Builders Capital Mortgage and BCE Inc. are two high-yield Canadian dividend stocks that investors could consider. We used the TipRanks Stock Screener tool for Canadian stocks to select these two stocks with over 5% dividend yield. Investing in dividend stocks is one of the best ways to diversify your portfolio while earning regular income. Dividend-paying stocks reward shareholders by offering both dividends and share price appreciation potential over time.
Builders Capital Mortgage Corp. (TSE:BCF)
Alberta-based Builders Capital Mortgage Corp. is a mortgage lender that provides short-term course-of-construction financing for residential mortgages. The company operates primarily in the Western Canadian urban markets and follows a disciplined total loan-to-value (LTV) lending of not more than 75%.
Importantly, BCF offers an attractive dividend yield of 9.5%. The company declared a regular quarterly dividend of C$0.20 per share in Q1, up 1.4% from the prior quarter’s dividend.
In Q1 FY24, BCF posted an 8.7% year-over-year jump in total revenues while earnings per share (EPS) remained consistent at C$0.26.
Is BCF Stock a Buy?
With one Buy rating received in the past three months, BCF stock has a Moderate Buy consensus rating on TipRanks. The average Builders Capital Mortgage price target of C$10.50 implies 24.9% upside potential from current levels.
BCE Inc. (TSE:BCE)
BCE, or Bell Canada Enterprises, is Canada’s largest telecommunications company. BCE offers fibre and wireless networks, including internet, TV, mobile data, and voice services, for both residential and business customers. Moreover, for medium to large-scale businesses, BCE provides security, cloud, IoT (Internet of Things), collaboration, and contact center solutions, backed by AI (artificial intelligence) and machine learning. Similarly, BCE’s Bell Media unit is one of Canada’s largest content and media companies operating across multiple platforms.
Interestingly, BCE pays a regular quarterly dividend of C$1.00 per share, reflecting an above-sector average yield of 8.8%.
In Q1 FY24, adjusted EPS fell 15.3% year-over-year while operating revenues declined marginally. For FY24, BCE expects revenue to grow by 0% to 4% and adjusted EPS to decline in the range of 2% to 7%.
Is BCE Inc. a Good Stock to Buy?
On TipRanks, BCE has a Moderate Buy consensus rating based on three Buys and seven Hold ratings. The average BCE price target of C$49.51 implies 8.3% upside potential from current levels.
Ending Views
Investors seeking regular and attractive dividend income can consider dividend-paying stocks such as BCF and BCE in their portfolios. These two stocks offer above-industry average dividend yields as well as the potential for share price appreciation in the long run.
