Even as the TSX sits near its record high, self-directed Registered Retirement Savings Plan (RRSP) investors can still find some dividend deals in the market for a buy-and-hold portfolio focused on total returns.
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Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is up about $8 per share from the 12-month low it hit two months ago. At the current price near $44, the stock is still well off the $55 it reached in April 2024.
Falling oil prices led to the pullback that occurred through much of last year and into 2025. West Texas Intermediate (WTI) dropped from more than US$80 per barrel to below US$60. WTI currently trades near US$74, up considerably in recent weeks on geopolitical risks in the Middle East.
Near-term turbulence is expected as the market weighs oversupply and tariff-induced demand risks against threats of a broader escalation in the tensions between the United States and Iran. CNRL, however, continues to deliver solid results through the volatility. Its WTI breakeven is US$40 to US$45 per barrel, so the company generates good margins at current prices. CNRL is also a major natural gas producer. The board raised the dividend in each of the past 25 years. Investors who buy CNQ stock at the current price can get a dividend yield of 5.3%.
TC Energy
TC Energy (TSX:TRP) trades near $65 per share at the time of writing compared to a 12-month high of $71. The stock is still up more than 20% in the past year, but investors can take advantage of the recent dip to pick up a decent 5.1% dividend yield.
TC Energy recently completed two major pipeline projects that will contribute revenue growth over the next few years. The $14.5 billion Coastal GasLink pipeline carries natural gas from Canadian producers to the new LNG Canada liquified natural gas export facility on the coast of British Columbia. In Mexico, the Southeast Gateway pipeline came in 13% under budget. The asset is key to Mexico’s gas-fired power generation expansion plans as it will move natural gas to new facilities being built to supply electricity in the country.
Closer to home, TC Energy’s extensive natural gas transmission and storage infrastructure in Canada and the United States positions the company to benefit from the expected rise in natural gas demand as new gas-fired power facilities are built for AI data centres. TC Energy’s management team refocused the business on natural gas infrastructure and power generation in the past year after spinning off the oil pipelines division.
The renewed push for Canada to build new pipelines to bring oil and natural gas to the coast to access international markets could be an opportunity for TC Energy to participate in large new domestic projects. Non-core asset sales over the past few years strengthened the balance sheet, enabling the company to pursue additional growth initiatives.
TC Energy raised its dividend in each of the past 25 years. Annual ongoing dividend hikes of 3% to 5% should be supported by planned capital investments of roughly $6 billion per year over the medium term.
The bottom line
CNRL and TC Energy pay attractive dividends that should continue to grow. If you have some RRSP cash to put to work, these stocks deserve to be on your radar.
