RRSP Investors: 3 Cheap Dividend Stocks That Could Soar in 2024

These top TSX dividend stocks look oversold today.

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The plunge in the share price of many top TSX dividend stocks has driven yields to attractive levels. Contrarian investors are wondering which top Canadian dividend stocks might now be undervalued and good to buy for a self-directed Registered Retirement Savings Plan (RRSP) portfolio.

TC Energy

TC Energy (TSX:TRP) trades for close to $50.50 per share at the time of writing compared to $74 at one point last year.

The drop is largely due to rising interest rates. Higher borrowing costs have a big impact on pipeline companies that use debt as part of their funding strategy for development projects. It can take years for new assets to be built before they go into operation and begin to generate revenue.

TC Energy also came under pressure in the past 12 months as its Coastal GasLink pipeline ran into delays and saw costs more than double to about $14.5 billion. Fortunately, the project has reached mechanical completion.

Despite the challenges, TC Energy’s overall asset portfolio is performing well and management is still targeting annual dividend growth of 3% to 5%. At the current level, the stock provides a 7.3% yield.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) trades near $60 per share at the time of writing. The stock was above $90 in early 2022.

High interest rates are the culprit in this case, as well, but the reason is quite different. Banks normally benefit from rising rates as they help drive better net interest margins. However, investors are concerned that the aggressive moves by the Bank of Canada to get inflation under control have gone too far. The steep jump in rates over the past two years is putting businesses and households with too much debt in a bad situation. If the economy goes into a deep recession and unemployment spikes, there could be trouble ahead for the banks.

That being said, most economists expect to see a short and mild recession in 2024 or 2025. Some are predicting a reduction in interest rates next year. In the soft landing scenario, Bank of Nova Scotia is likely oversold at the current price. Investors who buy BNS stock right now can get a 7% yield.


Telus (TSX:T) has increased its dividend annually for more than two decades. The communications firm gets most of its revenue from essential mobile and internet subscription services that households and businesses need regardless of the state of the economy.

Telus cut 6,000 jobs this year to adjust to challenging market conditions at its Telus International subsidiary and to streamline the company structure. The stock fell from a 2022 high of around $34 to as low as $21 last month. Bargain hunters have pushed the stock back up to $24, but Telus still looks cheap. Management expects consolidated revenue to rise by at least 9.5% this year compared to 2022. At the time of writing, the stock provides a 6.25% dividend yield.

The bottom line on top TSX dividend stocks

TC Energy, Bank of Nova Scotia, and Telus pay attractive dividends that should continue to grow. If you have some cash to put to work in a self-directed RRSP, 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, TELUS, and Telus International. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker owns shares of Telus.

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