Best High-Yield Investments for Canadians to Watch in 2025

Last updated: 2025/01/26 at 12:07 PM

Irfan Ameer

7 Min Read

Are you looking to grow your money in 2025? With inflation and the cost of living rising, many Canadians are searching for high-yield investments that can help boost their savings. But which options offer the best returns with minimal risk?

Contents

Why Are Dividend Stocks Still a Good Bet?Can REITs Offer Strong Returns?Should You Consider Preferred Shares?What About Government Bonds?High-Interest Savings Accounts and GICs: Still Worth It?Which High-Yield Investment Is Right for You?

In this guide, we’ll break down some of the top high-yield investments to keep an eye on in 2025. Whether you’re into dividend stocks, real estate, or safer options like bonds and GICs, there’s something here for every type of investor. Let’s dive in.

Why Are Dividend Stocks Still a Good Bet?

If you’re looking for steady income, Canadian dividend stocks should definitely be on your radar. These stocks pay out regular dividends, and some even offer high yields, making them a solid option for 2025.

Take BCE (TSX: BCE), for example. BCE’s stock price has dropped over the past couple of years due to rising interest rates, but this has pushed its dividend yield up to an impressive 8.7%. BCE is Canada’s largest telecom company, and despite the stock’s dip, the company continues to pay out solid dividends.

Why is BCE worth watching in 2025? The company is trimming costs and recently sold its stake in Maple Leaf Sports and Entertainment, which should help reduce debt. This means it could have a stronger financial footing moving forward. If you’re looking for a high-yield investment that pays out consistent income, BCE might be worth adding to your portfolio.

Another option to consider is Bank of Nova Scotia (BNS). The bank’s dividend yield is sitting at about 5.9%, which is pretty attractive. While the stock hasn’t fully recovered from its 2022 highs, BNS remains profitable and is expected to bounce back as interest rates stabilize. If you’re aiming for reliable dividends and long-term growth, BNS could be a good pick for 2025.

Can REITs Offer Strong Returns?

Next up are Real Estate Investment Trusts (REITs), which allow you to invest in real estate without having to buy property. If you’re after passive income, REITs can be a great way to earn high yields.

In Canada, REITs like RioCan (TSX: REI.UN) and Allied Properties (TSX: AP.UN) are popular choices. RioCan, for example, has a dividend yield of over 6%, making it one of the top REITs to consider for 2025. These companies own and manage real estate properties like shopping centers and office buildings, and they pass on rental income to investors through dividends.

With the real estate market stabilizing, REITs are looking like a solid investment option in 2025. They provide a way to earn high yields without the hassle of managing properties yourself. Plus, REITs can also offer some capital appreciation over time as property values increase.

Should You Consider Preferred Shares?

If you’re not sure about stocks or real estate, preferred shares could be the answer. These are a mix between stocks and bonds, offering fixed dividends but with the potential for price gains as well.

In 2025, many Canadians are turning to preferred shares from companies like Enbridge (TSX: ENB) and Fortis (TSX: FTS). Enbridge, for example, has a dividend yield of around 6% on its preferred shares. Fortis, a stable utility company, also offers preferred shares with yields close to 5%.

Preferred shares give you the best of both worlds: a steady stream of income and the potential for growth. If you’re looking for high-yield investments that are a bit safer than common stocks, preferred shares are a good choice.

What About Government Bonds?

Now, let’s talk about government bonds. Bonds don’t always offer the highest returns, but they’re one of the safest investments around. If you want to earn some extra income without taking on a lot of risk, bonds are a smart option.

In 2025, Government of Canada bonds are offering yields between 3% and 4%, depending on the term length. If you’re looking for something even safer, you can check out Canada Savings Bonds (CSBs) or provincial bonds, which also offer decent yields.

Bonds are great for Canadians who want to keep their investments secure while still earning some returns. They’re a solid option if you’re nearing retirement or just want to balance out riskier investments in your portfolio.

High-Interest Savings Accounts and GICs: Still Worth It?

If you’re not into stocks or bonds, you might want to consider high-interest savings accounts (HISAs) or Guaranteed Investment Certificates (GICs). These are low-risk investments that provide predictable returns, making them a popular choice for short-term savings.

In 2025, some of the best high-interest savings accounts in Canada are offering rates as high as 4%. GICs, on the other hand, can offer even better returns, with some five-year GICs paying up to 5%. The catch is that with GICs, your money is locked in for the term, so they’re not as flexible as savings accounts.

That said, both HISAs and GICs are great for parking your money safely while still earning a bit of interest. They’re perfect if you’re saving for a big purchase or just want a low-risk way to grow your cash.

Which High-Yield Investment Is Right for You?

In 2025, Canadians have a lot of options when it comes to high-yield investments. Whether you’re interested in dividend stocks, REITs, preferred shares, or safer options like bonds and GICs, there’s something out there for every investor.

If you’re looking for steady income, BCE and Bank of Nova Scotia are top dividend picks. For those who want a mix of growth and stability, REITs and preferred shares from companies like Enbridge and Fortis are worth considering. And if you want the safety of government-backed investments, bonds and GICs are great choices.

Ultimately, it’s all about finding what works for your financial goals and risk tolerance. Explore these options, and make sure to diversify your investments for the best chance of success in 2025.