Three Canadian Dividend Payers Worth a Look as Rates Climb Again
With the Bank of England raising rates for the first time in over three years, income investors are turning to well-covered Canadian dividends above 3%.
The Bank of England has lifted interest rates for the first time in more than three years, and higher borrowing costs are already squeezing mortgages and personal loans. In that kind of environment, investors often turn toward dependable cash payouts — and a new screen from Simply Wall St, cited by Yahoo Finance, highlights three Canadian dividend payers yielding above 3%.
The screen focuses on dividends that are well covered and growing, rather than simply the highest headline yields. Here are the three names it surfaced.
A royalty owner that skips the drilling bill
PrairieSky Royalty, a Calgary-based royalty owner, collects oil and gas payments from operators across roughly CA$550 million of exploration and production revenue, according to the article. With a market value of around CA$8 billion, the company turns drilling activity on its lands into recurring cash payouts without bearing the capital cost of running wells itself.
The piece points to longer-reach multilateral drilling and expanded waterflood and polymer flood programs on PrairieSky's lands as factors that could lift recovery rates and sustain higher royalty volumes per well over time, supporting steady revenue growth.
A low-cost gas producer
Peyto Exploration & Development, also based in Calgary, produces natural gas and liquids in Alberta's Deep Basin, generating about CA$1.2 billion from oil and gas production, according to the article. That cash flow funds a dividend above 3% on a market value of roughly CA$4.9 billion.
Peyto's edge, the article argues, is cost: controllable cash costs of $1.04 per Mcfe in the second quarter of 2026 and a 2025 proved-developed-producing finding and development cost of $0.94 per Mcfe let the company keep more cash flow per unit of production — a buffer that matters when sector sentiment is weak.
A bank with a long payout record
Bank of Nova Scotia rounds out the trio. The CA$156.4 billion universal bank offers everyday banking, lending, insurance and wealth services, with Canadian Banking generating about CA$11.9 billion in revenue and International Banking a further CA$9.6 billion, according to the article — revenue streams that help fund its regular 3%-plus dividend payouts.
The article points to the bank's expansion in Pacific Alliance markets such as Mexico, Peru, Chile and Colombia as a live growth driver, with international banking revenue and loan growth in the region and return on equity above 16%.
Simply Wall St notes that its analysis is general in nature, based on historical data and analyst forecasts, and is not financial advice.
Written by the BidAsk Newsroom. Based on reporting from the sources below.
