Market corrections can be uncomfortable, but for smart TFSA (Tax-Free Savings Account) investors, they could also be golden opportunities. In 2025, several high-quality Canadian dividend stocks are trading well below their typical valuations. And in a TFSA, every cent of that dividend income is tax-free.
In this article, I’ll highlight two top dividend stocks worth snapping up while they’re down and explain why they could be ideal long-term holds for your TFSA.
Topaz Energy stock
Let’s start with this under-the-radar energy stock, Topaz Energy (TSX:TPZ), that’s quietly delivering strong, steady returns. This Calgary-based royalty and infrastructure energy firm earns money from assets operated by others. That means it doesn’t have to worry about drilling risks or day-to-day operations, yet it still gets a share of production revenues.
TPZ stock is currently trading around $24.45 per share, giving it a market cap of $3.8 billion. It also offers a healthy annualized dividend yield of 5.4%, which is paid out quarterly and completely tax-free inside a TFSA. Over the past year, the stock has climbed more than 13%, though it’s still down about 17% from its 52-week high, which could be an attractive entry point.
In 2024, lower commodity prices affected Topaz’s revenue. But on the bright side, the company’s processing revenue still hit a record high due to the segment’s strong performance and 100% utilization across its infrastructure assets. Its cash flow for the year came in at $279.3 million, with a solid 87% free cash flow margin.
Topaz is actively expanding its royalty and infrastructure footprint, as it completed over $430 million in acquisitions last year alone. With drilling activity ramping up on its lands and guidance pointing to even higher royalty production in 2025, Topaz could continue to reward its investors with attractive dividends for years to come.
Canadian Imperial Bank stock
Now, speaking of the long term, let’s talk about Canadian Imperial Bank of Commerce (TSX:CM), a top bank stock most Canadian investors know but might be overlooking right now. With a market cap of $77.5 billion, CIBC is the fifth-largest bank in Canada, serving over 14 million clients. Its stock currently trades at $82.46 per share and offers a solid annualized dividend yield of 4.8%, paid quarterly.
After ending 2024 with solid 43% gains, CIBC stock has slid by 9.3% year to date, which could be an opportunity for long-term TFSA investors to add this quality stock to their portfolios.
In its latest quarter, Canadian Imperial Bank’s revenue jumped 17% year over year to $7.28 billion with the help of strong loan growth, higher fees, and improved margins. As a result, its quarterly net profit also climbed to $2.18 billion, with every major segment contributing to the growth. CIBC is continuing to focus on innovative products like global depositary receipts, boosting its artificial intelligence capabilities for better client experiences and maintaining a strong capital position. For TFSA investors, this mix of reliable income and long-term growth strategy makes it a stock worth holding through market ups and downs.
