3 Canadian Dividend Stocks Yielding Up to 6.5% Worth Owning When Growth Falls Out of Favour

2026-05-11 11:45:00 ET

Canadian dividend stocks can be attractive investments, especially during periods when growth stocks lose momentum. These companies tend to provide reliable income through regular dividend payments, regardless of market volatility.

That said, investors should focus on high-quality dividend stocks supported by strong fundamentals and consistent earnings growth. Companies with healthy balance sheets and sustainable profitability are better positioned to maintain their dividends over time.

With that in mind, here are three Canadian dividend stocks offering yields of up to 6.5% worth owning when growth falls out of favour.

Dividend stock #1: SmartCentres REIT

SmartCentres REIT ( TSX:SRU.UN ) is an attractive stock to own when growth falls out of favour. The REIT distributes $0.154 per unit monthly, offering an attractive annual yield of about 6.5%.

Its dividend remains well-supported by resilient cash flow generated from a high-quality portfolio of retail and mixed-use properties in prime locations. Strong occupancy, steady leasing demand, and the ability to increase rent continue to drive stable net operating income (NOI). The REIT also benefits from a financially strong tenant base, which supports consistent rent collection and lowers risk.

SmartCentres delivered solid results in 2025, ending the year with an occupancy rate of 98.6% and rent collection above 99%. Leasing activity remained strong, and renewal rental rates rose 8.4%, excluding anchor tenants.

Beyond retail, the REIT is expanding into mixed-use developments, which is diversifying its revenue. Further, its solid balance sheet and substantial land holdings position it well to deliver strong growth going forward and sustain monthly distributions.

Dividend stock #2: Enbridge

Enbridge ( TSX:ENB ) is another top dividend stock to own even during economic slowdowns. The company operates extensive oil and natural gas pipeline networks, generating stable cash flow from highly utilized infrastructure assets.

It has paid dividends for over seven decades and increased them consistently since 1995. With a current yield of about 5.3%, it remains a compelling income stock.

Its earnings are supported by regulated operations and long-term contracts, which help shield revenue from commodity price swings. This stability allows the company to maintain reliable shareholder payouts while continuing to invest in growth.

Enbridge targets paying 60–70% of distributable cash flow as dividends, leaving room to fund expansion projects and preserve financial flexibility.

The company expects steady long-term growth, supported by a $39 billion secured project backlog, rising energy demand from data centres, and expanding renewable energy investments. Its diversified business model and dependable income stream continue to make Enbridge a compelling long-term investment.

Dividend stock #3: BCE

BCE ( TSX:BCE ) stock could be a solid addition to your portfolio. Canada’s leading communications and media giant has a strong history of paying dividends to shareholders. Last year, however, it reduced its annual dividend from $3.99 to $1.75 per share due to tougher competition, regulatory challenges, and rising costs.

While the cut disappointed investors, it was aimed at improving BCE’s financial stability and protecting future payouts. The company is now focusing on reducing debt, strengthening its balance sheet, and keeping more cash within the business.

Management is targeting a dividend payout ratio of 40% to 55% of free cash flow, which appears more sustainable over time. Even after the reduction, BCE still offers an attractive dividend yield of about 5.2%.

BCE is likely to sustain its payouts benefitting from diversified operations, including wireless services, fiber broadband, AI-powered enterprise solutions, and media assets. With a focus on improving margins and customer retention, the company is positioned to deliver steady cash flow and maintain its dividend payments.

The post 3 Canadian Dividend Stocks Yielding Up to 6.5% Worth Owning When Growth Falls Out of Favour appeared first on The Motley Fool Canada .

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy .

2026