Value + Yield: 2 Blue-Chip Dividend Stocks Down 30% to 55% That Demand Attention

Nutrien (TSX:NTR) and another cheap dividend stock may be worth checking out for 2025.

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Oftentimes, depressed valuations can accompany fat dividend yields, especially if we’re talking about the shares of a company that have been under enough pressure that the yield has swelled to the higher end of the historical range.

Indeed, truly troubled firms that have shed north of half of their value may sport yields that are close to double that of historical averages. And while it’s always nice to get shares of a company at a much lower price of admission, the supercharged dividend may not be as safe and sound as it once was when the firm wasn’t crumbling under the weighed of headwinds or idiosyncratic issues.

In this piece, we’ll check out two cheap Canadian blue chips that have been down and out for well over a year now. After sagging even lower for 2024, contrarian investors may be interested in checking out the two names to play a potential bounce-back year in 2025.

TD Bank

Indeed, when it comes to crises that are specific to certain companies (think TD Bank (TSX:TD) and the painful aftermath of the money-laundering fiasco, which haunts shares to this day), there tends to be a massive haze of uncertainty that could make valuing shares that much more difficult.

Undoubtedly, the big banks tend to be quite hard to value already, even without factoring in big management changes (a new chief executive officer coming in very soon) and the unanswered questions surrounding how TD Bank will grow with restrictions in place.

It’s not hard to imagine TD’s peers are gaining a leg up while TD seeks to iron out the remaining wrinkles in its now highly hazy long-term growth story. Either way, I think TD Bank stock is shaping up to be a fantastic high-yield dividend play to buy and hold for the next three years.

Going into 2025, there’s going to be somewhat higher expectations in place for Canada’s big banks. For TD, though, which hasn’t gained as much as its rivals have in 2024, it won’t take nearly as much to spark an upward move, at least in my opinion.

With the stock down close to 31%, there’s already so much damage dealt to the name—arguably too much damage. Perhaps a big announcement and some words from the new CEO could be enough to help beckon value hunters back into the stock in the coming months. With fellow Canadian bank stock Bank of Montreal recently upgrading TD shares while noting the “steep discount,” it’s hard not to want to be a huge buyer while TD’s dividend yield is over 5%.

Created with Highcharts 11.4.3Toronto-Dominion Bank PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Nutrien

Nutrien (TSX:NTR) has been another hard stock to own in 2024. Year to date, shares of the fertilizer firm are down 16%, putting it nearly 53% off from its all-time highs. Understandably, agriculture demand has fallen into a serious slump. And while it’s hard to tell when agricultural commodity prices will soar again, I do view Nutrien as one of the best players in the industry.

While the fertilizer market is anything but exciting, I do see ample value to be had for investors willing to wait things out as they take in the 4.7%-yielding dividend. Like with TD, the future is cloudy, with a chance of further showers. That said, if value and yield are what you’re after, the name looks incredibly tempting for those looking to start the new year on the right foot.

Just don’t expect Nutrien to turn a corner anytime soon. The turnaround and bottoming-out process could really drag for some time.

Created with Highcharts 11.4.3Nutrien PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Should you invest $1,000 in BCE right now?

Before you buy stock in BCE, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and BCE wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Bank Of Montreal and Toronto-Dominion Bank. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Asset Management
Dividend Stocks

How I’d Allocate $10,000 in 2 Canadian Growth Stocks for the Long Run

Both growth stocks offer a compelling mix of income, growth, and value, and I believe they can outperform over the…

Read more »

grow money, wealth build
Dividend Stocks

2 Dividend-Growth Stocks to Buy on the Pullback

These stocks have increased their dividends annually for decades.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

BCE Stock Analysis: A Smart Choice for Potential Value and Income

BCE stock has slipped to its June 2009 level amid Trump tariff uncertainty and intensity. Does the sharp dip provide…

Read more »

Person slides down a stair handrail
Dividend Stocks

Should You Buy Cargojet Stock at $70?

Cargojet stock might be down, but don't let that scare you off. It's still a long-term opportunity.

Read more »

Middle aged man drinks coffee
Dividend Stocks

3 Monthly Dividend Stocks to Buy and Hold Forever

Add these three TSX dividend stocks to your self-directed portfolio for reliable monthly passive income.

Read more »

Hourglass projecting a dollar sign as shadow
Dividend Stocks

How I’d Build an Income Portfolio With 3 TSX Stocks Paying Monthly Dividends

Focusing on these three monthly paying TSX dividend stocks can help you reinvest more frequently, enhancing overall returns.

Read more »

Dividend Stocks

How I’d Divide $15,000 Across My Top 3 TSX Stock Picks for Growth and Income

Got $15,000? Here are three TSX stocks that could provide ample dividend and capital returns in the coming years ahead.

Read more »

concept of real estate evaluation
Dividend Stocks

Canadian Real Estate Stocks: How I’d Navigate This Sector With $15,000 During The Pullback

A $15,000 investment split among these two undervalued Canadian defensive REITs could generate high income yields with capital gains upside

Read more »