Canadian retirees have quite a few income-rich offerings available to them in this high-rate environment. Of course, with food inflation still hurting our wallets, today’s high rates may not seem like all too much. If anything, it’s just keeping pace with the price increases, especially the stubborn ones at the grocery store.
In any case, inflation will not last forever. And though rates are expected to come down by a bit over the coming years, I think there are a lot of intriguing high-yield options that can allow investors to “lock in” a yield for the long haul. And I’m not talking about long-term bonds. Instead, I’m talking about high-yield stocks that are starting to look competitive, even with rates at today’s heights!
Indeed, you will take risks with any stock or real estate investment trust (REIT). However, some risks are more than worth taking, provided the potential rewards are bountiful.
In this piece, we’ll consider three dividend stocks that I believe sport yields that are as handsome as they are safe.
Telus
Telus (TSX:T) is a Canadian telecom that’s currently a falling knife right now alongside most players in the telecom scene. Undoubtedly, high rates have bitten capital-intensive firms quite hard. Fortunately, Telus’s dividend yield has swelled, currently yielding 6.33%. On Wednesday, Telus stock surged 2.5%, reclaiming a tiny bit of the ground lost during its lengthy selloff.
With a huge 6,000-employee layoff now in the books, I think Telus is entering a sort of reset. Whether or not it marks the bottom-out process in the stock, though, is another question.
At 23.1 times trailing price to earnings, the stock doesn’t look cheap. Still, I view Telus as a big winner from the wireless boom. In that regard, I find Telus’s dividend is well worth consideration if you’re a retiree seeking a passive-income jolt.
Enbridge
Enbridge (TSX:ENB) is a pipeline company that you simply cannot count out, even as the shares sag and the dividend yield swells. After Wednesday’s strong sessions, which saw shares of ENB climb 1.4%, ENB stock now yields around 7.35%.
The stock is not out of the woods yet, though. It’s still down just shy of 17% from its 2022 all-time high. Fortunately, Enbridge has all the tools to sustain a recovery. And I think brave investors who buy while the yield is swollen will have the most to gain over the medium and long run.
The management team is very shareholder friendly, and I just don’t see them cutting the payout, even if shares were to slip a bit further from here. All considered, ENB stock is a great pick-up here, especially if you value income.
Quebecor
Quebecor (TSX:QBR.B) is an underdog in the telecom scene. The firm is a regional operator that could expand nationwide in a big way over the coming years. Indeed, Quebecor will need to spend so much money if it hopes to disrupt incumbent telecom firms like Telus. Given the capabilities of management, though, I think Quebecor has what it takes.
For now, the stock yields 3.82%, with a dirt-cheap 12.17 times trailing price-to-earnings multiple. Though it could take years for Quebecor’s disruptive potential to weigh on rivals, I’d not be afraid to buy at these depths. The yield may be lower than Enbridge or Telus, but the growth profile seems far more intriguing.
