Among the GameStop traders, FAANG fanatics, bubble chasers (EV), or bitcoiners are the investors that rely on a steady stream of dividends from quality companies either as a way of diversification or constitute a larger percentage of their income. Yields on many traditional income assets such as government bonds are near historical lows, leaving individuals with the burden and responsibility of financing their retirement. The TSX index’s average dividend yield currently stands at 2.95%, while the S&P500’s average is about 1.77%.

As the stock markets rallied from the pandemic lows, dividend stocks lagged as several companies either cut or suspended dividend payouts and the focus shifted towards growth companies. For the year of 2020, the TSX posted a total return of 5.6%, while the S&P/TSX Canadian Dividend Aristocrats Index ETF, consisting of large, established Canadian companies that increased cash dividends every year for at least five consecutive years, lagged returning -2.94% in the same year.

The last year’s selloff offered a solid entry point for dividend investors, but if you missed that ride, we don’t think it’s too late. Here are five Canadian stocks we’ve identified that are conservative high dividend-paying companies with solid yields and steady payouts.

Higher yields for stocks can be very attractive for investors, but investors must be mindful if the yields are value traps. Investors do not have to give up on capital appreciation or capital preservation for an income stream. In such cases, investors must do their due diligence to see if the stock is worth the underlying risk.

Happy Investing!

Disclosure: Please note that the author does not hold a financial or other interest in stocks or funds mentioned.