2 Oversold Canadian Dividend Stocks Yielding 6% to Buy Now for a TFSA or RRSP

TFSA and RRSP investors can buy top high-yield TSX stocks at cheap prices right now for portfolios focused on passive income and total returns.

| More on:
Silver coins fall into a piggy bank.

Source: Getty Images

Canadian savers can take advantage of the 2022 market correction to buy top TSX dividend stocks at cheap prices for a Tax-Free Savings Account (TFSA) focused on passive income or a self-directed Registered Retirement Savings Plan (RRSP) targeting attractive total returns.


BCE (TSX:BCE)(NYSE:BCE) is Canada’s largest communications company with a current market capitalization of $55.5 billion. The stock trades near $61 at the time of writing compared to a high of $74 earlier this year. The steep pullback looks overdone given the strong earnings results so far this year and BCE’s confirmed guidance on its full-year 2022 financials.

BCE generated second-quarter (Q2) 2022 adjusted net earnings of $791 million compared to $751 million in the same period last year. Free cash flow jumped 7.1% to $1.33 million in the latest quarter.

Ad spending in the media group and new phone sales could slow down next year if the economy goes into a recession, but the mobile and internet subscription revenue should hold up well due to the essential nature of these services.

BCE is investing $5 billion on capital projects in 2022 to drive future revenue growth while protecting its wide competitive moat. The company continues to run fibre optic lines to the buildings of customers and is expanding the 5G mobile network.

Investors who buy BCE stock at the current price can pick up a 6% dividend yield. BCE has raised the distribution by at least 5% annually over the past 14 years, and shareholders should see the trend continue.

A $10,000 investment in BCE stock 25 years ago would be worth more than $180,000 today with the dividends reinvested.


Enbridge (TSX:ENB)(NYSE:ENB) is a giant in the North American energy infrastructure industry with vast oil and natural gas pipeline networks that transport 30% of the oil produced in Canada and the U.S. and 20% of the natural gas used in the United States. The company also has natural gas distribution utilities and renewable energy assets, including wind, solar, and geothermal sites.

Enbridge has a $13 billion capital program on the go that will help drive revenue and cash flow growth in the next few years. In addition, Enbridge is taking advantage of its size to make strategic acquisitions. The company spent US$3 billion last year to buy an oil export terminal in the United States. Enbridge also recently announced a deal to take a 30% ownership position in the $5.1 billion Woodfibre liquified natural gas (LNG) project in British Columbia.

Finally, Enbridge is expanding into hydrogen and carbon capture. These new segments have strong growth potential, and the company is positioned well to capitalize on the opportunities.

ENB stock trades near $55 at the time of writing compared to more than $59 in June. At the current share price, investors can pick up a 6.2% dividend yield. A $10,000 investment in Enbridge 25 years ago would be worth about $225,000 today with the dividends reinvested.

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

BCE and Enbridge are good stocks to buy for passive income and total returns. If you have some cash to put to work in a self-directed TFSA or RRSP portfolio, these stocks look cheap right now 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. Fool contributor Andrew Walker owns shares of BCE and Enbridge.

More on Dividend Stocks

Family relationship with bond and care
Dividend Stocks

TFSA Investors: 3 Cheap Canadian Stocks for Retirees

These three Canadian stocks are super cheap for retirees looking for a great buy that will last the test of…

Read more »

calculate and analyze stock
Dividend Stocks

CPP Disability Benefits: Here’s How Much You Could Get

Not everybody can get CPP disability benefits. If you want some passive income, consider investing in Royal Bank of Canada…

Read more »

growing plant shoots on stacked coins
Dividend Stocks

Boosting Your Monthly Income: TSX Stocks That Deliver

Dividend investing can boost regular or active incomes, especially select TSX stocks that pay monthly dividends.

Read more »

Canadian Dollars
Dividend Stocks

How to Earn $2,005 in Passive Income With No Start-Up Costs

Passive income doesn't need to be difficult work. In fact, by definition, it shouldn't be! Here's an easy way to…

Read more »

Dividend Stocks

TFSA Passive Income: How to Earn $4,800 Per Year Without the CRA Taking a Cut

A good strategy to generate tax-free income while reducing portfolio risk.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

Ready to Invest With $5,000? 3 Stocks for December 2023

These top stocks are some of the most obvious choices out there for a reason. Pick them up if you're…

Read more »

Dividend Stocks

Should You Buy TC Energy for Passive Income?

TC Energy offers an attractive yield and a growing dividend. Is TRP stock now oversold?

Read more »

A plant grows from coins.
Dividend Stocks

2 TSX Dividend Stocks With Lucrative Yields in December 2023

BCE is one of the lucrative TSX dividend stocks generating strong cash flows, thus resulting in a steadily rising dividend.

Read more »