The second half of 2025 promises twists in the market, but two Canadian dividend stalwarts are trading below their long-term value and deserve serious attention. In times of volatility, income helps soften the ride. Two TSX stocks offering solid payouts without premium prices are Canadian Imperial Bank of Commerce (TSX: CM) and BCE (TSX: BCE). Both combine stability, reliable dividends, and room to grow.
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CIBC
Canadian Imperial Bank of Commerce, or CIBC, reported strong second-quarter results in late May. It earned revenue of $6.4 billion, up 14% from the same quarter a year earlier. Net income grew around 17%, translating to earnings per share (EPS) of $2.05, which also beat expectations. Its return on equity reached an impressive 13.9%, up 50 basis points from the previous year.
The dividend stock continues to execute on its strategy of expanding wealth and capital market value in the U.S. and Canada. It remains cautious but confident through uncertain economic conditions. Equally notable is its commitment to returning capital to shareholders. During the quarter, it repurchased $500 million worth of shares, maintaining a strong capital ratio of about 13.4%. And it continues to pay a generous dividend that currently yields around 6% at current prices.
BCE
BCE is Canada’s largest telecom provider, delivering a return to shareholders in the form of a high-yield dividend. Its first-quarter 2025 report shows operating revenues of $5.9 billion, a slight decline from $6 billion in the previous year. Yet strong net earnings of $683 million, or $0.63 per share, reflect efficient cost control and a profitable underlying business.
The dividend stock now offers a dividend yield at about 5.6%, with its most recent ex-dividend date in mid-June. Despite the telecom’s reputation for being mature, BCE continues to invest in fibre optic networks, 5G, and its pending U.S. acquisition, which could add new growth avenues, even as it stays focused on steady cash flow and shareholder returns.
Stronger together
Both companies share appealing traits. These operate in defensive sectors of banks and utilities and telecom, which tend to hold up when other industries wobble. The latest earnings show fiscal discipline, strong cash generation, and resilience through economic uncertainty. And both pay dividends that are generous compared to typical Canadian stocks.
CIBC offers exposure to rising interest rates, a growing banking business in Canada and the U.S., and improving loan margins. BCE connects to consumers through essential communication services that people rely on every day. Between fibre networks, wireless, media, and business services, it continues to generate stable free cash flow.
Valuations for both stocks reflect caution but also opportunity. CIBC trades at a modest price-to-earnings ratio given its earnings growth and capital return strategy. BCE’s yield sits near 6%, well above the broader market, while the dividend stock trades below its five-year average dividend yield. For income-focused investors, that combination is rare.
Bottom line
As we enter the second half of 2025, volatility remains a theme. Inflation concerns may linger, global uncertainty could stress markets, and interest rates might shift unexpectedly. During such periods, dividend income provides a buffer. It offers real returns even if share prices stay flat or dip. For investors who want exposure to two well-known Canadian names with strong cash returns, CIBC and BCE deserve a place on the watchlist.
Right now, investors could bring in $651.12 from these two dividend stocks with a $10,000 investment. That’s peace of mind which makes the investment worth any short-term volatility.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| CM | $92.18 | 54 | $3.88 | $209.52 | Quarterly | $4,981.72 |
| BCE | $31.12 | 160 | $2.76 | $441.60 | Quarterly | $4,979.20 |
In short, dividend income matters. It boosts total return and cushions the impact of market drops. CIBC and BCE offer both factors while trading at reasonable levels. They may not be the flashiest growth stories, but their combination of yield, stability, and upside potential makes them smart options in a turbulent market. For those building portfolios with income at the centre, these two could be both dependable and rewarding.
