What are we looking for?
Canadian dividend payers offering sustainable yields above 5 per cent – made all the more attractive given the Central Bank’s latest chop to its benchmark rate.
The screen
The TSX Composite is down roughly 6 per cent since its high in January. That drop reflects tariff-induced economic uncertainty, which has lowered the prices of even high-quality Canadian stocks. On the flip side, that slide has driven up many dividend yields above 5 per cent.
The highest yields among them are especially attractive given the Bank of Canada’s move Wednesday to shave another quarter percentage point off its benchmark rate. Lower rates generally lower the appeal of fixed-income investments while bolstering investor interest in competing dividend stocks.
Still, our analyst team at TSI Network recommends caution: A high yield often signals danger rather than a bargain if it reflects widespread investor skepticism about the…
