Looking for a 5.4% Average Yield? These 3 TSX Stocks Are Worth a Look

Amid ongoing geopolitical tensions in the Middle East and elevated oil and natural gas prices, global equity markets have become increasingly volatile. In this uncertain environment, investors may consider accumulating high-quality dividend stocks to strengthen their portfolios and generate steady, reliable passive income. Backed by well-established businesses, strong cash flows, and consistent payouts, the following three TSX stocks stand out as attractive options in the current market.

TC Energy

TC Energy (TSX:TRP) is a leading midstream energy company that transports nearly 30% of the natural gas consumed in North America. It also operates a diversified portfolio of power-generating assets with a total capacity of 4.65 gigawatts. Notably, about 98% of its earnings come from rate-regulated assets and long-term take-or-pay contracts, making its financial performance less sensitive to economic cycles and market volatility. This stability supports consistent cash flows and has enabled the company to increase its dividend for 26 consecutive years. It currently offers an attractive forward yield of 4.1%.

Looking ahead, rising natural gas demand and production across North America continue to drive growth opportunities for TC Energy. The company plans to invest $6–$7 billion annually in expansion projects to capitalize on this trend. Supported by these initiatives, management expects adjusted EBITDA to grow at an annualized rate of 3–5% through 2028, reinforcing the sustainability of its future dividend payouts.

Fortis

Fortis (TSX:FTS) is another compelling choice for income-focused investors, supported by its regulated asset base, an impressive 52-year track record of dividend growth, and solid long-term growth prospects. The company serves approximately 3.5 million customers across the United States, Canada, and the Caribbean, providing essential electricity and natural gas services. Nearly all of its assets are regulated, with about 95% tied to low-risk transmission and distribution operations. This stability helps shield the utility’s financial performance from economic volatility, enabling consistent dividend increases. It currently offers a forward yield of 3.3%.

Looking ahead, Fortis plans to invest $28.8 billion over the next five years to expand its asset base. These investments could drive 7% annualized growth in its rate base, reaching $57.9 billion by 2030. In addition, its focus on preventive maintenance, operational efficiency, and energy transition initiatives should support steady earnings growth. Backed by these factors, management expects to increase its dividend by 4–6% annually through the end of the decade, reinforcing its appeal as a reliable income stock.

Telus

My final pick is Telus (TSX:T), a telecom giant that has delivered consistent dividend growth since 2011. While the company paused its dividend growth program in December 2025 to strengthen its balance sheet, it continues to offer an attractive quarterly dividend of $0.42 per share, yielding 9.3%.

Telus stands to benefit from the ongoing digitization of businesses and the rising adoption of artificial intelligence, both of which are driving increased demand for reliable telecommunications infrastructure. The company also plans to invest $2.3 billion this year to expand and enhance its network and digital capabilities. Supported by these initiatives, Telus expects its revenue and adjusted EBITDA to grow by 2–4%, while free cash flow could rise 10% to $2.45 billion.

Despite the temporary pause in dividend growth, Telus’s expanding addressable market, improving cash flow profile, and continued investment in growth position it well to maintain its strong income appeal, making it an attractive option for income-focused investors.

Investors’ takeaway

On average, these three TSX stocks offer a dividend yield of around 5.5%. As a result, a $10,000 investment equally allocated among them could generate more than $137 in quarterly income, translating to an annual passive income of over $548.

COMPANYRECENT PRICENUMBER OF SHARESINVESTMENTDIVIDENDTOTAL PAYOUTFREQUENCYTRP$86.4338$3,284.30$0.8775$33.30QuarterlyFTS$78.1842$3,283.60$0.64$26.90QuarterlyT$18.04184$3,319.40$0.4183$77QuarterlyTotal$137.20Quarterly

The post Looking for a 5.4% Average Yield? These 3 TSX Stocks Are Worth a Look appeared first on The Motley Fool Canada.

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More reading

• A Dirt-Cheap Canadian Dividend Growth Stock Built for the Long Haul
• 5 Canadian Stocks Built for Buy-and-Hold Investors
• How to Make Money in a TFSA With Dividend Stocks
• This Canadian Stock Is 23% Cheaper Today, But It’s a “Forever” Hold
• BCE or Telus: Which TSX Dividend Stock Is a Better Buy Now?

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and TELUS. The Motley Fool has a disclosure policy.