Are you looking for income from high-yield stocks?
While the highest yield isn’t always the best investment, it’s a good place to start looking for income from stocks.
Based on stock price, which can move up or down depending on company news and performance, the list will change. As such, the opportunities will vary every month and that’s why it’s important to have a systematic approach to understanding which high-yield stocks are an opportunity.
An opportunity can be for a stock you already own or simply for a new addition to your portfolio. It is important to note that the rankings below do not assess the viability of the business.
Top 5 Canadian High Yield Stocks
This month’s results are a snapshot in time at the time of writing and many factors could change the rankings. It’s important to be aware that a high-yield stock can either be a good income source or a warning sign for the dividend.
Do look further into their payout strategy and history before committing to a high-yield stock to avoid unnecessary risks on your portfolio. If a high yield is necessary, look at the Canadian Financial ETFs, they also pay a sustainable high yield.
Be aware that high-yield stocks could be as dangerous as investing in Canadian penny stocks. However, some of the best ongoing high-yield stocks can fit in your portfolio during the accumulation years with DRIP enabled.
Canoe EIT Income Fund
tse:eit.un | Financial Services | Asset Management- Grade: C
- Market Cap: 2.38B (Mid Cap)
- P/E: 19.40
- Dividend Yield: 8.57%
- Dividend Aristocrat: NO
- Dividend Growth Fit: 4/10
- Dividend Income Fit: 8/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Allied Properties REIT
tse:ap.un | Real Estate | REIT - Office- Grade: C
- Market Cap: 2.16B (Mid Cap)
- P/E: 0.00
- Dividend Yield: 11.66%
- Dividend Aristocrat: YES
- Dividend Growth Fit: 3/10
- Dividend Income Fit: 9/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Enbridge
tse:enb | Energy | Oil & Gas Midstream- Grade: B
- Market Cap: 134.54B (Large Cap)
- P/E: 26.38
- Dividend Yield: 6.11%
- Dividend Aristocrat: YES
- Dividend Growth Fit: 5/10
- Dividend Income Fit: 8/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
BCE
tse:bce | Communication Services | Telecommunication Services- Grade: D
- Market Cap: 29.85B (Large Cap)
- P/E: 179.89
- Dividend Yield: 12.32%
- Dividend Aristocrat: YES
- Dividend Growth Fit: 5/10
- Dividend Income Fit: 0/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
SmartCentres REIT
tse:sru.un | Real Estate | REIT - Retail- Grade: C
- Market Cap: 4.20B (Mid Cap)
- P/E: 18.20
- Dividend Yield: 7.51%
- Dividend Aristocrat: NO
- Dividend Growth Fit: 2/10
- Dividend Income Fit: 6/10
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
Methodology
The identified high-yield stocks are selected from the Canadian Dividend Screener, covering over 170 of the top Canadian stocks.
Please note that generating income with a high yield is a great short-term reward, but it’s not without risks. Either a dividend cut is imminent or growth is limited. Make sure you look for the right stock for your portfolio and that you understand the business you are investing in. I like to look at the Chowder Score to assess growth for both the stock appreciation and the dividend.