3 High-Yield Dividend Stocks to Buy Now for a Lifetime of Passive Income

These three high-yielding dividend stocks offer passive income, but also a long-term investment strategy for those wanting to park their cash.

| 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

Every Canadian could use extra cash. The rising cost of items at every single store in the country has certainly made sure of that. Soaring inflation is likely why dividend stocks have become so popular once again. Yet when it comes to these high-yielding dividend stocks, you’re not just gaining exposure to high passive income. You’re also gaining access to a long-term hold.

With that in mind, today we’re going to look at three high-yield dividend stocks that continue to fit the bill.

CIBC

If you’re looking for safety and passive income, then Canadian Imperial Bank of Commerce (TSX:CM) belongs on your list. CIBC stock continues to be a strong dividend stock with a current dividend yield at 5.33% as of writing.

Created with Highcharts 11.4.3Canadian Imperial Bank Of Commerce PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

What’s more, CIBC stock has been seeing improvements in its earnings. After earnings that barely scraped by estimates, or missed them entirely, the first quarter soared past estimates. This put the company in a strong position, with its Canadian clients continuing to remain loyal to the brand.

Furthermore, CIBC stock continues to look like a deal when digging into its fundamentals. It trades at just 10.3 times earnings over the past year, demonstrating that the stock continues to trade under its intrinsic value – especially when adding that it trades at 1.3 times book value, even with shares up 18% in the last year! So I would certainly consider this high-yielding dividend stock while it continues to offer a yield higher than its five-year average of 5.28%.

TC Energy

Another company offering an ultra-high dividend yield while also providing long-term income is TC Energy (TSX:TRP). This energy provider has also been a huge dividend stock provider, holding a yield at 7.28% as of writing.

Created with Highcharts 11.4.3Tc Energy PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Now, TRP stock has long been a pipeline company. And that was great in the past. But the company is now slowly but surely transitioning over to renewables as well. This provides investors with a long-term investment opportunity. Right now, you can still gain from the long-term contracts providing stable cash flow. However, you also don’t have to worry about a fall in the future, given that it’s investing in renewables as well.

Meanwhile, TRP stock currently trades at 20.2 times earnings, which is still lower than its five-year average of 25.6 times earnings. It also trades at just 2 times book value, with shares down 6% in the last year. Yet after a massive fall in April, the stock is up 8.3% and climbing back to 52-week highs. So again, I would grab this dividend stock while it still offers a dividend that’s far higher than its five-year average of 5.75%.

Canadian Utilities

Now if you’re really looking for solid long-term income from a dividend stock, then Canadian Utilities (TSX:CU) has likely already come to your attention. With a dividend yield at 5.69%, CU stock is a strong option. And one you can look forward to growing year after year.

Created with Highcharts 11.4.3Canadian Utilities PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

As with TRP stock, the company is an energy provider. Yet while this involves some gas production, it’s also invested in other types of energy production. All to power the utilities we use on a daily basis. And the company has managed to be such a strong cash flow generator that it was the very first Dividend King on the TSX. This means it’s been increasing its dividend each year for the last 50 years!

So with shares trading at just 14.9 times earnings, and down 19% in the last year, it looks like a strong time to buy. Especially while trading at 1.6 times book value, and its earnings are lower than its five-year average of 19.4 times earnings. Shares have started to climb once more, so I would certainly consider this dividend stock as well for high-yield income for life.

Should you invest $1,000 in CIBC right now?

Before you buy stock in CIBC, 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 CIBC 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 Amy Legate-Wolfe has positions in Canadian Imperial Bank of Commerce. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Dividend Stocks

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

TFSA Contribution Limit for 2025 Stays at $7,000: What to Buy

Are you looking for more income from your $7,000 TFSA investment? Then consider EIF stock first and foremost.

Read more »

dividends can compound over time
Dividend Stocks

3 Dividend Champions to Earn Reliable Monthly Income

The following three monthly-paying dividend stocks could help investors earn a stable passive income.

Read more »

Female raising hands enjoying vacation, standing on background of blue cloudless sky.
Dividend Stocks

Top Canadian Stocks to Buy for Value Investors

These Canadian stocks offer everything from long-term growth to value and even income. So, what's the hold up?

Read more »

coins jump into piggy bank
Dividend Stocks

How to Use Your TFSA to Earn $113 Per Month in Tax-Free Income

These TSX dividend stocks offer high yields and monthly payouts. These stocks can help you earn over $113 in tax-free…

Read more »

a person looks out a window into a cityscape
Dividend Stocks

Better REIT: RioCan vs Choice Properties?

If you're looking for income, the two largest REITs out there are a good place to start. But which edges…

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

Here’s the Maximum Amount Canadians Could Have in a TFSA

No matter what your contribution room, holding ETFs like iShares S&P/TSX 60 Index Fund (TSX:XIU) in a TFSA is a…

Read more »

grow money, wealth build
Dividend Stocks

Infrastructure Boom: Why Canadian Stocks Are Set for Decades of Growth

Infrastructure remains a top area of growth for the future, and these Canadian stocks should seriously benefit.

Read more »

Dividend Stocks

Got $1,000? 3 REITs to Buy and Hold Forever

Turn $1K into tax-deferred cash flow with 3 forever REITs (up to 8.6% yield!)

Read more »