Investing in high-yield dividend stocks can help generate significant passive income over time. However, investors should focus on shares of well-established companies with a solid dividend payment history, a growing earnings base, and a commitment to rewarding shareholders with regular payouts. Against this backdrop, here are three high-yield dividend stocks to buy right now. These Canadian stocks, with yields over 6%, boast fundamentally strong businesses with growing earnings, thus supporting higher dividend distributions. Let’s dig deeper.
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BCE (TSX)
One of the top high-yield and reliable dividend stocks right now is BCE. The Canadian communication giant currently pays a quarterly dividend of $0.998 per share, offering a high yield of 8.7%, based on a closing price of $45.88 as of October 3. BCE focuses on enhancing shareholder value with higher dividend payments in all market conditions, having raised its dividend for 16 consecutive years.
BCE’s diverse product offerings and extensive network support its growth. The company is transforming into a technology services and digital media company, benefiting from higher digital ad revenue and expansions in cybersecurity and cloud computing. This shift is expected to drive future earnings growth and allow for increased dividend payments.
TC Energy (TSX)
TC Energy is another leading Canadian company known for its consistent payouts and high yields. The company has raised its dividend by approximately 7% annually for 24 consecutive years, with a current yield of about 6.4%. Thanks to its regulated business model and diversified revenue streams, TC Energy generates steady cash flows to support its dividends.
Looking ahead, TC Energy’s long-life infrastructure assets and significant projects are expected to generate robust earnings, allowing the company to continue rewarding its shareholders with higher payouts.
Pizza Pizza Royalty (TSX)
For those seeking high yields, Pizza Pizza Royalty is a solid choice. This company, which franchises quick-service restaurants, offers monthly dividend payments of $0.077 per share, translating to a yield of 7.1%. Pizza Pizza Royalty is committed to distributing all its cash to investors after reserving necessary funds.
With a diversified income model and a strong track record of increasing earnings, the company announced three dividend increases in 2023, reflecting a 10.7% growth in payouts. Its ongoing investments in quality and technology, along with strategic menu pricing, are likely to bolster future cash flows and dividends.
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Investing in high-yield dividend stocks like BCE, TC Energy, and Pizza Pizza Royalty can provide a reliable source of passive income. By focusing on companies with a strong commitment to dividends and solid growth prospects, investors can build a portfolio that generates steady income while potentially benefiting from capital appreciation over time.