Investors looking for an affordable way to build a passive income stream might consider high-yield dividend stocks. With interest rates falling, high-yield dividend stocks are crying out for bargains right now.
However, investors should be careful. A payout that seems too good to be true is often a signal that a company is facing headwinds. Furthermore, a decline in stock prices due to financial pressure increases returns.
The good news is that not all Canadian high-yield stocks fall into this category. A few fundamentally strong companies offer high and sustainable returns, which can boost the income potential of your portfolio.
Against this backdrop, here are three high-yield stocks that are crying out for bargains right now.
High-Yield Dividend Stock #1: Enbridge
With solid dividend payments, a stable growth history and a high yield of 5.6%, Enbridge (TSX:ENB) is a no-brainer stock for income investors. The energy infrastructure giant has been paying dividends for more than seventy years. Furthermore, ENB shareholders have enjoyed dividend growth for 30 consecutive years.
Enbridge’s payouts are supported by its highly diversified revenue stream and low-risk commercial framework. It benefits from consistently high pipeline utilization and long-term contracts that reduce exposure to commodity price fluctuations. About 98% of revenue comes from regulated or take-or-pay agreements, which provide the basis for future dividend growth. The company also maintains a disciplined payout ratio, paying out only 60 to 70% of cash flow, leaving plenty of room to invest in expansion projects.
Looking ahead, Enbridge is well positioned to deliver steady growth as demand for its network remains strong. Enbridge is investing in both traditional and renewable ways to meet rising energy demands. At the same time, the company is focusing on operational efficiencies and cost-effective expansions, which will smoothen earnings and dividend payouts.
Overall, the company’s diverse revenue streams, contractual framework, and AI-driven capabilities position it well to pay and grow its dividends.
High Yield Dividend Stock No. 2: Whitecap Resources
Whitecap Resources (TSX:WCP) is an attractive high-yield dividend stock to consider now. The Canadian energy producer has consistently returned significant amounts to shareholders through dividends. Moreover, it offers monthly payouts.
It paid out about $2.7 billion in dividends between January 2013 and September 2025. In addition, Whitecap Resources offers a high return of over 6.2%.
Looking ahead, this oil and gas producer continues to focus on optimizing drilling performance, reducing costs and maintaining disciplined capital expenditures. These efforts are intended to keep cash flow strong even as energy prices fluctuate. With a diversified portfolio of assets and a strategy focused on deploying capital in projects with the highest returns, Whitecap strives for sustainable growth.
Moreover, the strong balance sheet is another important advantage. Low debt and a strong inventory of high-quality drilling sites give the company a long runway for future expansion, while maintaining shareholder returns. Whitecap’s recent acquisition of Veren brings additional scale and high-quality assets, expanding the base of long-lived, high-productivity projects.
Whitecap maintains a low and sustainable payout ratio of 20-25% for the base dividend. Moreover, it aims for an annual increase in the basic dividend of 1 to 3% for the long term.
High-yield dividend stock No. 3: Telus
Telus (TSX:T) is an attractive, high-yield investment for income-oriented investors. The Canadian telecom giant has a long track record of higher payouts, supported by its dividend growth program launched in 2011. Since 2004, it has returned more than $28 billion through dividends and buybacks, paying out more than $23 billion in dividends alone.
The company recently extended its dividend growth plan through 2028, targeting annual increases of 3 to 8%. With a quarterly payout of $0.418 per share, Telus currently offers an attractive yield of over 9%.
The high returns are supported by the ability to grow profits and a sustainable payout ratio of 60-75%. Telus continues to expand its PureFibre network and offers attractive bundled services across Canada, increasing customer loyalty and keeping postpaid churn low. Looking ahead, the focus on growing margin-augmenting customers, expected moderation in capital expenditures and steady earnings growth will drive payouts.
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