Investing in top-quality dividend stocks offering high yields can help you generate a solid, worry-free passive income for years. However, investors should note that high yields may not be sustainable in the long run. Therefore, buying and holding fundamentally sound stocks with a growing earnings base and sustainable payouts can be a smart strategy to generate reliable passive income.

So, if you've got $400, here are three high-yield Canadian stocks to buy and hold for years.

High-yield dividend stock #1

Telus (TSX:T) is one of the reliable bets for investors seeking high-yield Canadian dividend stocks. This Canadian communication services provider is known for its consistent dividend-growth history, reflecting its ability to generate profitable growth and solid free cash flows.

Telus pays a quarterly dividend of $0.402 per share, translating into a high yield of about 7.4% based on the closing price of $21.80 (as of February 14, 2025). Thanks to its growing earnings base, the telecom giant has returned more than $21 billion in dividends to its shareholders since 2004 and raised its dividend 27 times since 2011. This makes it an attractive, high-yielding dividend stock for passive-income investors.

Telus is poised to sustain its dividend growth in the years ahead, benefitting from the 5G transition and rising demand for mobile data. Its investments in upgrading its network and focus on spectrum acquisitions will likely attract new customers, grow its subscriber base, and boost connected device subscriptions, which will drive its future revenues. Further, its emphasis on lowering the customer churn rate will continue to drive strong cash flows, supporting higher payouts.

Moreover, Telus is expanding into digital IT (Information Technology) solutions and Internet of Things (IoT) services, which bodes well for future growth.

High-yield dividend stock #2

Pizza Pizza Royalty Corp. (TSX:PZA) is another top high-yield Canadian stock investors could buy and hold. Known for its monthly dividend payments, high payout ratio, and solid yield, Pizza Pizza is a compelling investment option for passive-income investors.

The company operates and franchises a network of quick-service restaurants and offers a monthly dividend of $0.077 per share, which equates to an impressive yield of 7.1%, near the current market price. Pizza Pizza's dividend payments are supported by its diversified revenue base, including royalty income and food and beverage sales. Further, its strong financials and high payout ratio enable it to return more cash to its shareholders.

The company focuses on driving its same-store sales and boosting its financials by increasing guest traffic and the average customer cheque. Pizza Pizza also focuses on innovation, expanding its restaurant network and using an in-store pickup channel to drive revenues. Further, it uses third-party food delivery platforms to broaden its customer base. Its strategic menu pricing initiatives will further enhance its profits.

The company is also investing to improve food quality and operational efficiency, which will likely boost its earnings and bolster its cash flows, supporting its payouts.

High-yield dividend stock #3

Scotiabank (TSX:BNS) can be another appealing choice for investors looking for consistent dividend income and lucrative yields. Large Canadian bank stocks like Scotiabank have a proven record of consistently delivering worry-free income and a high yield for over a century.

Notably, this financial services giant has consistently paid dividends since 1833. Moreover, it raised its distributions at a compound annual growth rate (CAGR) of 6% since 2013. It currently pays a quarterly dividend of $1.06 per share and offers an attractive yield of 5.8%.

Scotiabank's ability to generate steady earnings in all market conditions and its sustainable payout ratio support its dividend growth. The financial services company's diversified revenue streams, exposure to high-growth markets, growing loans, and solid deposit base boost its earnings. The bank also benefits from its steady credit performance and improved operational efficiency, which drives its earnings and supports its dividend payouts.