Canadian investors who missed the big rally off the April market pullback are wondering which top TSX dividend stocks might still be good to buy for a self-directed Registered Retirement Savings Plan (RRSP) focused on total returns.
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Canadian National Railway
Canadian National Railway (TSX:CNR) trades near $141 per share at the time of writing. The stock was as high as $180 at one point last year, so investors have a chance to buy the rail operator on a meaningful pullback.
The decline in 2024 largely occurred due to operational issues caused by labour strikes at both CN and key ports. This forced some customers to find alternative transport options. CN also had to contend with wildfires in Alberta last year that created delays across the rail network. The combined effect of the disruptions drove up expenses and reduced efficiency. CN still managed to deliver a small increase in revenue in 2024 compared to 2023, but profits declined due to the jump in expenses.
In 2025, the stock has been under pressure amid trade uncertainty. CN operates 20,000 route miles of tracks that cross Canada from the Pacific to the Atlantic and run down through the United States to the Gulf Coast. Investors are concerned that U.S. tariffs will cause a recession in both countries and potentially weaken the broader global economy. This would hurt demand for CN’s services.
Near-term volatility should be expected, but contrarian investors might want to start nibbling on the stock. A trade deal between Canada and the U.S. will eventually get done, and the economy appears to be holding up better than some analysts expected. Once there is clarity on trade terms, CN could pick up a new tailwind.
Management appears to be upbeat, expecting adjusted diluted earnings per share (EPS) to increase by 10% to 15% in 2025 compared to last year. The board raised the dividend by 5% for 2025, marking the 29th consecutive annual increase. CN is also buying back up to 20 million shares under the current stock repurchase plan.
Investors who buy CN at the current level can get a dividend yield of 2.5%.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) trades near $43.50 per share at the time of writing. The stock trended higher over the past three months after dipping below $35 in April, but is still well off the $55 it reached last year.
Falling oil prices over the past 12 months put pressure on the stock. Weak demand in China, concerns about the impacts of tariffs on the U.S. and Chinese economies, and rising supply have all been headwinds for oil prices. Geopolitical risks led to a spike in oil prices in recent weeks, but that didn’t last long.
Looking ahead, investors should anticipate ongoing volatility until there is more clarity on trade deals and their impact on economic conditions. That being said, CNRL might be oversold at this point. The company delivered solid Q1 2025 results. Record production and contributions from a US$6.5 billion acquisition are helping the company navigate lower oil prices. CNRL says its West Texas Intermediate (WTI) breakeven price is roughly US$40 to US$45 per barrel. Even at the current WTI price near US$68 the company is very profitable.
The energy producer has extensive natural gas operations that help offset volatility in the oil market. New liquified natural gas (LNG) export facilities in Canada will give CNRL access to international buyers in the next few years.
The board increased the dividend in each of the past 25 years. Investors who buy CNQ stock at the current price can get a dividend yield of 5.4%.
The bottom line
CN and CNRL are industry leaders paying good dividends that should continue to grow. If you have some RRSP cash to put to work, these stocks deserve to be on your radar.
