Top TSX dividend-paying stocks with relatively high yields can provide solid passive income and serve as a hedge against inflation. Fortunately, several Canadian stocks offer high yields and are known for their resilient payouts. The durability of their payouts and high yields make them attractive investments for earning a steady income.
Against this backdrop, let’s look at three fundamentally strong stocks offering at least 7% yields.
BCE
Canada’s largest communication company, BCE (TSX:BCE), stands out as a solid investment offering a high and reliable yield. To be precise, BCE stock offers a compelling yield of over 8.6% (based on its closing price of $46.15 on July 26). BCE’s high yield is supported by its extensive range of telecommunications products and services. Further, its leadership in internet and TV, a significant service footprint and scale, and a vast customer base contribute to the resiliency of the business model and the sustainability of its payouts.
BCE has a strong track record of rewarding its shareholders through increased dividends. The communication company announced a 3.1% dividend increase in February 2024. Further, it has increased its dividend for 16 consecutive years. This consistency shows the company’s management’s commitment to returning value to its shareholders.
Despite facing near-term challenges such as competitive pricing and economic uncertainty, BCE is well-positioned for long-term growth. The ongoing expansion in 5G subscriptions, the company’s focus on improving efficiency through cost-reduction measures, and growing its customer base will likely drive its earnings and dividend payouts. Furthermore, BCE is investing in new growth areas like digital transformation, cloud services, and security solutions. These initiatives will drive future growth.
Enbridge
Enbridge (TSX:ENB) is another attractive, high-yield TSX stock. The company transports oil and gas and owns a highly diversified asset base. Thanks to its resilient business, which generates solid earnings and distributable cash flows (DCF) in all commodity and market cycles, Enbridge offers a reliable dividend while its high yield is secure.
Enbridge has paid dividends for 69 years in a row. Further, it raised its quarterly payouts for 29 consecutive years. Based on its closing price of $50.72 on July 26, the stock offers a lucrative yield of over 7.2%.
The energy infrastructure company benefits from its top-quality asset base, high asset utilization rate, long-term contracts, and power-purchase agreements. Thanks to these catalysts, the company generates solid DCF per share, which supports its payouts. Further, its growing conventional and renewable energy assets, acquisitions, and multi-billion secured projects will likely expand its earnings base and drive higher dividend payments.
SmartCentres Real Estate Investment Trust
With a high yield of 7.6%, monthly payouts, and dependable distributions, SmartCentres Real Estate Investment Trust (TSX:SRU.UN) is a solid investment for passive-income investors. The firm owns a high-quality portfolio that generates durable operating income to support its payouts.
SmartCentres owns and operates high-traffic retail centres, which attract significant leasing interest, leading to impressive occupancy rates. The REIT’s higher mix of retail tenants adds stability to its financial performance, ensuring consistent cash flow growth and bolstering overall earnings.
The firm is well-positioned to benefit from heightened leasing interest for existing and newly developed properties. Lease extensions and renewals are expected to contribute to rental increases. Further, SmartCentres’s high cash-collection rate is positive.
In summary, SmartCentres’s resilient portfolio, high occupancy rate, top-quality tenant base, large, undeveloped land bank, and development of mixed-use properties bode well for future growth and will support its dividend distributions.
