3 Canadian Dividend Stocks to Add to Your Income Portfolio

Top TSX dividend stocks are now on sale.

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The market correction is giving retirees a chance to buy top Canadian dividend stocks at discounted prices for self-directed Tax-Free Savings Account (TFSA) portfolios focused on passive income.

Buying stocks on dips requires a contrarian mentality, and cheap stocks can go even lower before the recover. However, adding good dividend stocks when they are down is a good way to get a better yield on the investment, and it sets you up for decent potential total returns on the rebound.


BCE (TSX:BCE) continues to expand its 5G network and is connecting residential and commercial clients directly to fibre optic lines. These initiatives are capital intensive, but they set BCE up for revenue growth in the coming years while helping protect the company’s competitive position in the Canadian communications industry.

BCE stock trades near $57 per share at the time of writing compared to more than $70 at the peak in 2022.

The pullback looks overdone, even as high interest rates drive up debt costs and a slump in ad spending hits the media group. BCE expects adjusted earnings to fall in 2023, but overall revenue and free cash flow should increase compared to last year, supported by ongoing strength in the core mobile and internet services.

BCE has raised its dividend by at least 5% in each of the past 15 years. Investors who buy the stock at the current level can get a 6.8% dividend yield.


Enbridge (TSX:ENB) is working on a $17 billion capital program that should deliver steady earnings growth and distributable cash flow growth in the coming years. The company’s market capitalization of nearly $100 billion gives Enbridge the flexibility to make strategic acquisitions to boost revenue. Investors benefit from a diversified revenue stream that comes from oil pipelines, oil export sites, natural gas transmission networks, natural gas utilities, and renewable power assets.

ENB stock trades near $48 per share at the time of writing compared to more than $59 at one point last year. Investors who buy the dip can now get a 7.3% dividend yield. Enbridge raised its dividend in each of the past 28 years.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) has a new chief executive officer in 2023 who is putting the entire bank through a strategic review to see where changes can be made to boost returns for shareholders. BNS stock has underperformed its peers in recent years, so it will be interesting to see if a major overhaul is on the way.

Pundits speculate the international operations located in Mexico, Peru, Chile, and Colombia could get sold and the funds used to enter new markets, potentially the United States, where other Canadian banks have done big deals.

Mexico will likely remain strategically important, but the operations in the other three markets could be monetized.

At home, Bank of Nova Scotia would be a possible buyer of Laurentian Bank (TSX:LB), which is considering putting itself up for sale. Bank of Nova Scotia wants to expand its presence in Quebec, so this would be a good way to jump-start the process.

Investors will likely have to wait until the end of the year before changes are announced. In the meantime, the stock looks attractive near the current price of $66 per share. BNS traded above $90 in early 2022. At the time of writing, the stock offers a 6.4% dividend yield.

The bottom line on top dividend stocks

BCE, Enbridge, and Bank of Nova Scotia pay attractive dividends that should continue to grow. If you have some cash to put to work in a portfolio targeting passive income, these stocks 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 and Enbridge. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker owns shares of BCE and Enbridge.

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