The search for income in Canadian equity markets has intensified in 2026. With the overnight rate holding at 2.75% and the 10-year Government of Canada bond yielding just 3.42%, investors willing to accept some equity risk are finding that a growing number of TSX-listed dividend stocks offer significantly superior income with the added potential for capital appreciation.
Plauste screened for TSX-listed companies meeting three criteria: a current dividend yield above 5%, a payout ratio below 80% of earnings or distributable cash flow, and a buy or outperform rating from at least five Bay Street analysts. Here are the five that made the cut.
1. Enbridge Inc. (ENB) — Yield: 7.2%
Canada's largest pipeline company has raised its dividend for 29 consecutive years, making it one of the longest streaks on the TSX. The current quarterly dividend of $0.915 per share translates to an annual yield of 7.2% at current prices. Enbridge's regulated pipeline network generates highly predictable cash flows under long-term contracts, providing substantial visibility into future distribution capacity. Bay Street consensus is 12 buys, 4 holds, 0 sells.
2. BCE Inc. (BCE) — Yield: 8.9%
Canada's largest telecommunications company offers the highest yield on this list, though the elevated payout reflects a period of significant capital investment in fibre and 5G infrastructure that has weighed on free cash flow. Management reiterated dividend guidance at the company's investor day in May, and the balance sheet remains investment-grade. Yield-hungry investors should note the payout ratio is elevated at approximately 112% of free cash flow, making dividend sustainability the key risk to monitor. 9 buys, 6 holds, 2 sells.
3. Pembina Pipeline Corp. (PPL) — Yield: 5.8%
Pembina is one of the most consistent dividend payers in the Canadian energy infrastructure sector, with a 26-year track record of uninterrupted payments. The company's focus on fee-for-service pipeline and midstream assets provides revenue predictability, and the payout ratio of 68% of distributable cash flow leaves ample room to sustain and grow the dividend. 14 buys, 3 holds, 0 sells.
4. Slate Retail REIT (SRT.U) — Yield: 6.4%
Canadian REITs have returned to favour as rate expectations stabilise, and Slate Retail's focus on necessity-based retail anchored by grocery stores provides recession resilience. The trust's US-focused portfolio benefits from the stronger USD and a favourable lease renewal environment. Occupancy has remained above 93% for 11 consecutive quarters. 7 buys, 2 holds, 0 sells.
5. Keyera Corp. (KEY) — Yield: 5.2%
Keyera's integrated midstream business connecting Alberta's natural gas liquids producers to end markets gives it structural advantages that smaller competitors cannot easily replicate. The company's KAPS pipeline, completed in 2023, is ramping volumes faster than management initially projected, supporting both cash flow growth and the case for further dividend increases. The 19-analyst consensus is 11 buys, 7 holds, 1 sell.