Dividend shares can play a significant position in constructing a balanced portfolio, as they provide a reliable earnings stream, decrease volatility, and a few safety in opposition to inflation. These corporations sometimes generate steady money flows that assist common payouts, serving to your passive earnings develop steadily. Traders can additional improve long-term returns by reinvesting dividends to learn from compounding. Owing to their established enterprise fashions and constant earnings, dividend-paying corporations additionally are usually extra resilient during times of market turbulence.
With that in thoughts, listed below are two high-yield Canadian shares that may very well be enticing for long-term buyers.
Enbridge
Enbridge (TSX: ENB) is a diversified power infrastructure firm that transports roughly 30% of North America’s crude oil manufacturing and about 20% of the pure gasoline consumed in america by its intensive pipeline community. As well as, it operates three U.S. pure gasoline utilities and owns renewable and clear power belongings backed by long-term power-purchase agreements.
The vast majority of Enbridge’s adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) is generated from regulated belongings or long-term contracts, with roughly 80% of these contracts listed to inflation. This construction makes its earnings and money flows comparatively resilient to financial cycles and commodity value volatility, enabling the corporate to extend its dividend for 31 consecutive years. It at present pays a quarterly dividend of $0.97 per share, yielding about 5.5%.
Trying forward, Enbridge has recognized roughly $50 billion in progress alternatives throughout its 4 core enterprise segments over the subsequent 5 years. The corporate expects to take a position round $10 billion yearly to advance these tasks, which ought to broaden its asset base and assist earnings progress. In the meantime, the corporate’s administration expects its adjusted EBITDA, adjusted earnings per share (EPS), and discounted money flows per share to develop at a mid-single-digit annual charge by the rest of the last decade.
Supported by sturdy money move visibility, the administration expects to return $40–$45 billion to shareholders over the subsequent 5 years. Given its steady enterprise mannequin, enticing yield, and clear progress runway, Enbridge seems well-suited for long-term, income-oriented buyers.
Financial institution of Nova Scotia
One other dividend inventory that seems enticing for long-term buyers is Financial institution of Nova Scotia (TSX:BNS). The financial institution provides a full suite of monetary companies throughout greater than 55 international locations. Supported by a diversified income base that generates steady and recurring money flows, it has paid dividends with out interruption since 1833. Its quarterly dividend of $1.10 per share yields roughly 4.2%.
In its just lately reported fourth-quarter fiscal 2025 outcomes, Scotiabank delivered strong momentum, with income and adjusted EPS rising 15% and 22.9%, respectively, yr over yr. The financial institution has additionally strengthened its stability sheet and improved its loan-to-deposit ratio, positioning it to assist sustainable long-term progress.
Importantly, Scotiabank is executing a strategic restructuring, reallocating capital and operational focus towards its North American operations whereas scaling again publicity to much less worthwhile, higher-risk Latin American markets. This transition may streamline operations, improve profitability, and enhance the sturdiness of future dividend progress. Backed by bettering monetary efficiency, a protracted historical past of constant payouts, and ongoing strategic initiatives, BNS seems well-positioned to ship regular earnings and long-term worth for buyers.