TSX dividend stocks are some of the most stable and reliable equities out there. Boasting a solid yield, high dividend growth and reasonable payout ratios, they are some of the best of their type in the world. In this article, I explore five TSX dividend stocks costing less than $1,000 that may be worth buying today.
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Suncor Energy
Suncor Energy Inc (TSX: SU) is one of Canada’s biggest and most powerful energy companies. It extracts and markets crude, refines oil, and operates the Petro-Canada gas station chain. SU shares pay a dividend; the yield is a fairly juicy 4.5%, and the payout ratio is a mere 39%.
Suncor Energy, as an integrated energy company, is a direct play on oil prices. The higher the WTI oil price goes, the more money Suncor makes. At the same time, Suncor’s refining and gas station operations give it ways of profiting even in relatively weak oil markets. So, it’s a diversified energy company that should do well in various market conditions.
TD Bank
The Toronto-Dominion Bank (TSX: TD) is Canada’s second biggest bank. It is one of the cheapest North American mega-banks right now, trading at just 11 times earnings. The reason TD is so cheap is because it got caught up in a money laundering scandal in 2023 and 2024. As a result of the scandal, the bank took a $3 billion fine and a $430 asset cap. The fine was a big hit, but the asset cap gave TD money to buy back shares at a cheap price. So, TD is a good return of capital play today.
Brookfield Renewable Partners
Brookfield Renewable Partners (TSX: BEP.UN) is a Canadian renewable energy company that recently scored a deal to supply Microsoft (NASDAQ: MSFT) with 10.5 gigawatts of clean power over a few years. The company’s stock is modestly valued if not dirt-cheap, trading at 11.3 times cash flow. The partnership has an extremely high dividend yield–6.7% at today’s prices. This stock will likely thrive if companies and governments keep pushing clean power.
CN Railway
The Canadian National Railway (TSX: CNR) is a Canadian railroad company with an impressive three coast rail network. It ships goods like oil, timber, and grain all across North America. The railway operates with relatively little competition, having only one major competitor in Canada and a small handful of them in the United States. Its shares pay a dividend that yields 2.5%. Though CNR’s yield is not high, its historical dividend growth has been impressive, with the payout having risen 10% per year over the last five years.
Fortis
Fortis Inc (TSX: FTS) is one of Canada’s most beloved dividend stocks. Sporting a 3.6% yield and 51 consecutive years of dividend increases, it is a true Dividend Stud.
Fortis is a utility, which means that it supplies heat, light, and power. It is a near-monopoly in some of its service areas. The company’s services are essential to survival, which means that Fortis doesn’t take too much of a hit in recessions. And, the company is reasonably well run, with sensible levels of debt and payout ratios for a utility (some utilities push it with these metrics).
