RRSP and TFSA Investors: 2 Cheap TSX Dividend Stocks to Buy Now

RRSP and TFSA investors can now find top TSX dividend stocks trading at discounted prices.

| More on:
work from home

Image source: Getty Images

Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) investors have a chance to buy top Canadian dividend stocks at discounted prices right now for portfolios focused on RRSP total returns or TFSA passive income.

Enbridge

Enbridge (TSX:ENB)(NYSE:ENB) is a giant in the North American energy infrastructure sector with a current market capitalization near $112 billion. The company moves 30% of the oil produced in Canada and the United States and 20% of the natural gas used by Americans.

The days of relying on pipeline mega projects to drive growth are probably over, but Enbridge is still finding opportunities for revenue and cash flow expansion. Exporting oil and liquified natural gas (LNG) is going to be a meaningful part of Enbridge’s growth in the next few years. The company spent US$3 billion on an oil export terminal in 2021 and recently announced a deal to take a 30% ownership position in the $5.1 billion Woodfibre LNG site being built in British Columbia. Enbridge is also expanding natural gas pipeline networks to deliver the fuel to LNG facilities.

Hydrogen production and carbon capture are other areas of growth for the business. Companies and governments are keen to reduce emissions in the coming years and mixing hydrogen with natural gas is one option for helping meet net-zero goals. Carbon sequestration and storage is another strategy. Enbridge has the infrastructure and technical expertise to be a leader in both these areas.

The board raised the dividend in each of the past 27 years. Ongoing annual increases will likely be in the 3-5% range, supported by the current $13 billion capital program. Investors who buy the stock now can get a 6.2% dividend yield.

Enbridge is a good stock to buy for TFSA passive income and is also attractive for RRSP investors who use their dividends to buy new shares to build their retirement portfolios. The stock trades near $55.50 at the time of writing compared to $59.50 in June.

Telus

Telus (TSX:T)(NYSE:TU) typically raises its dividend twice per year and is targeting annual dividend growth of 7-10% over the medium term. The company offers investors a nice mix of reliable telecom revenue with an opportunity for meaningful growth through disruptor subsidiaries.

Telus recently closed its purchase of LifeWorks. The $2.3 billion deal will give Telus Health an expanded global footprint in the emerging digital health sector. The business offers digital health solutions for corporations, health professionals, hospitals, and insurance companies.

Another subsidiary, Telus Agriculture, is helping farmers make their operations more efficient. The group is expanding into the full consumer goods sphere with new digital solutions aimed at improving the way products are produced, distributed, and consumed.

Telus generated solid second-quarter 2022 results with adjusted earnings per share increasing 23% compared to the same period last year. Investors who buy now can get a solid 4.6% dividend yield.

Telus is a good stock to buy if you are searching for a defensive pick with a revenue stream that normally holds up well during a recession. The share price looks cheap today at less than $30. Telus traded above $34 earlier this year.

The bottom line on top stocks to buy for RRSP and TFSA portfolios

Enbridge and Telus pay attractive dividends that should continue to grow. If you have some cash to put to work in a TFSA or RRSP, these stocks look cheap and deserve to be on your radar.

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.

The Motley Fool recommends Enbridge and TELUS CORPORATION. Fool contributor Andrew Walker owns shares of Enbridge and Telus.

More on Dividend Stocks

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

TFSA 101: How Pensioners Can Earn $4,987.50 Per Year in Tax-Free Passive Income

Retirees can use this TFSA strategy to boost portfolio yield while reducing risk.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Retirees: Here’s How to Boost Your CPP in 2024

By making RRSP contributions, you can lower your after-tax CPP amount. You can then use the RRSP space to invest…

Read more »

Dividend Stocks

Buy 3,000 Shares of This Super Dividend Stock For $3,300/Year in Passive Income

Are you looking for a super dividend stock to buy now and generate a whopping passive-income stream? Here's an option…

Read more »

Question marks in a pile
Dividend Stocks

Where Will Brookfield Infrastructure Partners Stock Be in 5 Years?

BIP (TSX:BIP) stock fell dramatically after year-end earnings, but there could be momentum in the future with more acquisitions on…

Read more »

Utility, wind power
Dividend Stocks

So You Own Algonquin Stock: Is It Still a Good Investment?

Should you buy Algonquin for its big dividend? Looking forward, the utility is making a lot of changes.

Read more »

stock data
Dividend Stocks

Passive Income: How Much Should You Invest to Earn $1000/Year

Dependable income stocks like Enbridge can help you earn worry-free passive income regardless of market and commodity cycles.

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

2 Stocks Ready for Dividend Hikes in 2024

Building a passive income is one way to keep up with and even beat inflation. These two stocks can help…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

3 Ways Canadian Investors Can Save Thousands in 2024

If you've done the budgeting and are still coming out with less money than you'd like, consider these three ways…

Read more »