Last week, the Bank of Canada cut its benchmark interest rate by 25 basis points to 2.5%, citing a softening labour market and declining inflation. Economists are anticipating at least one more rate reduction before year-end. In this low-rate environment, income-seeking investors may find strong opportunities in high-yield Canadian dividend stocks. Here are two such stocks currently offering yields above 6% that can help generate stable passive income.
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Telus (TSX:T)
Telecommunications providers are known for their stable cash flows, thanks to their recurring, subscription-based revenue models—making them well-suited for consistent dividend payouts. One standout is Telus, which has raised its dividend 28 times since initiating its growth-oriented dividend program in May 2011. Its current quarterly dividend of $0.4163 per share translates to a forward yield of 7.58%.
The demand for telecom services continues to grow amid digital transformation across businesses and the ongoing shift to remote work and online learning. Telus is investing approximately $70 billion through 2029 to expand its 5G and broadband infrastructure, aiming to grow its customer base.
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Beyond telecom, the company’s Telus Health division is also delivering solid performance, driven by strategic investments, innovation, and a growing distribution network. The company is also optimizing operations through technology to reduce costs and improve margins.
Telus is actively managing its balance sheet, targeting a net debt-to-EBITDA ratio of 3 by the end of 2027—down from 3.7 in Q2. A recent transaction, in which Telus sold a 49.9% stake in its wireless towers to La Caisse for $1.26 billion, will reduce this ratio by 0.17 and help accelerate deleveraging. Given its strong outlook, improving financials, and high dividend yield, Telus is a compelling choice for income-focused investors.
SmartCentres Real Estate Investment Trust (TSX:SRU.UN)
Real estate investment trusts (REITs) are required to distribute at least 90% of their taxable income to shareholders, making them a natural fit for dividend-oriented portfolios. One attractive option is SmartCentres REIT, which owns and manages 197 mixed-use properties across Canada. Impressively, 90% of the population lives within 10 kilometres of one of its centers.
The REIT’s portfolio is anchored by a stable base of national and regional tenants—over 95% of which fall into those categories—with 60% offering essential services. As a result, SmartCentres maintains a strong occupancy rate of 98.6%, as of Q2.
Retail space demand remains robust, driven by population growth and tight vacancy rates. At the same time, high construction costs and elevated interest rates have limited new supply, pushing demand toward existing properties. SmartCentres is taking advantage of this environment with a significant development pipeline, including 58.9 million square feet approved for future growth and 0.8 million square feet already under construction.
These initiatives, along with steady lease renewals, are expected to bolster future cash flows. The REIT currently pays a monthly dividend of $0.1542 per share, offering a forward yield of 6.96%—making it an attractive option for long-term income generation.
With interest rates trending downward and market volatility persisting, high-dividend Canadian stocks like Telus and SmartCentres REIT present compelling opportunities for those seeking steady, inflation-resistant income.
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