The Motley Fool

TFSA Investors: 3 Canadian Dividend Stocks to Hold Forever

Image source: Getty Images

Canadian dividend stocks are some of the best in the world. The largest corporations in this country are cash-rich and relatively stable, rendering them ideal targets for investors seeking passive income. 

However, with investors crowding into the top Canadian dividend stocks, most of them are overvalued and offer little yield. With that in mind, here are the top three Canadian dividend stocks that are still undervalued. 


Natural gas and pipeline giant Enbridge Inc. (TSX:ENB)(NYSE:ENB) is both beaten down and relatively attractive. Energy companies have faced severe headwinds this year as consumption dipped. However, Enbridge’s business is more focused on infrastructure, which entails a longer time horizon. 

As the largest pipeline company on the continent, Enbridge has an unparalleled competitive advantage. The company’s free cash flows have been steadily expanding alongside its operations and infrastructure. However, the stock price has been gradually drifting lower, pushing the dividend yield up to 7.27%. 

Warren Buffett’s US$10 billion bet on a natural gas pipeline rival is yet another green flag for investors in this industry. Enbridge’s track record of dividends and Buffett’s recent vote of confidence should put this undervalued Canadian dividend stock on your radar. 

The 10 Best Stocks to Buy This Month

Click here to learn more!


Wireless communications are absolutely essential services. Families across the country already relied heavily on digital connectivity before the pandemic. Now, with everyone confined to their homes, this service has become a critical utility with nearly infinite demand. 

BCE Inc. (TSXBCE)(NYSE:BCE), the largest telecommunications firm in the country, has a solid grip on the market. With more market share than any of its rivals, BCE can easily fund expansion and reinvestment over the next decade and still have plenty of cash leftover to reward shareholders. 

The stock currently offers an attractive 5.9% dividend yield. The payout ratio is 97%, which means the team can afford to sustain this dividend for the foreseeable future. Meanwhile, the stock is trading at a price-to-earnings ratio of just 17. It’s probably one of the most reliable and underpriced Canadian dividend stock on the market today. 

Brookfield Properties

Brookfield Property Partners (TSX:BPY.UN)(NYSE:BPY) is, perhaps, the riskiest stock on this list. The real estate investment trust (REITs) owns and operates commercial properties across the world. These properties have been at the epicenter of the ongoing crisis. 

However, Brookfield is backstopped by one of the largest asset managers in the world. The company’s scale and the portfolio’s diversity make this one of the most stable REITs on the market. 

However, negative sentiments and a risk aversion in the industry have pushed the stock price to a record low. Brookfield’s stock now trades at half the value of its book value per share. Meanwhile, the dividend yield is a jaw-dropping 11.45%. 

In other words, Brookfield’s underlying properties could lose some value and the company could be compelled to cut its dividend, but the stock has already priced those risks in. It’s so underpriced that even the worst-case scenario doesn’t justify its current level. 

Contrarian investors who understand the risks should certainly have this Canadian dividend stock on their radar. 

Looking for more quality stocks? Here's a list.

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.

Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends Brookfield Property Partners LP.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.