Thinking about investing in value stocks can be a sensible approach, especially when you focus on companies that have strong underlying businesses and good potential for growth. For Canadian investors looking ahead to 2025, there are two notable value Canadian stocks on the TSX that might be worth a look. Those are Bank of Nova Scotia (TSX:BNS) and Finning International (TSX:FTT).
Scotiabank
First, let’s consider Bank of Nova Scotia, often simply called Scotiabank. It’s one of Canada’s major financial institutions, offering a wide array of banking and financial services.
Looking at the most recent earnings report for the first three months of 2025, Scotiabank reported a net income of $2.3 billion. This came to $1.86 per share. This is an increase compared to the $2.25 billion, or $1.78 per share compared to the year before. The bank’s revenue also increased by 4% to $8.1 billion. This was driven by strong performance in the Canadian banking and global wealth management divisions.
Scotiabank’s diverse business model and its presence in international markets, particularly in Latin America, could position it well for future growth. The Canadian stock’s focus on using digital technology more and on initiatives that put customers first has helped to improve how efficiently they operate and how satisfied their customers are. Furthermore, Scotiabank offers a solid dividend yield of around 6.22% at writing. This can make it an attractive option for investors who are looking for a regular income from their investments.
Finning
Next, let’s consider Finning International (TSX: FTT). Finning International is the world’s largest dealer of Caterpillar equipment, handling sales, rentals, and servicing of equipment and engines. Headquartered in Vancouver, B.C., Finning operates in Canada, South America, and the United Kingdom.
In the latest earnings report for the last three months of 2024, Finning reported net revenue of $1.9 billion. This was a 6% increase from the $1.8 billion reported in the same quarter the year before. The Canadian stock’s net income rose to $120 million, or $0.72 Canadian per share, up from $110 million, or $0.66 per share, year over year. This growth was driven by increased demand in the mining and construction sectors, as well as improvements in how efficiently they operate.
Finning’s strategic efforts have strengthened its position in the market. These include expanding the range of products offered and improving digital capabilities. The Canadian stock’s commitment to returning value to shareholders is evident in its consistent dividend payments. It now has a current yield of around 2.85%. Finning’s strong financial position and focus on operating well could allow them to take advantage of future opportunities in the equipment and services industry.
Bottom line
Both Scotiabank and Finning International could represent compelling value opportunities for Canadian investors in 2025. Scotiabank’s varied operations and strong dividend yield make it a solid choice in the financial sector, while Finning’s leading position in equipment sales and services, along with its growth plans, offer promising prospects in the industrial sector. As always, it’s important for investors to do their own thorough research, think about their individual financial goals, and know how much risk they are comfortable with before making any investment decisions.
