TFSA Bargains: 2 Dividend Stocks to Buy on the Dip!

Restaurant Brands International (TSX:QSR) stock and another notable TSX stock pick for your TFSA this summer.

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TFSA (Tax-Free Savings Account) investors who haven’t yet put their latest contribution to work may wish to do so on the market’s latest slump. Indeed, it’s been an awful August for investors, with the broader S&P 500 falling just less than 5%. Whether the pullback has further to extend remains anyone’s guess.

Regardless, smart investors should look to buy bargains that they see, regardless of what market pundits see up for markets over the shorter term. At the end of the day, markets move in ways that can be impossible to predict. Instead of timing the market, investors should take advantage of any oversold conditions and seek to get a bargain for their TFSAs.

TFSA bargains to buy ahead of September 2023

Though sailing into the September season can be a scary time for new investors, I think it makes sense to start investing some capital that may be sitting around in cash. Of course, risk-free assets are the most attractive they’ve been in quite a while.

Although you can get rates of above 5% without taking any risk (perhaps with the exception of liquidity risk when it comes to Guaranteed Investment Certificates), stocks are still the best investment to own if you’re looking to build considerable wealth over the course of years or even decades.

With that in mind, let’s have a closer look at two dividend stocks I’m looking at closely on the recent August 2023 pullback.

Restaurant Brands International

First up to the plate, we have my favourite TSX-traded fast-food stock in Restaurant Brands International (TSX:QSR). The stock has been on a hot run since the start of the year. More recently, the stock has sagged alongside most other hot stocks this August. I view the awful August pullback as undeserved, especially after the company’s latest hot round of quarterly earnings results.

Recently, JPMorgan analyst John Ivankoe slapped shares of QSR with an overweight rating. He’s a fan of the “sea change” going on at the firm as it looks to move on from its zero-based budgeting days. Indeed, the new Restaurant Brands is in full-on growth mode. And it’s not afraid to invest money to bolster its earnings growth profile.

I think the upbeat analyst rating makes the recent pullback very intriguing. At writing, the stock is off 8.5%. At 21.21 times trailing price to earnings, with a 3.16% yield, the stock looks like a magnificent dividend bargain worthy of your TFSA!

Nutrien

Nutrien (TSX:NTR) stock is getting absurdly oversold after the past year of excessive selling. The stock’s now off 39% from its 2022 all-time high. It’s been a painful fall from grace, thanks in part to retreating agriculture fertilizer prices. Though the best days may be over, there are still a lot of good days ahead as the company takes advantage of its low-cost production position to rake in ample cash flows.

With a 3.38% dividend yield and a modest 8.5 times trailing price-to-earnings multiple, NTR stock stands out as a deep-value stock that offers juicy (and safe) dividends for any long-term-focused TFSA fund.

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 Joey Frenette has positions in Restaurant Brands International. The Motley Fool recommends Nutrien and Restaurant Brands International. The Motley Fool has a disclosure policy.

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