High Yield Alert: 3 Canadian Dividend Stocks to Buy Now

High-yielding Canadian dividend stocks can help you earn steady passive income. These types of shares offer attractive rates of return and shorten the time needed to recover the money spent on investments. And if you reinvest your dividend payments, you can continually accumulate more shares, which can help you create significant wealth over time. In this way, high-yield stocks provide regular income and can increase your portfolio’s capital appreciation potential.

Let’s take a look at three Canadian stocks with solid fundamentals that you can buy right now that will give you a high yield of over 6%.

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BC (TSX:BCE) is currently one of the most reliable and high-yielding stocks listed on the TSX. The Canadian communications giant is known for paying and consistently increasing dividends to increase shareholder value. Example: BCE has increased its dividend for 16 years in a row.

It currently offers a quarterly dividend of $0.998 per share, resulting in an annual payout of $3,992. Based on the October 4 closing price of $45.76, this gives investors a solid rate of return of 8.72%.

BCE’s ability to consistently grow earnings, even in difficult market conditions, supports its dividend payments. The company benefits from a large customer base, high-performance fiber broadband network, high-speed 5G mobile services and a strategy to combine mobile and internet services to enhance customer retention. Cost reduction initiatives also help BCE increase profitability and maintain dividend payments.

Looking ahead, the company’s extensive wired and wireless network, operational efficiencies and expansion in high-growth areas such as digital advertising services, cybersecurity and cloud computing should accelerate its growth and translate into higher earnings and dividend payments.

Enbridge Stocks

Enbridge (TSX:ENB) is well known for its high performance and withdrawal resistance. The energy infrastructure company has been paying dividends consistently for over 69 years (!) and has increased them for 29 years in a row. Enbridge’s dividend distribution history demonstrates the company’s strong financial position, ability to grow earnings in any market environment, and management’s commitment to increasing shareholder value.

Enbridge currently pays a quarterly dividend of $0.915, reflecting a high yield of 6.6%.

Enbridge can continue to grow its dividend in the coming years thanks to growing earnings and distributable cash flow (DCF) per share. Diversified revenue streams, extensive liquid pipeline network, long-term contracts, power purchase agreements (PPAs) and regulated charging framework position it well to grow earnings and DCF per share at a mid-single-digit rate over the long term. Moreover, acquisitions and investments in low-risk capital projects bode well for future dividend growth.

Stock of Capital Mortgage Investment Corporation

Capital Mortgage Investment Corporation (TSX:FC) is another high-yielding stock Canadians should consider. The non-bank lender provides financing for residential and commercial real estate. It pays a monthly dividend of $0.078 per share, which translates to a high yield of approximately 8.1%.

As a boutique real estate and financial services firm, Firm Capital strategically invests in debt and equity in Canada’s private and public real estate markets. Its portfolio is well diversified by region, mortgage type, loan amount and property category.

Moreover, the company’s focus on short-term financing, conservative lending approach and stringent underwriting practices help it maintain solid earnings and support dividend payments.

Looking ahead, Firm Capital Mortgage Investment will be able to generate solid interest, fees and income from its mortgage portfolio investments. This will help the company increase shareholder value through regular dividend payments.