Great West Lifeco And 2 Canadian Dividend Stocks To Own

With the Bank of Canada weighing its next policy steps, higher for longer interest rates keep borrowing costs elevated and push many investors toward cash. Yet reliable Canadian dividend payers offering yields above 5% can turn that caution into a steady income stream. This article walks through three stocks from a high yield, well covered dividend screen that could help anchor the income side of your portfolio.

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

Great-West Lifeco (TSX:GWO)

Great-West Lifeco is a Winnipeg based financial services group that offers life and health insurance, retirement savings plans, annuities, wealth and asset management, and reinsurance across Canada, the United States, and Europe. Its role in the Dividend Powerhouses theme stems from cash flows generated by brands like Canada Life, Empower, and Irish Life, which support a long running pattern of paying and growing shareholder dividends. Revenue is diversified, with about CA$12.4b from Canada, CA$8.6b from Europe, CA$6.2b from the United States, CA$5.6b from Capital and Risk Solutions, and CA$446m from Corporate activities, and the company has a market cap of roughly CA$80.9b.

For income focused investors, Great-West Lifeco combines a 3.01% dividend yield with cash flows tied to long term life insurance, annuity, and retirement products, which can support a stable payout profile. Recent results show higher earnings and ongoing buybacks, as the company has repurchased about CA$925m of stock since early 2026. This activity reflects management’s focus on capital returns, including its dividend. The trade off is a P/E that sits above some insurance peers and a funding structure reliant on external borrowing rather than deposits, which can add sensitivity if credit conditions tighten. The full story behind how this mix of retirement exposure, capital returns, and funding risk fits the Dividend Powerhouses theme is a key consideration for patient dividend investors.

Great-West Lifeco’s mix of retirement exposure, buybacks, and a 3.01% yield can look straightforward. Yet the real story sits in how those cash flows stack up against its funding risks in the analysis report for Great-West Lifeco.

Canadian Natural Resources (TSX:CNQ)

Canadian Natural Resources is a large Canadian oil and gas producer whose upstream cash flows help support a high, well covered dividend that fits the Dividend Powerhouses theme. Most revenue comes from Exploration and Production in North America at about CA$21.3b, with a further CA$20.8b from Oil Sands Mining and Upgrading and CA$1.0b from Midstream and Refining, alongside smaller contributions from the North Sea and Offshore Africa. The company has a market cap of roughly CA$140.5b.

Investors looking for income may find Canadian Natural Resources interesting because its 3.6% dividend is tied to long life oil sands and conventional assets that are currently supporting record production, rising guidance and ongoing share buybacks. At the same time, the stock trades well below an internal estimate of future cash flow value, which adds a value angle to the income story. The catch is that analysts see earnings and revenue declining over the next few years and recent results include a large one off gain, so headline growth and profitability numbers need a closer look. Long term reliance on oil sands, regulatory pressure and insider selling in recent months round out the key risks that income investors should weigh against the appeal of a growing dividend track record.

Canadian Natural Resources has cash flows, buybacks and a dividend that many investors see only at face value. The fuller picture in the 4 key rewards and 3 important warning signs (1 is major!) could change how you view its staying power.

Manulife Financial (TSX:MFC)

Manulife Financial is a Toronto based insurer and wealth manager that helps individuals and institutions with life insurance, annuities, retirement savings, and investment products across Canada, the U.S., Asia and other markets. The Insurance and Annuity Products segment is a key link to the Dividend Powerhouses theme, as steady premiums and investment income from these contracts support a high, well covered dividend. Global Wealth and Asset Management is also a major earnings driver, with about CA$7.2b of revenue alongside CA$4.8b from Asia, CA$3.2b from Canada, CA$809m from Corporate and Other, and CA$499m from the U.S. The company’s market cap is about CA$98.8b.

Income focused investors may want to watch Manulife Financial because its cash flowing insurance and annuity products help underpin a 3.3% dividend that is supported by earnings and capital returns. The company highlights growth in Asia and retirement markets, AI driven efficiency projects, and recent Q2 2026 results with double digit core earnings and EPS growth as factors that support its ability to fund dividends while also returning capital through buybacks. On the other hand, higher funding risk compared with deposit funded banks, relatively modest ROE and exposure to Asian growth and credit quality could pressure results if conditions change. That mix of income potential, technology driven productivity and non trivial risk makes Manulife a stock where the headline yield only tells part of the story investors are weighing today.

Manulife’s mix of AI driven efficiency projects and a 3.3% dividend suggests more going on beneath the surface of this insurer. See how the story stacks up in the analyst forecasts for Manulife Financial

Seeking Alternatives Before The Crowd

Fresh ideas move first. By the time momentum is obvious, the best entry points can be gone. Scan under the radar stocks while it matters and aim to get in at an earlier stage.

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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.

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