- Despite the unpredictability, few Canadian companies have regularly placed money into the pockets of their shareholders.
- Dividend-paying stocks could help shareholders generate passive income amid volatility.
- The Bank of Canada recently raised interest rates again to control inflation.
The stock market is still volatile due to concerns about the economy slowing down due to rising interest rates and record-high inflation. Meanwhile, supply and labour constraints continue to impact Canadian firms' financials and, as a result, their stock prices.
Despite the unpredictability, few Canadian companies have regularly placed money into the pockets of their shareholders by paying dividends frequently and increasing them.
If you are looking to diversify your investment portfolio, we have shortlisted five stocks that yield over five per cent. Let's look at them:
Great-West Lifeco Inc. (TSX:GWO)
It is one of Canada's leading insurance services companies, and the GWO stock remains among the top stocks in the country. On Monday, around 6.6 million GWO shares were exchanged at the Toronto Stock Exchange.
The GWO stock has a dividend yield of 5.9 per cent, and it distributed a quarterly dividend of C$ 0.49 per unit. In the first quarter of 2022, Great-West Lifeco's net earnings payable to common shareholders was C$ 809 million compared to C$ 739 million in Q1 2021.
In April, the company said that its subsidiary, Empower in the United States, completed the acquisition of Prudential Financial Inc.'s full-service retirement business.
SmartCentres Real Estate Investment Trust (TSX:SRU)
It is a commercial and residential real estate investment trust (REIT) with about 174 strategically positioned assets across Canada. Under its wholly-owned residential sub-brand, SmartLiving, the company develops comprehensive and integrated communities in its existing retail locations.
In Q1 2022, SmartCentres' net income and comprehensive income were C$ 370.1 million compared to just C$ 60.6 million in the first quarter of 2021.
Compared to the same period in 2021, cash flows from operating operations grew by C$ 23.3 million to C$ 102.8 million. The SRU stock holds a dividend yield of 6.3 per cent, and it distributed a monthly dividend of C$ 0.154 per unit.
Enbridge Inc. (TSX:ENB)
One of the largest oil and gas companies in Canada, Enbridge always attracts investors' attention, and its dividend yield is one of the factors behind its popularity among retail investors.
During the trading session on Monday, 10.17 million ENB shares exchanged hands on the TSX, and it closed at C$ 59.27 per share after surging 0.6 per cent.
Enbridge holds a dividend yield of 5.8 per cent, and its return on equity is 10.6 per cent.
Manulife Financial Corporation (TSX:MFC)
Amid rising interest rates, it is believed that financial services companies would capitalize on the central bank's move. Shares of Manulife have recorded increased trading activity, and on June 6, 17.43 million MFC shares were traded on the TSX, and it closed at C$ 23.61 per share after rising 1.4 per cent.
Notably, the financial services company had posted solid financial results in Q1 2022 and said it achieved a net income of C$ 3 billion compared to C$ 2.2 billion in Q1 2021.
The MFC stock's dividend yield is around 5.7 per cent and frequently provides returns to shareholders.
TransAlta Renewables Inc. (TSX:RNW)
During the second quarter of 2022, TransAlta Renewables plans to complete the rehabilitation plan for the Kent Hills 1 and 2 wind facilities and close talks with New Brunswick Power Corporation and project lenders.
Meanwhile, TransAlta Renewables' adjusted EBITDA increased by 13 per cent YoY C$ 139 million and free cash flow increased to C$ 108 million.
The RNW stock's dividend yield is around 5.4 per cent.
Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.