Canadian investors are searching for good TSX dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on dividend income and total returns.
Markets have broadly bounced back from much of the decline in recent months caused by the tariff uncertainty, but some top Canadian stocks still trade at discounted prices.
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Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) trades near $70 per share at the time of writing. The stock has trended higher in the past month after taking a big hit to start the year but is still down from the $80 it fetched in early December.
Bank of Nova Scotia is going through a transition that will see the company focus investment capital on the United States and Canada instead of Latin America. The transition, in fact, has already started.
Bank of Nova Scotia spent US$$2.8 billion in 2024 to buy a 14.9% stake in KeyCorp, an American regional bank. The deal gives Bank of Nova Scotia a good platform to expand its U.S. presence.
Earlier this year, Bank of Nova Scotia sold its operations in Colombia, Costa Rica, and Panama. The bank took a charge of more than $1 billion on the deal, which is likely why the stock extended its pullback. Investors will want to see if more sales in Latin America are on the way and at what price.
It will take time for the turnaround efforts to deliver results, but investors with a contrarian investing style can now pick up a solid 6% dividend yield from the stock while they wait.
Investors will want to keep an eye on trade negotiations between the U.S. and its neighbours. Bank of Nova Scotia has a large presence in Canada and Mexico.
Suncor
Oil prices recently rallied on news that the U.S. and China are reducing tariffs for 90 days while they negotiate a trade deal. The progress is important for the oil industry, given that the two countries are the largest oil consumers. Fears that the Chinese economy could weaken further and that the U.S. might slide into a recession drove the price of West Texas Intermediate (WTI) oil to as low as US$57 per barrel last week. It was above US$80 last year. At the time of writing, WTI oil is above US$62.
Suncor (TSX:SU) has made good progress on its turnaround efforts over the past two years. The company has reduced costs and improved efficiency. In the first quarter of 2025, Suncor delivered record upstream production, record refining throughput, and record refined product sales.
Suncor’s integrated business model includes oil sands assets, refineries, and retail operations. The downstream assets help offset the margin hit when oil prices fall. Lower input costs can actually boost margins on the refined products.
If the United States can get trade deals done quickly enough to avoid a global recession, the oil market could continue its recovery.
Suncor raised its dividend for 2025 and is allocating 100% of excess cash to share buybacks. The stock trades near $50 at the time of writing. It was as high as $58 in February. Investors who buy Suncor at the current level can get a dividend yield of 4.5%.
The bottom line
Near-term volatility should be expected, but Bank of Nova Scotia and Suncor look attractive at their current levels and offer good dividend yields. If you have some cash to put to work, these stocks deserve to be on your radar.
