2 Safer, High-Yield Dividend Stocks for Canadian Retirees

By Karen Thomas, MSc, CFA at The Motley Fool Canada

Finding yield in today’s environment is not easy. Yields on safe investments like government bonds are negligible. Even corporate bond yields are lacking. So how can Canadian retirees get the income they need to support their retirement needs? Well, maybe by considering high-yield dividend stocks.

Let’s take a look at two high-yield dividend stocks that are good options for safe and reliable income.

Enbridge

As one of North America’s leading energy infrastructure companies, Enbridge Inc. (TSX:ENB) has proven its staying power and its reliability as a dividend payer. Today, the stock is yielding a very generous 5.4%. In my opinion, this high yield does not carry the risk that it implies. It is, therefore, a really attractive option if you’re in search of high-yield dividend stocks.

To further the investment case for Enbridge, let’s review the company’s business as well as its dividend history. The thing about Enbridge that sets it apart as a low-risk dividend stock is its low-risk business. This business includes a utilities segment, a gas transmission segment, and a gas distribution segment.

The revenues from these businesses are protected by either regulation or long-term contracts. This breeds consistency and reliability, which is reflected in Enbridge’s long-term results. For example, Enbridge has 31 consecutive years of dividend increases under its belt. Also, management has met its guidance for 20 consecutive years. This all speaks to the predictability of Enbridge’s business – something we want to look for in a dividend stock.

Today, Enbridge continues to thrive and look forward to many opportunities for growth. In its latest quarter, the company achieved record earnings and cash flows, as strong energy demand supported strong volumes and asset utilization. Looking ahead, Enbridge’s growth backlog has increased 35% since the company’s investor day last March.

All of this makes Enbridge one of the best dividend stocks in Canada and one that retirees should consider.

Telus

As a leading telecom company, Telus Corp. (TSX:T) has been hit by the changing and challenging environment for Canadian telecoms. Increased competition, falling mobile prices, and a heavy debt load took their toll. This led Telus to put a halt on its dividend growth program. All of this sent Telus’ stock tumbling. As you can see from the graph below, Telus’ stock has fallen 35% in the last three years.

But here we are today. Telus is a high-yield dividend stock, yielding 9%, and Canadian retirees have the opportunity for some serious yield. Management has committed to recovery – boosting its cash flows and its reputation as one of the most reliable dividend growth stories.

In 2025, Telus continued to work to reduce debt and strengthen the business. Earnings per share (EPS) increased 9%, and operating cash flow was consistent with the prior year. Looking ahead, Telus expects 2026 to see modest growth in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of 2% to 4%. The company also expects 10% growth in free cash flow, as it reduces capital expenditures and focuses on synergies and efficiencies.

Telus is one of the best dividend stocks in Canada today, offering investors an opportunity for an almost 9% yield. There are certainly some challenges that Telus is facing, but I think the diversity of its business as well as its growth prospects make it a smart bet.

The post 2 Safer, High-Yield Dividend Stocks for Canadian Retirees appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has positions in Enbridge and Telus. The Motley Fool recommends Enbridge and TELUS. The Motley Fool has a disclosure policy.

2026