Despite a 2.4% decrease in the S&P/TSX Composite High Dividend Index, specific high-yield stocks are emerging as attractive investment opportunities. One such example is Whitecap Resources (OTC:SPGYF), an energy stock boasting a robust 6.8% dividend yield and carrying a $1.3 billion debt. Whitecap Resources has solidified its position by raising its monthly dividend by an impressive 327% since 2021. The company’s commitment to returning 75% of its cash to shareholders, along with its low valuation at 5.8 times earnings and 9.3 times free cash flow, make it a compelling choice. Additionally, Whitecap Resources maintains a healthy net debt-to-EBITDA ratio of 0.6 times.
In the realm of telecommunications, TELUS faces post-pandemic cost structure challenges and an unfunded dividend, but it offers an enticing 6% yield. The company is actively working to enhance its cash flow by trimming its capital expenditure program, relying on investor trust in the management’s strategies.
BSR REIT, despite experiencing a 16% decline in 2023, is poised for strong FFO (Funds From Operations) per unit growth this year. Trading at a 40% discount to its estimated private market value, BSR REIT owns 31 garden-style apartment complexes in the U.S. Sunbelt region, making it a potential acquisition target.
Pembina Pipeline (NYSE:PBA), a significant player in the midstream and pipeline business in Western Canada, offers a compelling dividend yield exceeding 6% and exhibits robust balance sheet flexibility.
Whitecap Resources (TSX:WCP) stands out for its remarkable monthly dividend growth since 2021 and its commitment to returning 75% of cash to shareholders. TELUS (TSX:T) is implementing cost-control measures and reducing its capital expenditure program, despite challenges posed by rising interest rates and an elevated cost structure. BSR REIT (TSX:HOM.UN) presents an appealing 40% discount to its estimated private market value, suggesting it may soon attract acquisition interest. Lastly, Pembina Pipeline (TSX:PPL (NYSE:PPL)) maintains a strong financial position and continues to offer a growing dividend, yielding over 6%.