High-yield dividend stocks can boost a portfolio’s income potential. However, investors should look beyond yield when selecting income stocks. An unusually high yield may reflect a falling share price, suggesting underlying business problems and raising concerns about the company’s ability to sustain future dividend payments.
Dividend sustainability is therefore the key consideration for generating worry-free income in the long term. Instead of chasing the highest yields, investors should focus on Canadian stocks with resilient business models, a reliable dividend history, stable earnings, and strong cash flow. These fundamentals can help support consistent dividend payments through changing market conditions.
With these factors in mind, here are two high-yield stocks that I would consider holding for the next decade, along with suggested dollar amounts for each.
High-yield dividend stock #1: Enbridge
Enbridge (TSX: ENB) is one of the most reliable high-yield dividend stocks to hold for the next decade. The company has a dividend-paying history spanning more than seven decades and has raised its annual dividend consistently since 1995. This track record highlights the resilience of its business model, its ability to generate stable cash flows, and its focus on enhancing shareholder value.
Enbridge’s diversified operations add resilience and drive its earnings and distributable cash flow (DCF) across all market conditions, supporting its payouts. Its operations span liquids pipelines, natural gas infrastructure, gas distribution utilities, and renewable energy.
A significant portion of its revenue is supported by regulated operations and long-term take-or-pay agreements, while its pipeline network benefits from high utilization levels. These factors limit the business’s sensitivity to commodity-price fluctuations and contribute to more predictable DCF.
Enbridge also maintains a sustainable payout ratio of 60% to 70% of DCF. This leaves room to increase the dividend while funding growth projects.
With solid momentum across its core businesses and a secured capital backlog of about $41 billion, Enbridge has a strong foundation to expand its DCF and earnings per share at a mid-single-digit rate over the medium term. As cash generation and earnings continue to grow, ENB is well positioned to continue growing its dividend in the years ahead. It offers a high yield of 5.9%, based on its October 8 closing price of $66.14.
High-yield dividend stock #2: SmartCentres REIT
SmartCentres REIT (TSX: SRU.UN) is a reliable high-yield stock to generate passive income over the next decade. The REIT’s diversified portfolio of retail and mixed-use properties supports its income and cash flow, covering its payouts. SmartCentres pays monthly distributions of $0.15 per unit, offering a yield of approximately 7%.
Its properties are strategically located and witness solid traffic, driving tenant demand, occupancy, and higher rents on renewal. In the second quarter, occupancy remained above 98%, while rent collection reached 99%, highlighting strong operating performance. The REIT also renewed about 86% of leases expiring in 2026, securing rental increases of 12% excluding anchor tenants and 6.6% including them.
Continued customer traffic, effective tenant-mix management, and the addition of reputable retailers could further strengthen rental income and operating income in the years ahead. Meanwhile, mixed-use developments and its substantial land holdings provide additional opportunities for long-term expansion.
Overall, strong occupancy, growing rent, and development opportunities position SmartCentres REIT to sustain its monthly distributions.
The bottom line
Enbridge and SmartCentres REIT are attractive long-term investment options for investors seeking a steady stream of dividend income over the next decade. As the table below shows, a portfolio of 300 shares of Enbridge and 300 shares of SmartCentres REIT would require an investment of $19,842 and $7,833, respectively. Together, these holdings could provide approximately $1,704 in annual dividend income.
