3 TSX Stocks With High Dividend Yields

As markets continue to sell off, here are three of the best TSX dividend stocks you can buy to earn attractive passive income.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Earning passive income has a tonne of benefits, particularly if you’re doing it in a registered account like a TFSA. Earning cash consistently from TSX dividend stocks, for example, helps to reduce your investment risk. You can put the cash back to work and help to compound your capital even faster.

And in today’s environment, investors have an excellent opportunity to find many attractive dividend stocks with compelling yields. Because as stocks sell-off, the dividend yield that they offer increases as a result.

So with the market selling off throughout the year, many TSX dividend stocks continue to get more attractive by the day.

Therefore, if you’re a dividend investor or just looking to boost the passive income that your portfolio generates, here are three of the best TSX dividend stocks to buy now.

A top Canadian energy stock

As energy stocks have pulled back over the last few months, investors have plenty of attractive stocks to buy now. If you’re looking to buy TSX dividend stocks, though, I’d recommend Freehold Royalties (TSX:FRU).

Freehold is an excellent dividend stock because it’s constantly bringing in tonnes of cash flow. The stock collects a royalty from other energy companies that use its land to produce energy. Therefore, it has no maintenance expenses and few costs.

Instead, Freehold is constantly bringing in cash, which it’s using to either fund the dividend or save up to invest in acquiring more land.

Therefore, the royalty oil and gas company is one of the generous stocks you can buy. Its ultra-safe dividend offers a yield of roughly 8.3% and the company is expected to payout just 50% of the free cash flow that it will earn next year.

And with the long-term potential Freehold has to continue acquiring more land, specifically south of the border, it’s certainly one of the best TSX dividend stocks to buy today.

One of the few TSX dividend stocks with a yield above 10%

Earlier this month, Corus Entertainment (TSX:CJR.B) warned investors that advertising demand was slowing as the economic situation worsens in North America. However, while this was already to be expected, the stock sold off significantly.

So now, with Corus trading below $2.40 a share, the $0.24 in annual dividend payments means that its yield is now above 10%.

Corus’ business is seeing an impact from the current environment. Yet the stock is highly unlikely to be severely impacted enough that its dividend will have to be trimmed.

For example, over the last 12 months, Corus has earned $0.68 in normalized earnings per share (EPS). Therefore, its payout ratio has been just 35%. And in 2023, its EPS is expected to fall to roughly $0.55, disappointing for the company but nowhere near a level at which the dividend would be under threat.

In addition, while sales and EPS are expected to fall this year and next, Corus is still expected to earn over $225 million in free cash flow in fiscal 2022 and over $200 million in 2023. Meanwhile, the company pays less than $50 million to fund the dividend for an entire year.

So if you’re looking for TSX dividend stocks to buy now, Corus is one that I recently bought on the dip.

A top Canadian royalty stock

Lastly, another excellent TSX dividend stock and one of the most-enticing stocks to buy for passive income is Pizza Pizza Royalty (TSX:PZA).

Pizza Pizza is a great stock because it’s specifically made for dividend investors. It has a simple business model whereby it collects a royalty from all sales across the hundreds of restaurants in its royalty pool.

In addition, Pizza Pizza aims to pay out almost all of its cash back to investors, which is why it’s one of the best TSX dividend stocks to buy for passive income.

It does have some risk, though, since the pizza franchise keeps its payout ratio near 100%. So if the business was to be impacted by a recession, for example, that dividend could be at risk.

However, it’s worth noting that Pizza Pizza has done a fantastic job at finding new ways to grow sales over the long haul.

Therefore, if you’re looking for top TSX dividend stocks to buy now, Pizza Pizza currently offers a yield of 6.4%.

Should you invest $1,000 in Corus Entertainment right now?

Before you buy stock in Corus Entertainment, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Corus Entertainment wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

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 Daniel Da Costa has positions in CORUS ENTERTAINMENT INC., CL.B, NV and FREEHOLD ROYALTIES LTD. The Motley Fool recommends FREEHOLD ROYALTIES LTD. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Canadian flag
Dividend Stocks

The 3 Best Canadian Dividend Stocks You Can’t Ignore

These stocks provide high dividend yields, steady cash flows, and help anchor portfolios against market fluctuations.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Stock Market Sell-Off? These 2 Dividend Knights Are Safe Bets Now

Whenever you're fearful about what the future of the stock market holds, just go back to basics with these two…

Read more »

dividends grow over time
Dividend Stocks

Income Investors: These Canadian Dividend All-Stars Are Raising Payouts Again

Long-term income investors can consider these Canadian dividend all-stars that are trading at good valuations.

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

Here’s How Many Shares of ZMI You Should Own to Get $500 in Monthly Dividends

This BMO monthly income ETF is diversified and easy to understand.

Read more »

dividends can compound over time
Dividend Stocks

Tariff Risks Are Rising: Here’s How to Stay Ahead as an Investor

Are you worried about tariffs? Worry no more and protect yourself with these three stocks offering protection.

Read more »

investor looks at volatility chart
Dividend Stocks

Market Correction: 3 Canadian Stocks to Buy Before Prices Rebound

These three Canadian stocks certainly offer a lot to investors, such as stability and value, but growth is definitely in…

Read more »

a person prepares to fight by taping their knuckles
Dividend Stocks

Tariff Trouble: How Canadian Investors Can Protect Their Portfolios

Canadian investors can protect themselves against Trump tariffs through diversification.

Read more »

Young Boy with Jet Pack Dreams of Flying
Dividend Stocks

Here’s How Many Shares of Peyto You Should Own to Get $100 in Monthly Dividends

Peyto Exploration and Development stock offers investors monthly income and exposure to the strong natural gas market.

Read more »