3 Dividend Stocks Yielding Above 5% Worth Watching Now

With 10-year government bond yields in markets like Ireland and Germany pushing to multi year highs, income investors face a tough choice between locking in bond coupons or sticking with equities. This is where Dividend Powerhouses can appeal. Well covered yields above 5% that aim for stability and growth can help keep income competitive. This article highlights three stocks from the screener worth a closer look.

These three examples are just a starting sample from the Dividend Powerhouses idea, and the full screen surfaced 8 more companies with equally compelling income stories that are not covered here. If you want to identify which high yield opportunities best fit your goals, head straight to the Dividend Powerhouses (3%+ Yield) screener.

Peyto Exploration & Development is a Calgary based producer focused on natural gas and natural gas liquids in Alberta’s Deep Basin, where its upstream cash flows directly fund regular shareholder distributions. The company generates all of its CA$1.2b in revenue from oil and gas exploration and production, entirely in Canada, which keeps the business model relatively straightforward for dividend investors to assess. With a market cap of about CA$5.1b, Peyto sits firmly in mid cap territory on the TSX, large enough for liquidity but still closely tied to its core assets.

Income focused investors may pay attention to Peyto Exploration & Development because its sizeable gas and NGL production underpins a monthly dividend that management has been willing to raise, most recently in August 2026 alongside strong funds from operations and lower net debt. The company’s low cost Deep Basin operations, LNG linked contracts and diversified gas marketing help support cash flow even when local prices are choppy, which can be important for dividend focused investors. On the other hand, forecast earnings declines, a history of less than perfectly stable payouts and heavy exposure to Alberta focused regulation and infrastructure all deserve close scrutiny. The balance between that cash generating engine and those pressures is where the opportunity may lie.

Peyto’s monthly dividend story, LNG linked contracts and Alberta focused risk profile can look like a puzzle. Before you decide how it fits your income plan, review the 4 key rewards and 3 important warning signs (1 is major!)

TSX:PEY Earnings & Revenue History as at Aug 2026

Freehold Royalties is a Calgary based royalty company that collects a production linked share of crude oil, natural gas, NGLs and potash output without funding drilling or operating costs. This naturally ties into the Dividend Powerhouses theme of well covered, high yielding income. The business reports essentially all of its CA$322 million in revenue from oil and gas exploration and production royalties across Canada and the US, so investors are mainly exposed to commodity volumes and prices rather than operating cost inflation. With a market cap of about CA$2.9 billion, Freehold Royalties is a mid cap stock that many income investors watch for reliable, asset backed cash generation.

Income seekers may find Freehold Royalties interesting because its royalty model can convert a large share of revenue into cash flow, which supports a 6.05% yield and record funds from operations like the CA$78 million reported in Q2 2026. At the same time, payout ratios above 100% in some periods and reliance on external borrowings mean the dividend is not risk free if oil and gas prices soften or interest costs rise. The expanding US royalty portfolio in areas such as the Permian Basin, strong governance and high profit margins give this stock an income story with real upside and a few pressure points that deserve a closer look.

Freehold Royalties converts volume based royalty cheques into cash in a way many producers cannot match, yet the real story sits in the fine print of its balance between payout and debt. Get the fuller picture in the Freehold Royalties financial health report

TSX:FRU Revenue & Expenses Breakdown as at Aug 2026

Manulife Financial is a CA$99.5b insurance and wealth management group that uses profits from its Insurance and Annuity Products and Global Wealth and Asset Management businesses to fund regular quarterly dividends for shareholders. Revenue is spread across Global WAM at about CA$7.2b, Asia at CA$4.8b, Canada at CA$3.2b and Corporate and Other at CA$809 million, so the dividend is tied to a broad mix of fee based and insurance earnings rather than a single product line.

Manulife Financial gives you a mix of a regular, covered dividend and a large scale franchise in retirement savings, insurance and asset management across North America and Asia. Recent updates, from AI driven efficiency gains in Asia to a CA$3.2b long term care reinsurance deal, show management working to make earnings steadier and capital lighter, which can support dividend resilience over time. At the same time, credit risk in the U.S., regulatory shifts such as Hong Kong’s eMPF move and integration of new acquisitions could all pressure profits if they do not go to plan. If you want a dividend payer with global reach and moving parts that really reward close analysis, Manulife deserves a place on your watchlist.

Manulife’s push to make earnings steadier and capital lighter could be the real story that many investors are missing. See how the analyst forecasts for Manulife Financial ties into that long term care deal and the AI push that might not be fully appreciated yet.

TSX:MFC Earnings & Revenue History as at Aug 2026

Seeking Fresh Alternatives For Your Income?

Some dividend ideas move from quiet to crowded quickly. Before the next breakout list gets caught by the crowd and momentum starts flying, scan these fresh picks while it matters and get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Shin JohnYtv Market News

Share-market news writer and analyst with deep experience covering equities, commodities, forex, and cryptocurrencies for readers in the USA, UK, Canada, and Australia. Ytv Market News delivers timely market updates, practical trading insights, and clear explanations of macro and company-level catalysts that move prices. Combines on-the-ground financial reporting with technical analysis, using concise charts and actionable ideas to help investors and traders make smarter decisions.