3 Dividend Stocks Yielding Above 5% As Bond Yields Rise

Major developed market bond yields are pressing higher as investors factor in stubborn inflation risk and the chance of policy rates staying elevated for longer. That puts reliable income back at the centre of many portfolios. Well covered dividends that already yield more than 5% can look especially appealing when bond markets are jumpy. This article highlights three Dividend Powerhouse stocks from that screen.

The three stocks below are a sample of this Dividend Powerhouses idea. The full screen surfaced 10 more companies with equally compelling income stories that are not covered here. To identify candidates that fit your own income goals, head straight into the Dividend Powerhouses (3%+ Yield) screener.

Lundin Gold (TSX:LUG)

Lundin Gold is a Canadian miner that develops and operates gold and silver concessions in Ecuador, anchored by its 100% owned Fruta del Norte project in the Cordillera del Cóndor. The company generates all reported revenue of about US$2.0b from Fruta del Norte. Lundin Gold has a market cap of roughly CA$20.9b, which places it firmly in large cap territory.

Lundin Gold combines a single high grade asset, very strong profitability and an active exploration pipeline around Fruta del Norte that has recently expanded into copper gold porphyry discoveries. High margins, double digit return on equity and regular dividends, including both fixed and variable payouts, give the stock clear income appeal, while analyst targets and internal fair value work indicate potential upside from current levels. The flip side is concentrated risk in one country and mine, and a business that is tied directly to gold prices and external borrowing. Investors who can balance those trade offs may find the full Lundin Gold story worth a closer look.

Lundin Gold’s high margins and combination of fixed and variable dividends suggest that the headline yield may not tell the whole story. Get the fuller income and valuation picture in the analysis report for Lundin Gold

Build your own dividend powerhouse shortlist

Lundin Gold and the two other stocks in this article are just a sample of what a focused screen can surface. Use our customisable Screener to mix filters like valuation, dividends, quality and risk into your own shortlist, or take a quicker path by starting with any of our Investing Ideas.

Freehold Royalties (TSX:FRU)

Freehold Royalties is a Calgary based royalty company that collects a slice of production from crude oil, natural gas, natural gas liquids and potash properties that others operate. All of its CA$322 million in revenue is tied to oil and gas exploration and production, spread across Canada and the United States. The stock has a market cap of about CA$2.8b, which places Freehold Royalties in mid cap territory for North American energy income investors.

Freehold Royalties gives exposure to oil and gas production without the drilling risk, since operators fund the wells and Freehold collects top line royalties that can translate into high cash conversion. That model has supported funds from operations of more than CA$230 million a year in recent periods and a yield above 6%. However, payout ratios above 1 and reliance on higher commodity prices raise questions about how secure that income is. At the same time, US focused growth, rising Permian activity and an active acquisition and buyback program mean there is more to the Freehold Royalties income story than a headline dividend line suggests.

Freehold Royalties converts its top line royalty cash flow into a substantial dividend stream that many investors only briefly consider. See how the 2 key rewards and 1 important major warning sign might reveal what really supports that payout and what factors could influence it next.

Manulife Financial (TSX:MFC)

Manulife Financial is a global insurer and asset manager that provides life and health insurance, annuities, retirement products and wealth management services across Canada, the United States, Asia and other markets. It also runs related businesses such as asset management, reinsurance, and agricultural and timberland investing, as well as integrated banking and fund management services. Manulife Financial has a market cap of about CA$103.6b, which puts it among the largest financial stocks in Canada.

Income focused investors may find Manulife Financial interesting because it pairs a 3.1% dividend with sizable buybacks and a business mix that leans on fee based wealth management and retirement products across North America and Asia. The company is also investing heavily in AI and digital tools with Microsoft and others, which could reshape costs and client engagement over time. The trade off is material exposure to regulatory shifts in Asian pensions, credit risk in below investment grade loans and a still evolving leadership bench. The full picture is a complex mix of steady income, capital returns and meaningful execution risk that deserves a closer look before deciding where it fits in a dividend portfolio.

Manulife Financial’s mix of fee based wealth and retirement income is evolving faster than many investors realise, yet the real swing factor may sit hidden in its analyst forecasts for Manulife Financial

Seeking Fresh Alternatives Before Momentum Flies

Markets move quickly and the best income and growth ideas often shift from quiet accumulation to sharp breakout before most investors react. Spot fresh candidates while it matters and get in early.

• Capture potential upside from resilient balance sheets before they are fully priced by institutions by using a curated list of solid balance sheet and fundamentals (11 results) that screens for financial strength and staying power.
• Consider early momentum in companies involved in building the digital backbone of tomorrow by scanning a focused set of 56 AI infrastructure stocks that could benefit as data demand keeps climbing.
• Explore potential opportunities related to any renewed interest in alternative assets with a targeted pool of 20 cryptocurrency and blockchain stocks that links equity markets to the broader digital asset ecosystem.

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.

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