing earnings…

Read more »

Canadian flag
Dividend Stocks

This Canadian Dividend Stock Pays at 11.2%

A high dividend yield is awesome, sure, but is this dividend stock still a great buy with that 11.2% yield,…

Read more »

Hand Protecting Senior Couple
Dividend Stocks

3 Blue-Chip Stocks So Safe Canadians Can Hold Them Until They Die

Canadian National Railway (TSX:CNR) is a stock worth owning for life.

Read more »

stock research, analyze data
Dividend Stocks

14.7% Dividend Yield? Buy Up This Passive-Income Stock in Bulk!

That dividend yield is high, but it still comes with some strong reasons to consider the stock outside of a…

Read more »

Canadian Dollars bills
Dividend Stocks

1 Dividend Stock That Could Create $5,000 in Tax-Free Passive Income in 10 Years

Here's why Fortis (TSX:FTS) certainly looks like a top dividend stock with outsized total return upside worth buying right now.

Read more »