Top 4 Canadian Stocks with 4%+ Yields

Top Canadian Stocks with Yields Over 4% to Consider

Investors looking for reliable income from their portfolios have several Canadian stocks to choose from. However, it's important to focus on more than just the dividend yield. A high yield can be misleading if it comes at the expense of capital growth or financial stability. Here are four Canadian stocks that offer attractive yields along with strong fundamentals and potential for growth.

Pembina Pipeline: A Reliable Energy Infrastructure Play

Pembina Pipeline (TSX: PPL) is a leading energy infrastructure company in Western Canada. It operates a diversified network of pipelines that transport crude oil and natural gas, making it essential for many producers to get their products to market. The company is known for its strong operational performance, with a track record of completing projects on time and under budget.

Pembina generates consistent free cash flows from its contracted businesses, which supports its dividend. Currently, the stock offers a 5.6% dividend yield. Additionally, the company has a strong balance sheet that allows it to invest in major projects, such as an LNG terminal in British Columbia. This project could provide significant earnings growth in the future.

Canadian Natural Resources: A Strong Energy Producer

Canadian Natural Resources (TSX: CNQ) is the largest energy producer in Canada, with over 1.5 billion barrels of energy equivalent in production. Its low-cost production model makes it resilient in different energy environments. Even during periods of lower prices, the company continues to generate substantial cash flow.

The company has maintained a streak of 25 consecutive years of dividend increases, reflecting its strong financial position. Today, it offers a 5.4% dividend yield. With over 30 years of proven reserves, Canadian Natural Resources is well-positioned to continue delivering value to shareholders.

First Capital Real Estate Investment Trust: A Solid Retail Property Holder

First Capital Real Estate Investment Trust (TSX: FCR.UN) owns prime retail properties across Canada. Its urban-focused portfolio ensures steady demand from tenants and customers. The trust has consistently achieved 3–5% annual rental rate growth, supported by strong occupancy rates and an improving balance sheet.

FCR.UN trades at a discount to its private market value, making it an attractive buy for income-focused investors. The stock currently offers a 4.9% dividend yield, which is considered very safe. Investors can hold this stock for long-term income while benefiting from the appreciation of its high-quality assets.

BSR Real Estate Investment Trust: A U.S. Residential Exposure Option

BSR Real Estate Investment Trust (TSX: HOM.UN) provides exposure to the U.S. residential real estate market through its portfolio of garden-style communities in Texas. Texas is experiencing strong economic and population growth, driving up demand for housing despite recent supply increases.

BSR has demonstrated smart capital allocation by upgrading older properties to higher-quality units with better rental growth potential. Despite its solid management, the stock is currently trading at a discount compared to U.S. peers and private market valuations. It offers a 4.3% distribution, making it an appealing choice for investors seeking income.

Additional Insights and Recommendations

While these four stocks offer attractive yields, it’s crucial to conduct thorough research before investing. Each company has its own risks and opportunities, and investors should align their choices with their financial goals and risk tolerance.

Diversifying your portfolio across sectors and geographies can help mitigate risk while still capturing the benefits of dividend income. Whether you're focused on energy, real estate, or other industries, there are multiple ways to build a sustainable income stream from Canadian stocks.

By carefully evaluating each investment and considering factors beyond just the dividend yield, investors can make informed decisions that support long-term financial success.