TFSA Passive Income: 2 Oversold Stocks to Buy Now

These top Canadian dividend stocks now offer attractive yields.

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The steep rise in interest rates over the past year has triggered a market correction in certain TSX sectors. Top Canadian dividend stocks now trade at discounted prices and offer attractive yields for investors who want to generate passive income inside a self-directed Tax-Free Savings Account (TFSA) portfolio.


Enbridge (TSX:ENB) is a giant in the North American energy infrastructure industry. The firm is best known for its vast oil pipeline network that moves about 30% of the oil produced in Canada and the United States. The natural gas transmission assets, however, are also significant and carry about 20% of the natural gas used by American homes and businesses.

In recent years, the challenges faced in getting large new oil and natural gas pipeline projects approved and built have led to a shift in Enbridge’s growth strategy. The company is focusing new investments on exports, renewable energy, and natural gas distribution utilities.

Global oil and natural gas demand is expected to remain robust in the coming years, with international buyers searching for reliable sources from stable suppliers. Enbridge purchased an oil export terminal in Texas in 2021 and has secured a stake in a new liquified natural gas (LNG) export facility being built in British Columbia.

The recent announcement of Enbridge’s US$14 billion deal to acquire three natural gas utilities in the United States indicates the size of the shift in the company’s growth strategy. The purchases will combine with the existing natural gas utilities Enbridge owns in Canada to make Enbridge the largest natural gas utility operator in North America. These assets generate reliable rate-regulated revenue and cash flow that will diversify Enbridge’s revenue stream. That should provide further support for Enbridge’s dividend.

Enbridge trades near $43.50 per share at the time of writing compared to $59 at the high point in 2022.

The drop is largely due to rising interest rates rather than any specific issues with the company’s operations. As soon as rate hikes end, the share price could bounce.

Investors who buy ENB stock at the current level can get a dividend yield of 8.1%. The company has increased the distribution in each of the past 28 years.


Telus (TSX:T) expects to generate consolidated operating revenue growth of at least 9.5% in 2023 compared to last year, driven by strong performances from the mobile and internet subscription businesses. These are essential services that households and businesses require, regardless of the state of the economy. As such, Telus should be a good stock to own during an economic downturn.

Telus trades for close to $22 per share at the time of writing compared to more than $34 last year. Rising interest rates are largely to blame, but Telus is also dealing with challenges at its Telus International subsidiary. The company provides multi-lingual call centre services and IT services to global clients and is facing a decline in revenue.

Issues at TIXT could linger, but the drop in the share price of Telus stock is likely overdone. The board has increased the dividend every year for more than two decades. At the time of writing, investors can get a 6.5% dividend yield.

The bottom line on top TSX dividend stocks

Enbridge and Telus pay attractive dividends that should continue to grow. If you have some cash to put to work in a TFSA, these stocks look cheap today 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, TELUS, and Telus International. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker owns shares of Enbridge and Telus.

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