Last month, the Bank of Canada cut its key overnight rate from 2.5% to 2.25% – the lowest level since July 2022. In this low interest rate environment, quality dividend stocks with attractive yields can help investors boost their passive income. Their steady payouts also add resilience to portfolios amid continued economic uncertainty. With that in mind, here are my three top dividend picks.
Enbridge
Enbridge (TSX:ENB) remains one of the best dividend stocks to add to your portfolio, thanks to its stable cash flows, consistent dividend growth, and attractive yield. The tolling framework, take-or-pay contracts, long-term renewable energy purchase agreements and low-risk utilities ensure predictable cash flows regardless of market conditions. The company also has minimal exposure to fluctuations in commodity prices because much of its profits are indexed to inflation. Backed by these steady cash flows, Enbridge has increased its dividend by 9% annually over the past thirty years and currently offers a robust yield of 5.6%.
The Calgary-based energy infrastructure giant recently added $7 billion in new projects, expanding its secured capital backlog to $35 billion. Management plans to invest $9 billion to $10 billion annually to advance these projects, many of which will come online in 2030. As these investments materialize, Enbridge expects to see growth in EBITDA (earnings before interest, taxes, depreciation and amortization), EPS (earnings per share) and DCF (discounted cash flows)/share through the end of the decade.
With these initiatives, the company expects to return $40 to $45 billion to shareholders over the next five years. Given the strong fundamentals and visibility of long-term growth, I remain bullish on Enbridge.
Telus
Another high-yield Canadian dividend stock I’m bullish on is Telus (TSX:T), which has increased its dividend 29 times since May 2011 and currently offers an impressive yield of 9.2%. Like other major telecom players, Telus benefits from stable, recurring revenue generated through long-term subscriptions and service contracts, which support strong, predictable cash flows – and enable consistent dividend growth.
The demand for telecommunications services continues to rise due to the digitalization of businesses, the rapid adoption of the Internet of Things (IoT) and the increasing prevalence of remote working and online learning. To meet this growing demand, Telus plans to invest $70 billion to expand its 5G and broadband networks through 2029. The company also plans to use these investments to build AI (artificial intelligence) data centers and support various technology initiatives.
These long-term growth engines strengthen Telus’ ability to sustain future dividend increases, making the stock an attractive buy for income-oriented investors.
SmartCentres REIT
My final pick is SmartCentres REIT (TSX:SRU.UN), which offers monthly dividends with a yield currently at 7.1%. The Toronto-based REIT owns and operates 197 properties strategically located across Canada, giving approximately 90% of Canadians access to at least one of its stores within a 10-kilometre radius. It also benefits from a strong tenant base, with most tenants having a regional or national footprint and around 60% providing essential services. As a result, SmartCentres enjoys a healthy occupancy rate, which stood at 98.6% in the latest Q3 results.
SmartCentres continues to expand its asset base and has opened three self-storage facilities this year, bringing the total to 14. The projects under construction in Montreal and Laval are expected to open next year, while the developments in Burnaby and Victoria are planned for 2027. In addition to these short-term projects, the REIT has a substantial development pipeline of approximately 86 million square feet in residential, retail, senior living, self-storage and office categories.
Given the strong growth pipeline, the rising demand for retail space and the attractive returns, I remain optimistic about SmartCentres.
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