When markets start to slide, it’s easy to want to run for cover. But some of the best deals happen during those uneasy moments. And on the TSX today, there are still great companies trading at steep discounts, offering long-term investors a chance to scoop up quality names with attractive dividends.
Let’s look at three value stocks worth buying when everyone else is hitting the sell button: Suncor Energy (TSX:SU), Bank of Nova Scotia (TSX:BNS), and BCE (TSX:BCE).
Suncor
Suncor Energy has been stuck in the bargain bin for a while. Even though oil prices remain strong by historical standards and the dividend stock generates loads of free cash flow, the stock is still trading at 11 times forward earnings. The market seems to be punishing Suncor for its past operational stumbles, but things are looking better.
In its first-quarter (Q1) 2025 earnings, Suncor reported adjusted funds from operations of $3 billion, up from $3.2 billion the year before. The dividend stock also returned $15 billion to shareholders and reported its highest first-quarter upstream production in company history. With increased refinery output, improved safety performance, and a firm focus on returning capital to shareholders, this is one oil stock that doesn’t look expensive right now.
Of course, energy is cyclical. But Suncor has one big advantage: it operates integrated assets, meaning it makes money across the entire oil value chain. That provides some insulation when oil prices bounce around. Add in a large buyback program and a stronger balance sheet, and investors get a 4.3% yielding dividend stock that could surprise to the upside if crude holds up.
Scotiabank
Next, Bank of Nova Scotia. If you want value in Canadian banks, this one is about as beaten-up as they come. Shares are still well below pandemic levels, and investors haven’t been thrilled with the dividend stock’s international exposure or its slower profit growth. But BNS has been quietly laying the groundwork for a turnaround.
In its Q2 2025 results, the bank reported net income of $2.03 billion, compared to $2.09 billion a year ago. While it was a fall, the dividend stock remains strong. The company continues to invest in growth within Latin America, with a focus on Mexico, while also prioritizing strategic investments amid an uncertain macroeconomic outlook.
More importantly, the dividend stock trades at 16 times earnings and offers a dividend yield of 5.7%, which is extremely rare for a Big Five bank. The bank has also paid and raised its dividend for decades, giving investors a reliable stream of income even in rough patches. While it may not outperform in the short term, it’s a patient investor’s dream: undervalued, underloved, and still highly profitable.
BCE
Finally, there’s BCE, Canada’s telecom giant. BCE stock has fallen nearly 55% from its 2022 highs as rising interest rates pressured its capital-intensive business model. But this is still a dominant player with over 10 million wireless subscribers and a huge media presence. In fact, Q1 2025 earnings showed a slight dip in operating revenue to $5.9 billion, down just 1.3% from the year before. Plus, it still posted over $798 million in free cash flow, a major increase from the $85 million reported last year. BCE also reaffirmed its 2025 guidance, pending its divestiture of Northwestel and excluding its Ziply Fiber acquisition.
Investors should note that BCE recently slashed its capital spending and announced 4,800 job cuts to preserve profitability. While that’s a tough move, it reflects a shift toward efficiency and stronger free cash flow generation. At current levels, BCE offers a dividend yield over 5.3%, coming after slicing its dividend in two. With cost-cutting underway and its network investments tapering off, BCE could see improving margins heading into the latter half of 2025. Even if share price growth is muted, the dividend alone offers compelling value for long-term investors.
Bottom line
All three dividend stocks have something in common: each has been through tough times before and has come out stronger. Right now, each is priced well below historical averages, offers a high yield, and remains profitable despite broader market pessimism.
Buying during a downturn always feels uncomfortable. But that discomfort is often the price of getting a deal. These three stocks may not skyrocket tomorrow, but they offer a compelling mix of value, income, and resilience for Canadian investors willing to go against the herd. When everyone else is selling, sometimes the best move is to start buying.
