Dividend stocks are facing stiffer competition from government bonds as bond yields rise. Today, I am going to look at three dividend stocks that currently offer yields significantly higher than Canadian government bonds.
A key challenge with high-yielding dividend stocks is assessing their sustainability. Credit analysis is a core element of such an assessment, but looking at the level of insider commitment can also be helpful. If insiders buy a stock with a high yield, they are signalling confidence about the stock’s prospects. With that in mind, I am focusing on three high-dividend payers with net insider buying over the past six months.
First, let me add an important consideration. Generally, insiders can be as susceptible as anyone to wishful thinking. Even if insiders have bought a stock that cuts or halts a dividend, they will likely continue to receive their paycheque from the company as downward dividend adjustments are made to defend the financial situation at the firm.
In other words, insiders who bought the stock may still get their paycheques, even if shareholders see their payouts reduced or eliminated. The risk is not symmetrical.
The stock of enterprise software company Enghouse Systems Ltd. ENGH-T has slipped 8.2 per cent over the six months that ended July 31, as investors worried about the impact artificial intelligence would have on the company’s business.
Revenue for the second quarter that ended April 30 was down 8.4 per cent from Q2 2025. But net income was $16.3-million, or 30 cents per share, up from $13.5-million, or 24 cents per share, in the comparable period. The improvement was helped by a 13.4-per-cent reduction, year-over-year, in Q2 operating costs.
Enghouse used $16.4-million in cash to pay a dividend of 31 cents per share for the quarter, which was supported by $31.6-million in net cash provided by operating activities.
In Enghouse’s Q2 conference call, chairman and chief executive Stephen Sadler addressed the AI issue. He indicated that the company is exploring the use of leading language models for internal productivity enhancements and building solutions that offer a return on investment.
Investors may be fretting over the impact of AI on Enghouse’s business, but on June 12, director Paul Stoyan bought a total of 10,000 common shares in the public market at an average price of $16.06.
Vital Infrastructure Property Trust’s VITL-UN-T portfolio consists of 58 inpatient facilities, 73 outpatient facilities, and three other health research facilities throughout North America, Brazil, Europe and Australia. Its assets are either owned in partnership with institutional investors or owned directly by the real estate investment trust. It currently pays a monthly distribution of 3 cents per unit, or 36 cents per unit prospectively on an annual basis, which represents a yield of 6.4 per cent based on its July 31 close of $5.59.
In the first quarter, the REIT reported a net loss attributable to unitholders of $3.8-million, or 2 cents per unit, a deterioration from a loss of $890,000, or nil per unit, in Q1 2025. However, the REIT reported adjusted funds from operations (a non-GAAP measure) of 10 cents per unit, the same as the comparable period a year earlier. For Q1, that represents a reported payout ratio of about 87 per cent. The REIT will report Q2 results on Aug. 12 after the markets close.
The REIT’s unit price has been range-bound over the past six months, and insiders have been buying. During the period, two insiders were net buyers of a total of $454,983 worth of units. Trustee Peter Aghar was the most recent buyer, picking up 50,000 units at an average price of $5.28 from June 3 to June 19.
Small-cap Petrus Resources Ltd. PRQ-T provides a monthly distribution of one cent per share, or 12 cents per share prospectively on an annual basis, for a prospective annualized yield of 6.9 per cent as of its July 31 close of $1.73.
In Q1, Petrus used $1.2-million to pay dividends. Capital spending on drilling and other activities was $21.5-million. Petrus reported funds flow per share (a non-GAAP measure) of $13.3-million, or 10 cents per share, compared to $12.5-million, or 10 cents per share, in Q1 2025.
On July 30, the company released its production report for June. Estimated production averaged 12,010 barrels of oil equivalent per day, weighted approximately 64 per cent natural gas and 36 per cent liquids. June provided a good picture of overall production after the recent acquisition of oil-weighted Cardium assets in the Harmattan area of central Alberta. Petrus expects an average production of 11,000 to 12,000 boe/d in 2026, annual funds flow of $60-million to $65-million, and year-end net debt of $75-million to $80-million.
Over the past six months, Petrus stock is down 7.5 per cent and insiders have spent $324,566 acquiring shares, when both option exercises and public-market transactions are included.
In all, a net 35,954 shares were sold into the public market, while 222,980 shares were acquired through option exercises, representing a net acquisition of 187,026 shares. Generally, it can be a bullish sign when insiders exercise options and do not sell all their newly acquired shares into the public market.
Ted Dixon is CEO of INK Research, which provides insider news and knowledge to investors.