Canadian income investors are watching the downturn in the stock market and wondering which companies might be attractive picks today for their TFSA portfolios.

Let’s take a look at three companies that could be oversold right now.

Inter Pipeline Ltd. (TSX:IPL)

IPL owns natural gas liquids extraction assets, oil sands pipelines, conventional oil pipelines, and a liquids storage business located in Europe.

The company generates adequate free cash flow to support the dividend and has raised the payout consistently through the downturn in the oil sector.

Management took advantage of the difficult times to add strategic assets at attractive prices, so IPL could see strong returns on the investments as the market recovers.

The company has also announced plans to go ahead with its $3.5 billion Heartland Petrochemical Complex, which should begin generating revenue by the end of 2021.

IPL is down from $26 per share a month ago to $22. Investors who pick up the stock at this price are looking at an annualized dividend yield of 7.5%.

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM)

CIBC is down from $124 in early January to $115 per share. That’s still up $11 from the September low, so there could be additional weakness if the market pullback continues.

That said, the stock should be on your radar. CIBC trades at a discount to its peers, and while the company carries more risk than the bigger banks due to its heavy exposure to the Canadian housing market, fears might be a bit overblown on that front.

The company’s mortgage portfolio is capable of riding out a downturn in house prices, and most analysts predict a gradual pullback, rather than a sharp plunge.

At the time of writing, investors can pick up a 4.5% dividend yield.

TransCanada Corporation (TSX:TRP)(NYSE:TRP)

TransCanada is down from $61 per share a month ago to $53.50. As a result, investors can now pick up a 4.7% yield.

The company is working through a near-term project portfolio worth $24 billion. As the new assets are completed and go into service, TransCanada expects cash flow to improve enough to support annual dividend increases of at least 8% through 2021.

Most of the company’s revenue comes from regulated assets, and investors could see a boost to guidance supported by Keystone XL and other longer-term projects.

The bottom line

Stock market corrections have historically proven to be good opportunities to add top-quality stocks to buy-and-hold portfolios.

If you have some cash on the sidelines, there are some interesting opportunities in the Canadian market right now.