A $10,000 investment in this high yield stock could generate more than $193 in dividend income every quarter. This 7.7% Dividend Stock Is My Top Pick for Immediate Income Investing in high-yield dividend stocks has long been a strategy for generating immediate income. Thankfully, several Canadian stocks are offering high yields near their current market price. However, one should focus on the ones with sustainable payouts. Against this background, here is my top pick for immediate income. This TSX stock has a growing earnings base, a solid dividend payment and growth record, and a well-protected yield of about 7.6%. Passive-income investors can rely on this fundamentally strong stock to earn worry-free dividends for years. The 7.7% dividend yield stock Among reliable dividend stocks listed on the TSX, Telus (TSX:T) is my top pick for generating immediate income, and there are solid reasons behind the choice. The Canadian communication giant’s ability to grow profitably, commitment to rewarding its shareholders, solid dividend-growth history, sustainable payout ratio, and high yield make it my top stock for generating a steady income. Telus’s commitment to returning capital to shareholders is evident in its long-standing dividend-growth program. The company targets semi-annual dividend hikes, aiming for annual increases of 7–10%. Moreover, Telus maintains a sustainable dividend payout ratio of 60–75% of its free cash flow, which provides a solid foundation for continued growth. Since 2004, Telus has distributed over $21 billion in dividends. Moreover, it has raised its dividend 27 times since 2011 under its multi-year growth plan. The company’s quarterly payout is $0.4023 per share, reflecting a high yield of over 7.7%. Telus to keep growing dividend Telus is well-positioned to deliver profitable growth, driven by a high-quality asset portfolio, expanding customer base, and its focus on cost efficiency. Its continued focus on expanding its margin-accretive customer base, leading broadband networks, and low churn rates will likely support its bottom line and payouts. Telus added more than 1.2 million new subscribers in 2024, marking the third straight year of surpassing one million customer additions. This momentum is driven by its compelling bundled services and solid connectivity. Moreover, its post-paid mobile churn stayed below 1% for the eleventh straight year. The telecom giant’s investments in its fibre and wireless networks continue to support its growth. Upgrades to its network infrastructure enhance customer experience and translate into robust free cash flow. This allows Telus to reinvest in future growth while consistently returning capital to shareholders. In a move to strengthen its balance sheet further, Telus is working with advisors to evaluate the sale of a minority stake in its wireless tower portfolio. Monetizing this infrastructure will boost network efficiency and provide a significant cash infusion. Telus plans to allocate 100% of the proceeds toward debt reduction. This focus on deleveraging will enhance the company’s financial flexibility and support its long-term growth strategy. By reducing debt, Telus will be able to navigate economic challenges more effectively while maintaining its commitment to delivering sustainable shareholder returns. Telus is well-positioned to grow profitably, lower debt, and return higher cash to its shareholders through continued dividend growth. Bottom line Telus combines a high yield with a dependable history of dividend growth. Moreover, its ability to grow profitably and its commitment to reward its shareholders make it a compelling income stock. To put things into perspective, a $10,000 investment in Telus stock today could generate more than $193 in dividend income every quarter.