4 Great TSX Dividend Stocks That Still Look Cheap

Let’s look at four great TSX dividend stocks you can buy cheap and earn compelling yields.

| More on:
value for money

Image source: Getty Images

The equity market is heading higher despite an uncertain macro trajectory. Moreover, the expected decline in interest rates will likely support the uptrend in TSX stocks. While stocks are trending higher, several great TSX dividend stocks are still trading cheaply, providing an opportunity for income investors to buy and hold these stocks and earn steady passive income.

Against this background, let’s look at four great TSX dividend stocks you can buy cheaply and earn compelling yields.


Shares of telecom company Telus (TSX:T) are down about 13% over the past year as a challenging macroeconomic environment has elongated its sales cycles and impacted top-line growth. Nonetheless, the company’s fundamentals remain strong, and it continues to generate solid earnings and cash flows, driven by its significant cost-reduction program.

While Telus stock is trading cheaply, it has increased its dividend 26 times in the last 14 years. This shows the company’s ability to consistently generate profitable growth. Looking ahead, the company expects its sales to improve, which will further support its profitability and dividend payouts. Telus plans to increase its dividend by 7-10% annually through its dividend-growth program. Moreover, it offers an attractive yield of 6.7% based on its closing price of $22.44 on June 3.


Trading at a forward price-to-earnings multiple of 9.9 and a price-to-book value ratio of one, Scotiabank (TSX:BNS) offers significant value. This leading Canadian bank stock is famous for its stellar dividend payments. For instance, Scotiabank has been paying dividends since 1833. Moreover, the bank’s dividends have grown at a compound annual growth rate (CAGR) of 6% in the past decade.

Scotiabank’s exposure to high-growth markets, focus on diversifying its revenue streams, improving efficiency, and solid balance sheet will enable the financial services giant to enhance its shareholders’ returns through higher dividend payments. Scotiabank currently offers a compelling yield of 6.6%.

SmartCentres REIT

Speaking of great dividend stocks that are trading cheaply, investors could consider adding SmartCentres Real Estate Investment Trust (TSX:SRU.UN) to their portfolio. This real estate investment trust (REIT) owns a high-quality real estate portfolio, primarily focused on retail properties, and consistently generates strong same-property net operating income (NOI), which supports its payouts.

The REIT pays a monthly dividend of $0.154 per share, which translates into a high yield of over 8.2% based on its closing price of $22.54 on June 3. SmartCentres’s high occupancy rate, top-quality tenant base, an underutilized land bank, and a solid pipeline of mixed-use projects suggest that the REIT could continue to generate solid NOI and consistently return cash to its shareholders.


Enbridge (TSX:ENB) is the final stock on this list. This energy infrastructure company is one of the most reliable TSX stocks to earn steady dividend income. It has paid dividends for over 69 years and raised the same for 29 consecutive years. The company’s diversified revenue stream, power-purchase agreements, and long-term contracts consistently drive its distributable cash flow (DCF) per share in all market conditions and dividend payments.

Enbridge’s earnings per share and DCF per share are forecasted to grow at a CAGR of approximately 5% in the long term. This indicates that the energy giant could increase its upcoming dividends at a mid-single-digit rate. Its payouts are well protected. Moreover, Enbridge offers a worry-free yield of 7.4%. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia, Enbridge, SmartCentres Real Estate Investment Trust, and TELUS. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Dividend Stocks

Dividend Investors: Top Canadian Utility Stocks For June

Here are three of the top Canadian utilities stocks long-term investors may want to consider as portfolio staples moving forward.

Read more »

data analyze research
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Two stocks paying monthly dividends are excellent options for income-focused investors looking to increase their passive-income streams.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Invest $7,000 in This Dividend Stock for $519 in Passive Income

A $7,000 investment in this top dividend stock could generate over $519 annually in passive income.

Read more »

growing plant shoots on stacked coins
Dividend Stocks

3 Stocks Ready for Dividend Hikes in 2024

These three stocks are not only primed to increase their dividends again this year; they are three of the best…

Read more »

Dividend Stocks

Add These 6 Undervalued Stocks to Your TFSA Before Prices Pick Back Up

These six undervalued stocks are perfect for those seeking massive passive income for your TFSA, and prices are about to…

Read more »

Golden crown on a red velvet background
Dividend Stocks

The Dividend Kings: Stocks Every Canadian Investor Should Own

Dividend Kings have the status for a reason. They're stable, growing companies that will provide dividends to investors for decades.

Read more »

Business success with growing, rising charts and businessman in background
Dividend Stocks

2 High-Yield (But Slightly Risky) Stocks to Keep Your Eye On

Income investors may want to keep an eye on two high-yielding stocks but should be conscious about the inherent business…

Read more »

Beware of bad investing advice.
Dividend Stocks

3 No-Brainer Stocks to Buy With $50 Right Now

No-brainer stocks may vary from time to time. Stocks from specific sectors and industries may become no-brainer picks in some…

Read more »