Do you want a return of 5%? The 3 TSX Stocks to Buy Today

Last month, the Bank of Canada cut its key interest rate by 25 basis points to 2.25%. In this low interest rate environment, investors should consider adding quality dividend stocks to their portfolios to generate stable and attractive passive income. Thanks to their regular payouts, these companies also tend to be less sensitive to market volatility, providing more stability for investors. With that in mind, here are three top TSX stocks currently offering dividend yields above 5%.

Canadian natural resources

Canadian natural resources (TSX:CNQ) is a major oil and natural gas producer with operations concentrated in Western Canada, the North Sea and Offshore Africa. Its diversified and well-balanced asset base, combined with efficient operations, allows the company to maintain a lower breakeven point than many of its peers, supporting strong profitability and robust cash flows. These healthy cash flows have enabled CNQ to increase its dividend at an impressive 21% annualized rate for 25 consecutive years, while the forward dividend yield stands at 5.2%.

Meanwhile, CNQ continues to expand its asset base through a planned $6.6 billion capital investment this year, including an additional $690 million in unbudgeted net acquisition capital. The company also plans to invest $6.4 billion next year to further improve its manufacturing capabilities. With these investments, management expects a 3% increase in production in 2026 compared to 2025. Given the substantial and high-quality reserves, these expansion initiatives could increase both sales and profits, strengthening the company’s ability to continue increasing its dividend.

Enbridge

Enbridge (TSX:ENB) operates a pipeline network that transports oil and natural gas through a toll system and long-term take-or-pay contracts. It also provides regulated utilities and produces renewable energy through facilities supported by long-term power purchase agreements (PPAs).

The company earns approximately 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from contracted businesses, while 80% of its adjusted EBITDA is indexed to inflation. Therefore, the financial values ​​are less sensitive to economic cycles and market volatility, generating healthy and predictable cash flows that enable consistent dividend payments. Meanwhile, Enbridge has paid dividends for the past seventy years and has also increased its dividend by 9% annually since 1995. Currently, the company offers a forward dividend yield of 5.6%.

Additionally, the Calgary-based energy company continues to expand its asset base through its annual capital investment of $9 billion to $10 billion. Together with these expansions, Enbridge’s improving financial position, with a net debt/adjusted EBITDA of 4.8, could support future dividend growth.

Telus

My final choice is Telus (TSX:T), which has increased its dividend many times since launching its multi-year dividend growth program in May 2011. Telecom companies generate a significant portion of their revenue from recurring sources and provide strong and stable cash flows that support higher dividend payments. Telus currently offers an impressive dividend yield of 8.1%.

Meanwhile, demand for telecommunications services continues to rise due to increasing digitalization, the expansion of remote working and the growth of e-learning – factors that broaden Telus’ addressable market. The company plans to invest approximately $70 billion over the next five years to improve its 5G and broadband networks, develop artificial intelligence data centers and support various technology initiatives. It is also expanding its healthcare segment through strategic investments, innovative product launches, broader sales channels and disciplined cost management.

Given these strong growth drivers, Telus expects to increase its dividend by 3 to 8% annually through 2028, making it an attractive long-term investment opportunity.