After three tough trading days, the equity markets rose in the early hours of trading today amid hopes that the United States would negotiate trade deals with other countries. With investors’ sentiments beginning to improve, let’s look at three high-yielding dividend stocks that could help you earn a stable passive income and strengthen your portfolios.
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Enbridge
Enbridge (TSX:ENB) is an ideal stock for income-seeking investors due to its consistent dividend growth and high yield. The midstream energy company transports oil and natural gas across North America through tolling agreements and take-or-pay contracts. Besides, its low-risk natural gas utility and PPA (power purchase agreement) backed renewable energy assets shield its financials from economic volatilities, thus delivering reliable cash flows. Supported by these healthy cash flows, the company has raised its dividends for 30 years. Its forward dividend yield currently stands at an attractive 6.3%.
Moreover, Enbridge expects to put around $23 billion of projects into service over the next three years, growing its midstream, renewable, and natural gas assets. Also, its acquisition of three natural gas utility assets in the United States last year could continue to support its financial growth in the coming quarters. Amid these growth initiatives, Enbridge’s management expects its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) to grow around 9% this year. So, I believe its future dividend payouts will be safer.
Bank of Nova Scotia
Another high-yielding dividend stock I am bullish on is the Bank of Nova Scotia (TSX:BNS), which has been paying dividends since 1833. The bank offers various financial services across 20 countries, generating healthy cash flows and allowing it to pay dividends uninterruptedly. Its quarterly dividend payout of $1.06/share translates into an attractive forward dividend yield of 6.7%.
Moreover, the financial services company is focusing on strengthening its position in North America while optimizing its international businesses to drive profitability. Adhering to its long-term strategy, the company has acquired a 14.9% stake in KeyCorp, increasing its capital deployment in its priority market. Further, the company has transferred its banking operations in Colombia, Costa Rica, and Panama to Davivienda in exchange for a 20% stake in the combined entity. The transaction could lower BNS’s Common Equity Tier 1 ratio by 10–15 basis points amid a reduction in risk-weighted assets. Considering all these factors, I believe BNS is well-equipped to continue rewarding its shareholders with healthy dividend yields.
Telus
Telus (TSX:T) is my final pick. The Vancouver-based telco has an excellent reputation for rewarding its shareholders with consistent dividend growth and share repurchases. Since 2004, it has paid $22 billion in dividends and repurchased shares worth $5.2 billion. Also, since May 2011, the company has raised its dividends 27 times and currently offers a juicy forward dividend yield of 7.9%.
Meanwhile, the demand for telecommunication services continues to rise due to digitization and growth in remote working and learning. Amid demand growth, Telus continues to expand its 5G and broadband infrastructure and plans to invest $2.5 billion this year. Besides, its Telus Health and Telus Agriculture and Consumer Goods segments are witnessing healthy growth and could continue to support its financial growth in the coming quarters. Considering the essential nature of its business and growing customer base, I expect Telus to continue paying dividends at a healthier rate.
