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Investing in stocks that reliably pay dividends can help generate a steady passive income. Additionally, investors can purchase shares of some of the best dividend-paying companies that offer high yields for as little as $100. These dividend-paying companies have fundamentally sound businesses and are committed to rewarding their shareholders with higher dividend payments.
Against this backdrop, here are three reliable TSX stocks with dividend yields of over 6% that can be purchased for under $100.
Enbridge
Enbridge (TSX:ENB) is one of the most reliable and highest-yielding dividend stocks. The energy infrastructure company is known for paying and increasing its dividends in all market conditions. Plus, its high yield is well covered and offers visibility into future earnings growth, making it a high-income stock.
Enbridge has paid dividends regularly for 69 years. In addition, it has increased its dividend by an average of 10% annually for about three decades. In addition to increasing its dividend, Enbridge stock offers a high yield of about 6.6% based on its closing price of $55.22 on Sept. 23.
Enbridge remains committed to enhancing shareholder value through higher dividends over the long term. The company expects its earnings and distributable cash flow (DCF) per share to grow at a mid-single-digit rate over the next few years, which will likely boost its future payouts.
The company's extensive liquid pipeline network, long-term contractual agreements and high utilization rate will support its future earnings. In addition, the company will benefit from investments in its conventional and clean energy asset base and low-risk utility-like projects, which bodes well for future growth. In addition, accretive acquisitions and productivity initiatives will support its results and dividends in the years ahead.
Telus
With a 6.9% yield and reliable payments, Telus (TSX:T) is one of the top TSX stocks to buy right now. The Canadian telecommunications giant has paid out $21 billion in dividends since 2004 under its multi-year dividend growth program. This payout reflects its ability to consistently deliver profitable growth.
Looking ahead, the communications company plans to increase its dividend by 7-10% annually as part of its multi-year dividend growth program. In addition, Telus' dividend payout ratio of 60-75% is sustainable over the long term.
Telus is investing in its PureFibre network and 5G infrastructure, which will enhance its offering and grow its subscriber base. In addition, Telus’ low churn rate and higher average revenue per user will support its earnings.
Telus’ expansion into high-growth areas such as digital transformation and cybersecurity will accelerate its earnings growth rate and drive higher payouts. Additionally, Telus is focused on accretive acquisitions, expanding its partner ecosystem and boosting its AI capabilities to accelerate growth.
Pizza Pizza Royalty
Pizza Pizza Royalty (TSX:PZA) is another reliable dividend stock that investors might consider buying now. The company operates and franchises a network of fast food restaurants. It offers monthly dividend payments of $0.077 per share and offers a solid 7.1% yield near current levels.
What stands out most is the company's commitment to rewarding its shareholders. Pizza Pizza Royalty distributes all of its cash to investors after setting aside the necessary reserves, thus maximizing returns.
Looking ahead, its diversified revenue streams, expanding restaurant network, strategic menu pricing, and continued investments in technology and food quality will likely bolster its cash flows and future payouts.