Market volatility has Canadian Tax-Free Savings Account (TFSA) investors wondering where they can find good value in TSX dividend stocks today. Buying stocks on pullbacks takes some courage, but it also enables investors to get better dividend yields and a shot at decent capital gains on a rebound.
TD Bank
TD Bank (TSX:TD) trades near $87.50 at the time of writing. The stock is up 14% in 2025 after a rough ride that saw the share price slide from $108 in early 2022 to as low as $73 late last year.
TD ran into trouble with U.S. regulators in 2024 for not having adequate systems in place to prevent money laundering at some of the U.S. branches. This led to a fine of more than US$3 billion and a cap on TD’s American assets. The bank’s growth strategy over the past two decades focused heavily on the American market. As a result, TD is being forced to look for other opportunities to expand its business.
A new CEO took control of the company in February this year. Since then, TD sold its remaining holdings in Charles Schwab for proceeds of roughly $20 billion. TD is using $8 billion for share buybacks and will allocate the rest of the funds to drive organic growth and other initiatives.
This is a transition year for the bank, so investors will need to be patient. However, TD remains a very profitable company and has the means to pivot its growth focus while the asset cap remains in place in the U.S. market.
Investors who buy TD stock at the current level can get a dividend yield of 4.8%.
Suncor
Suncor (TSX:SU) just reported strong first-quarter (Q1) 2025 results despite the challenging environment in the oil market. Net earnings came in at $1.69 billion compared to $1.61 billion in Q1 2024. Record production, record refining throughput, and record refined product sales helped offset lower oil prices.
Suncor is best known for its oil sands production, but the company also has refineries and a portfolio of Petro-Canada retail locations. When oil prices drop, the downstream businesses can benefit as lower input costs can result in higher margins on the sale of refined products.
Suncor continues to shore up its balance sheet. Net debt at the end of Q1 2025 was $7.56 billion compared to $9.55 billion in the same quarter last year. With net debt below $8 billion, Suncor is returning 100% of excess cash to shareholders through share repurchases. Suncor also previously increased its dividend by 5% for 2025.
Oil prices are expected to remain under pressure for 2025 and into 2026 due to excess supply in the global market, but the situation should eventually change. In the meantime, investors can get a 4.8% dividend yield from the stock. Suncor trades near $47.50 at the time of writing, compared to a 12-month high of around $58.50.
The bottom line on cheap TSX dividend stocks
TD and Suncor are good examples of top TSX companies that trade at discounted prices and offer attractive dividend yields. If you have some cash to put to work, these stocks deserve to be on your radar.
