Retirees looking for dependable passive income could consider investing in top dividend-paying stocks with high yields in September. These Canadian stocks offer steady income and provide a hedge against inflation, making them attractive options for retirees looking for secure income.
Thankfully, several Canadian stocks are known for offering high and sustainable yields. Further, these companies have a proven record of paying and raising their dividends regardless of the economic situation.
With this backdrop, let’s look at two high-yield dividend stocks that retirees can buy in September. These companies have fundamentally strong businesses and a growing earnings base to support their payouts. Moreover, these stocks offer a lucrative yield of at least 7%.
BCE
Speaking of reliable high-yield dividend stocks, BCE (TSX:BCE) could be a top choice for retirees. This Canadian telecom leader has built a solid reputation for consistently rewarding its investors with higher dividend payments. In addition, the telecom company currently offers a compelling yield near its current market price, which is hard to ignore.
For instance, BCE has raised its dividends for 16 consecutive years. For 2024, the company increased its dividend by 3.1% to $3.99 per share. Further, BCE stock offers an attractive yield of 8.2% based on the closing price of $48.48 on September 4.
Although short-term macroeconomic and competitive pressures have impacted its share price, BCE’s efforts to enhance efficiency through cost-reduction strategies are expected to boost earnings, supporting future dividend growth. The company is also leveraging its advanced broadband networks and services to expand its customer base, which will strengthen its financial performance and dividends.
In addition, BCE’s focus on emerging growth areas such as digital transformation, cloud computing, and security services is expected to accelerate its growth, driving revenue and adjusted EBITDA. These initiatives will likely further support dividend increases, making BCE an attractive option for retirees seeking reliable income.
SmartCentres REIT
SmartCentres Real Estate Investment Trust (TSX:SRU.UN) is another ideal high-yield stock for retirees. It is one of Canada’s largest fully integrated REITs (real estate investment trusts) and is well-known for offering stable monthly dividend payments and a high yield.
For instance, this REIT currently offers a monthly dividend of $0.154 per share, reflecting a high yield of about 7.1% based on the last closing price of $26.11.
SmartCentres owns a high-quality retail and mixed-use portfolio that witnesses solid demand, provides stability, and drives occupancy rates. Its real estate portfolio, comprising high-traffic centres, witnesses high lease renewals and higher rents. This helps the company consistently drive net operating income and cash flows to support its distributions. Furthermore, SmartCentres boasts a high-quality tenant base, including major retailers and banks. These top tenants help stabilize its cash flows and drive its collection rates.
The REIT is poised to benefit from its high-quality properties, strong leasing demand, solid development pipeline, and high occupancy rate across its portfolio. Moreover, its top-quality tenant base and underutilized land bank will likely generate resilient income and funds from operations (FFO) to support its dividend payouts.
