If you want to own high-yield stocks, you need to make sure that the companies you buy can actually keep paying your dividends. Two Canadian banks, Toronto-Dominion Bank (NYSE: TD) and Bank of Montreal (NYSE: BMO), have proved they can do that. Real estate investment trust (REIT) Annaly Capital Management (NYSE: NLY) has proved that, despite a double-digit yield, its dividend can't be relied on.

Canadian banks have been hit pretty hard by rising interest rates. One of the biggest reasons is that Canada's housing market has been extremely strong for years, leaving investor concerned that a wave of loan defaults could be on the horizon.

Rising rates, which could lead to a recession, make that concern even more timely. So Toronto-Dominion, also known as TD Bank, and Bank of Montreal, also known as BMO, have both seen their shares slide in 2022. Their stocks are each off more than 10%.

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Source Fool.com