Canadian pensioners are looking for high-yield dividend shares so as to add to their self-directed Tax-Free Financial savings Account (TFSA) portfolio centered on producing dependable passive earnings.
Canadian Pure Assets
Canadian Pure Assets (TSX:CNQ) trades close to $47 per share on the time of writing. The inventory is up in latest days however nonetheless sits method beneath the $55 it fetched in 2024.
CNRL is a significant participant within the Canadian power sector with oil sands, typical heavy oil, typical gentle oil, offshore oil, pure fuel liquids, and pure fuel manufacturing.
West Texas Intermediate (WTI) oil trades for lower than US$60 per barrel on the time of writing in comparison with US$80 a 12 months in the past. Analysts broadly assume the market will probably be oversupplied by means of a lot of 2026. Report manufacturing in Canada and america, together with elevated provide from OPEC, is predicted to outpace sluggish demand progress. China’s financial system stays below strain attributable to challenges within the property market. An financial slowdown in america is feasible if tariffs begin to be handed on to shoppers as companies are compelled to interchange inventories at increased costs.
A contrarian play
These near-term headwinds make CNRL a contrarian choose, however earnings buyers can make the most of the state of affairs to select up a strong 5% dividend yield on the inventory.
CNRL generated increased adjusted earnings by means of the primary three quarters of 2025 in comparison with the earlier 12 months. Elevated manufacturing helped offset decrease margins. CNRL is greatest identified for its oil manufacturing, however additionally it is a major pure fuel producer. The diversified product combine helps stability out the income stream.
The development of pure fuel export terminals in Canada is offering CNRL and its friends with entry to international consumers. CNRL can be benefiting from the enlargement of the Trans Mountain oil pipeline that was accomplished in 2024. Canada’s deal with lowering reliance on america and discovering new consumers for its oil and pure fuel might result in new pipelines being constructed within the coming years.
CNRL raised its dividend in every of the previous 25 years. The corporate has the stability sheet power to assist the payout whereas driving manufacturing progress by means of acquisitions and drilling packages.
Telus
Telus (TSX:T) is one other unloved Canadian dividend inventory that appears oversold. Telus trades for lower than $19 per share in comparison with $34 in April of 2022. The almost four-year slide within the share value has been painful for long-term holders of the inventory.
Telus is engaged on lowering its debt. The corporate bought a 49.9% stake in its cell tower belongings final 12 months and is planning to monetize different belongings, together with its Telus Well being enterprise.
Because the debt degree declines, buyers ought to develop into extra snug with the security of the dividend. Telus not too long ago introduced a pause on dividend progress because of the decline within the share value. Senior managers reportedly loaded up on shares in December, so they seem like of the opinion the pullback went too far.
Dangers stay for the enterprise. A pointy decline in immigration in Canada cuts into an necessary supply of buyer progress for Telus and its friends. That state of affairs gained’t enhance within the close to time period. Rates of interest have declined from the 2023 peak. That is serving to scale back curiosity bills. A bounce in inflation, nonetheless, might power the Financial institution of Canada to lift charges once more, which might put strain on Telus. There isn’t a assure the dividend gained’t get reduce, particularly if income slips and borrowing prices enhance.
That being stated, the present 9% dividend yield is engaging for contrarian earnings buyers. A lot of the identified threat is probably going already mirrored within the share value. If administration succeeds in shoring up the stability sheet, the inventory might transfer materially increased within the subsequent few years.
The underside line
CNRL and Telus are strong corporations buying and selling at discounted costs. If in case you have a contrarian investing type and are looking for high-yields, these shares should be in your radar.
