The market pullback is giving investors a chance to buy some TSX dividend stocks at discounted prices for a self-directed Registered Retirement Savings Plan (RRSP) focused on total returns.
Canadian National Railway
Canadian National Railway (TSX:CNR) trades near $133 per share at the time of writing compared to a 12-month high of around $175.
CN investors had a rough ride in 2024. Labour disputes and wildfires disrupted operations, delayed shipments, and forced some customers to divert their cargos to ports in the United States. This resulted in full-year revenue coming in lower than anticipated. Adjusted earnings took a hit due to increased expenses and reduced network efficiency.
In 2025, the stock faces trade war headwinds. Tariff uncertainty is forcing businesses to reduce orders from international suppliers. CN’s rail network of roughly 20,000 route miles is a key part of the smooth operation of the Canadian and U.S. economies.
That being said, CN provided an upbeat outlook at the end of January when it reported 2024 results. The board increased the dividend for the 25th consecutive year and CN intends to buy back a big chunk of stock while the share price is down.
Investors will need to be patient, but buying CN on material dips has historically proven to be a profitable move over the long run.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is down 24% in the past year. The decline is primarily due to falling oil prices. West Texas Intermediate (WTI) oil trades near US$60 per barrel right now compared to more than US$80 around this time last year.
Oil analysts expect the oil market to remain in a surplus position through 2025 and into next year. Recession fears are providing a headwind in 2025 as markets are concerned that a trade war will cause a meaningful economic downturn in the United States and make an already weak Chinese economy even worse.
Despite the tough market conditions, CNRL delivered strong 2024 results. The company raised the dividend twice last year and increased it again in 2025. That’s 25 consecutive annual dividend increases from Canada’s largest oil and gas company.
Investors who buy CNQ stock at the current price can get a dividend yield of 5.8%. Any positive news on a trade deal between the U.S. and China could send oil prices and the stock sharply higher. In the meantime, you get paid well to wait.
TD Bank
TD Bank (TSX:TD) trades near $87 per share at the time of writing compared to $108 at one point in early 2022. Rising interest rates and troubles with U.S. regulators contributed to the decline that took the share as low as $73 late last year.
TD received fines of more than US$3 billion and had a cap placed on its U.S. assets late in 2024. These are penalties for not having adequate systems in place to prevent money laundering. Most of the bad news, however, should be in the rearview mirror. A new CEO took charge at TD in February with a goal of pivoting the growth strategy while the U.S. asset cap is in place.
TD remains a very profitable company and has adequate capital to ride out the storm and pursue organic growth initiatives in Canada. Investors who buy TD stock at the current price can get a dividend yield of 4.8%.
The bottom line on RRSP investing
Canadian National Railway, CNRL, and TD all trade at discounted prices today and have good track records of long-term dividend growth. If you have some cash to put to work in a self-directed RRSP, these stocks deserve to be on your radar.
