3 Great Canadian Dividend Stocks Now on Sale

Top TSX dividend stocks are now on sale.

| More on:
edit Sale sign, value, discount

Image source: Getty Images

A number of top Canadian dividend stocks still haven’t recovered from the market correction that began about a year ago. This is frustrating for existing shareholders, but it also gives investors a chance to add to current positions on a dip or buy new stocks at cheap prices to portfolios targeting passive income and total returns.


Enbridge (TSX:ENB) is a key player in the Canadian and U.S. energy industry. The company is known primarily for its oil pipeline infrastructure. Enbridge moves about 30% of the oil produced in the two countries and owns an oil export terminal in Texas.

Enbridge also has natural gas transmission infrastructure with vast storage and pipeline capacity. The company’s natural gas utilities distribute fuel to millions of homes and businesses. Another division is the renewable energy group with assets in North America and Europe.

Enbridge trades for close to $50.50 at the time of writing. That’s slightly above the 12-month low near $48 but way off the $59.50 the stock hit last June.

Investors can now get a 7% dividend yield and wait for ongoing dividend increases to boost the yield on the initial purchase. Enbridge raised the dividend in each of the past 28 years.

Management is targeting annual adjusted earnings and free cash flow expansion of at least 4% and 3%, respectively, over the medium term, so the payout should continue to grow.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) has a new chief executive officer this year who is undertaking a strategic review of the bank’s operations to see where changes can be made to improve investors returns. The bank has underperformed most of its peers in recent years, so a shakeup is likely on the way.

In the meantime, investors might want to start adding BNS stock to their portfolios. The shares trade near $66 at the time of writing compared to $85 in early June last year. The dip appears overdone, even with the economic headwinds facing the bank industry.

Bank of Nova Scotia remains very profitable and has adequate capital to ride out some turbulence, as interest rate hikes are expected to drive up loan defaults in the next 12-18 months.

The stock is a bit of a contrarian pick, but the dividend should be rock solid and you get a 6.4% yield right now while you wait for better days.


Telus (TSX:T) trades near $25.75 at the time of writing compared to the 2022 high above $34 per share. The pullback looks overdone, given the strong results through the past 12 months and the expectation for revenue and free cash flow growth this year.

Telus gets most of its revenue from mobile and internet subscriptions. These tend to be essential services for homes and businesses, so there should be limited downside risk during a recession. Telus also has interesting subsidiaries, including Telus Health and Telus Agriculture and Consumer Goods that have the potential to drive attractive long-term growth.

Telus typically increases the dividend by 7-10% per year. The current distribution provides a 5.6% yield.

The bottom line on top Canadian dividend stocks

Enbridge, Bank of Nova Scotia, and Telus all pay attractive dividends that should continue to grow. If you have some cash to put to work, 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 Bank Of Nova Scotia, Enbridge, and TELUS. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker owns shares of Enbridge and Telus.

More on Dividend Stocks

Canadian Dollars
Dividend Stocks

The Best TSX Stocks to Invest $5,000 in October 2023

The bearish market momentum of October 2023 has created a ripe time to buy three TSX stocks that can outperform…

Read more »

Increasing yield
Dividend Stocks

2 TSX Dividend Stocks With Lucrative Yields in October 2023

These stocks pay great dividends that should continue to grow.

Read more »

Gold medal
Dividend Stocks

Canadian Blue-Chip Stocks: The Best of the Best for October 2023

These TSX giants deserve to be on your radar.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Earn $50 a Week With These 3 Stocks

The right dividend stocks offer more than just a high yield. They offer sustainability and growth, so you can rely…

Read more »

oil and gas pipeline
Dividend Stocks

Where Will Enbridge Stock Be in 10 Years?

I wouldn’t be surprised if ENB stock even doubles in value in the next 10 years. Here why.

Read more »

protect, safe, trust
Dividend Stocks

3 Growth Stocks Safe Enough to Hold for a Decade (or More)

Safe growth stocks that can be held for a decade (or more) may offer steady, predictable returns, making them reliable…

Read more »

sale discount best price
Dividend Stocks

These 2 Discounted Stocks Are Ready for a Comeback

Partial recoveries are quite common, but true comebacks (full recovery) are relatively rare, which makes identifying them harder than identifying…

Read more »

Woman has an idea
Dividend Stocks

Where to Invest $10,000 in October 2023

Its crucial to diversify your investments and reduce portfolio risk while investing amid a challenging macro economic backdrop.

Read more »