As interest rates are on a downtrend, high-yield dividend stocks appear to be a compelling investment to generate passive income in 2025. However, investors should look for stocks supported by established businesses, solid fundamentals, and a growing earnings base. These businesses are well-positioned to sustain their high yields and maintain consistent dividend payouts over the long term. With this backdrop, here are three TSX stocks offering dividend yields of over 6%.
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High-yield stock #1
Canadian investors seeking high and reliable yields could consider Enbridge (TSX:ENB) stock. The company transports oil and gas, has a diversified utility footprint, and a growing renewable energy portfolio. Thanks to its diversified revenue streams and resilient business model, Enbridge generates solid earnings and distributable cash flow (DCF) per share that support its payouts.
Enbridge recently increased its dividend by 3% to $3.77 per share, marking its 30th consecutive annual growth. The company’s current dividend translates into a high yield of over 6%.
The company’s extensive asset base witnesses high utilization rates, ensuring steady cash flow. Moreover, its regulated tolling framework and power-purchase agreements provide further financial predictability, helping to sustain its dividend payments.
The company continues to optimize its existing assets while pursuing strategic acquisitions to expand its utility footprint. Additionally, its focus on cost-effective expansion projects bolsters its earnings potential, paving the way for continued dividend growth.
High-yield stock #2
SmartCentres REIT (TSX:SRU.UN) could be an excellent addition to your portfolio, enhancing its income-generating potential. The REIT (real estate investment trust) offers a high and sustainable yield of 7.6% and monthly payouts. This makes SmartCentres an attractive choice for passive-income investors.
The REIT has a resilient portfolio of mixed-use properties, primarily anchored by grocery-based retail centers, which generate stable income and are relatively insulated from economic downturns. These properties maintain high tenant retention, providing consistent and reliable distributions to investors.
SmartCentres’s retail portfolio attracts steady foot traffic and demand, maintaining high occupancy and solid rent collection even in challenging markets. Moreover, it witnesses solid demand from new and existing tenants for new locations.
Looking ahead, SmartCentres is focusing on mixed-use development projects. These initiatives will diversify its income streams into sectors like residential, office, self-storage, and industrial spaces, reducing risk and enhancing recurring revenue opportunities. Moreover, with a substantial land bank and financial strength, the REIT is well-positioned to capitalize on growth opportunities while delivering stable, attractive returns to investors.
High-yield stock #3
Investors seeking high and reliable yields could add shares of the Canadian communication company Telus (TSX:T) to their portfolios. The company’s solid dividend growth history, sustainable payout ratio, and attractive yield make it a top option for passive-income investors.
Telus has raised its dividend 27 times since 2011 and returned over $21 billion in dividends since 2004. The company pays a quarterly dividend of $0.402 per share, translating into a high yield of 8.2%.
Telus has consistently grown earnings while expanding its subscriber base. Further, it has a low customer churn rate. These strengths drive strong cash flows and sustainable payouts. The company’s investments in network upgrades and spectrum acquisitions will likely drive its future revenue growth through new customer acquisitions and connected device subscriptions.
Moreover, the company is well-positioned to benefit from the 5G transition and rising mobile data demand. Telus has also diversified into digital IT solutions, artificial intelligence-driven automation, and Internet of Things services, which strengthens its growth potential and makes it a compelling long-term investment.
