A market correction doesn’t feel great in the moment. Stocks drop, portfolios dip, and nerves start to fray. But for long-term investors, these short-term pullbacks can be a gift. And some of Canada’s solid dividend stocks are currently trading at more attractive valuations. Let’s take a tour through four that look appealing right now: Spin Master (TSX:TOY), Tamarack Valley Energy (TSX:TVE), Chorus Aviation (TSX:CHR), and Fortis (TSX:FTS).
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TOY
Spin Master might not scream “dividend stock” at first glance. It’s better known for making Paw Patrol, Hatchimals, and Rubik’s Cubes. However, the company has matured into a global entertainment business with fingers in digital games, TV production, and toy licensing. It began paying dividends in 2021 and now offers a quarterly payout of $0.12 per share. That gives it a dividend yield of around 1.86% at writing.
It’s not the highest yield, but when you consider Spin Master’s earnings growth, low debt, and free cash flow, it starts to look like a smart long-term hold. In its most recent earnings report, Spin Master reported revenue of US$489 million, up from the prior quarter, with net income coming in at US$43.7 million. The dividend stock continues to expand its digital games division, and it’s sitting on nearly US$1 billion in cash, giving it lots of flexibility moving forward.
TVE
Tamarack Valley Energy is a small-cap oil and gas company that’s punching well above its weight. Based in Calgary, it’s focused on light oil and natural gas assets in Alberta. Tamarack pays a monthly dividend of $0.0125 per share, which adds up to an annual yield of about 3.7% at writing.
It’s not uncommon for energy stocks to be volatile, and Tamarack is no exception. However, management has been laser-focused on keeping costs low and using excess cash to pay down debt. In its most recent quarter, the dividend stock posted a cash flow of $148 million and a net income of $36 million. It also reduced its net debt to under $900 million. For investors willing to tolerate a little more movement in share price, Tamarack offers a compelling combination of income and upside as oil demand remains stable.
CHR
This Halifax-based company runs regional flights in partnership with Air Canada and leases aircraft to airlines around the world. It suspended its dividend back in 2020 during the height of COVID-19, which was rough but understandable given the devastation in the airline industry. The good news is that Chorus has since recovered a significant portion of its business.
In its most recent earnings, Chorus reported $424 million in revenue and net income of $19.2 million, along with strong performance in its leasing division. The company has yet to reinstate its dividend, but given its earnings momentum and strengthening balance sheet, a return to payouts isn’t out of the question. For income investors willing to be a little patient, this could be a sleeper pick with major rebound potential.
FTS
Fortis is the classic pick for anyone who just wants to sleep well at night. It is one of Canada’s largest utility companies, delivering electricity and gas to more than 3.4 million customers across North America. The dividend stock has increased its dividend for 51 consecutive years, which is basically unheard of in Canada.
Right now, it’s yielding about 3.57%, and management expects dividend growth of about 4-6% annually over the next few years. In the first quarter of 2025, Fortis reported adjusted net earnings of $442 million, with its capital expenditure plan remaining on track. It’s aiming to invest over $25 billion through 2029, with a strong focus on decarbonizing its infrastructure while keeping rates affordable. Fortis is boring in the best possible way.
Bottom line
So, what does this all mean for investors watching the current correction? While markets are wobbly, stocks like these may offer stability, growth, or a path back to income. Spin Master brings innovation and long-term upside. Tamarack Valley delivers cash flow and yield with exposure to energy. Chorus Aviation is on the rebound and could surprise with a dividend reinstatement. Fortis, meanwhile, is a steady hand that just keeps paying.
