3 Dividend Stocks Offering High Yield Income Investors May Want Now

With Spain’s inflation recently climbing to 4.3% YoY, dependable income from dividends looks especially valuable as everyday costs stay under pressure. Investors who want their portfolio to work harder for them often look to Dividend Powerhouses, companies with yields above 5% that aim to keep payouts well covered, growing and stable. This article highlights three such stocks from the screener that merit a closer look now.

The three stocks below are just a starting sample from this idea. The full screen surfaced 8 more companies with equally compelling dividend narratives that are not covered in the article. To identify and analyze the highest conviction high yield opportunities that fit your own criteria, head straight into the Dividend Powerhouses (3%+ Yield) screener.

Peyto Exploration & Development (TSX:PEY)

Peyto Exploration & Development is a Calgary based producer that focuses on natural gas and natural gas liquids in Alberta’s Deep Basin, which is the cash engine behind its high dividend policy. The company generated about CA$1.2b in revenue from Oil & Gas Exploration & Production, all from Canada, and has a market cap of roughly CA$5.1b.

Income investors may be drawn to Peyto because its Alberta Deep Basin gas production directly funds a high monthly dividend, supported by strong recent profitability, with net margins around 40.2%. Long term gas supply agreements, including LNG linked contracts, and recent Q2 results that showed solid funds from operations and debt reduction, point to efforts to keep that payout covered. The trade off is clear: earnings are expected to soften in coming years and the dividend track record is not perfectly smooth, so the appeal of a high yield comes with real commodity and policy risk that investors need to weigh carefully.

Peyto’s rich cash flow story can look straightforward, yet the real tension between its high monthly payout and commodity risk sits beneath the surface. See how that balance currently stacks up in the 4 key rewards and 3 important warning signs (1 is major!)

Freehold Royalties (TSX:FRU)

Freehold Royalties is a Calgary based company that owns mineral and royalty interests and earns a share of production from third party operators, which keeps cash flows closer to fee like income than a typical producer and aligns well with the Dividend Powerhouses theme. In 2025 it generated about CA$322 million from Oil & Gas Exploration & Production royalties across Canada and the US, with revenue roughly split between the two regions, and it has a market cap of about CA$2.9b.

Freehold Royalties may appeal to investors who want income that is closely tied to real barrels in the ground rather than day to day operating costs. Its royalty model converts a large share of revenue into funds from operations. Recent quarters showed record FFO, higher commodity driven revenue and lower net debt, which together help support a 6.05% yield. At the same time, payout ratios that have often run above 100% of earnings and exposure to oil and gas prices mean that dividend security is not a given. The central question is whether this mix of high yield, fee like cash flows and US heavy Permian exposure justifies accepting commodity price swings and coverage risk. The latest reserves data, drilling activity and new CFO appointment begin to address this but do not fully settle it.

Freehold Royalties’ high yield and fee like cash flows look powerful on paper, yet the real story sits in how coverage, commodity exposure and US growth ambitions fit together in the 2 key rewards and 1 important major warning sign

Manulife Financial (TSX:MFC)

Manulife Financial is a global financial services group that sells life insurance, annuities and investment products, with its Insurance and Annuity segment playing a key role in underpinning the kind of recurring cash flows that can support a dependable 3%+ dividend. The largest slice of revenue comes from Global Wealth and Asset Management at about CA$7.2b, followed by Asia at CA$4.8b, Canada at CA$3.2b and Corporate and Other at CA$809 million. This shows how diversified the business is beyond pure insurance. Manulife Financial has a market cap of roughly CA$99.5b.

Income focused investors may want to look closely at Manulife Financial because it pairs a 3.24% dividend with long duration insurance and annuity cash flows and a growing global wealth business. Recent AI focused wins in Asia, strong Q2 core earnings and a CA$3.2b long term care reinsurance deal with Munich Re all point to management working to keep that payout well supported while freeing up capital for buybacks. There are also risks, including credit risk in the U.S., regulatory shifts in Hong Kong and relatively low current ROE that could all influence future dividend growth. How those factors interact over the next few years will matter for anyone relying on Manulife for steady income.

Manulife’s long term insurance cash flows, wealth revenue and recent reinsurance deal could be reshaping its income story in ways the headline yield does not show. See how the full picture looks in the analysis report for Manulife Financial

Seeking Fresh Alternatives Beyond Dividends?

Markets move fast and fresh stock ideas can move from under the radar to widely followed very quickly. Use these curated screens before the crowd catches up.

• Capture potential big movers early by scanning the 8 high quality undiscovered gems while they are still under the radar for now and before momentum traders respond.
• Target resilient portfolio anchors by reviewing the list of solid balance sheet and fundamentals (12 results) and focusing on companies where strong finances may help keep volatility and surprise risks in check.
• Look at infrastructure and hardware opportunities by checking the 55 AI infrastructure stocks before sentiment shifts and valuations change.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com