TSX60 at a Discount: The Blue‑Chip Bargains I’d Grab Today

Blue-chip companies are the biggest and best, and yet these three remain undervalued on the TSX today.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published September 17, 2025 4:30 pm EDT

| More on: BNSMGNTR

Key Points

Scotiabank looks inexpensive with strong capital and a near 5% yield, offering emerging-markets upside alongside higher risk from its international exposure.
Magna is rebounding, trading at 8x earnings with a 4.1% dividend, better margins, strong cash flow, and buybacks, though auto cycles and trade risks persist.
Nutrien looks cheap at 11.3x earnings with record potash volumes, solid nitrogen trends, and a 3.8% yield, but fertilizer markets remain cyclical and volatile.

Canadian investors looking for cheap stocks might turn their attention immediately towards riskier penny stocks. Those that trade under $5 per share. Yet these are risky for a reason, and unless you’re an expert with real skin in the game, I would stay further away from these stocks.

Instead, there are TSX60 stocks that any investor can grab hold of and hold for the long term. That’s why today, we’re going to look at stable TSX60 stocks, such as Bank of Nova Scotia (TSX:BNS), Magna International (TSX:MG), and Nutrien (TSX:NTR).

Woman checking her computer and holding coffee cup — Source: Getty Images

Scotiabank

First up, we have BNS, better known as Scotiabank. This dividend stock looks like a major bargain at writing, trading at 11.2 times forward earnings. This is lower than many of its banking peers, while still offering up a dividend near 5%. Its common equity tier-one ratio is also at 13.3%, giving the dividend stock a strong balance sheet while still continuing buybacks and growing the dividend.

All this is par for the course, given that BNS historically has lagged behind its peers. That’s mainly because of its exposure to international markets, particularly in Latin America. Yet for investors looking for gains from emerging markets with a stable dividend, this stock could bring in $343 from a $7,000 investment.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
BNS	$88.98	78	$4.40	$343	Quarterly	$6,940

MG

Next up, we have MG, a dividend stock that’s been through the ringer, but is making a great comeback. Despite softness in the industry, MG recently raised its 2025 guidance, executing well on its cost controls. It now trades at just eight times forward earnings, quite cheap for a global auto supplier. Now, auto production can be cyclical, and tariffs and trade policy keep investors on edge. Yet MG has proven to be far more efficient in providing durability.

Its dividend now sits at about 4.1%, with a conservative 45% payout ratio. These points have been helped along by margins ticking higher to 5.5%, with earnings per share (EPS) also beating expectations. Cash flow remains strong, and the dividend stock continues to buy back shares and increase dividends. Even now, a $7,000 investment gets you $294 each year!

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
MG	$63.65	110	$2.67	$294	Quarterly	$7,002

NTR

Finally, we have NTR, a fertilizer stock that’s now looking like a major bargain. After soaring to about $140 per share back in 2022, shares remain depressed. Now, it trades at 11.3 times forward earnings, despite upgrades in guidance. This includes earnings before interest, taxes, depreciation, and amortization (EBITDA), and strong potash and nitrogen fundamentals. In fact, it recently reported record potash volumes, strong nitrogen rates, and freed up capital for growth.

It’s important to note that fertilizer is cyclical and sensitive to energy input costs and weather as well. Volatility is built in, so income isn’t always as strong as, say, utilities. However, we still need fertilizer, and its significant earnings power isn’t reflected in the current share price. The dividend is now at 3.8%, with buybacks continuing on top of that passive income. As of writing, a $7,000 investment could bring in $267 in dividends each year!

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
NTR	$77.96	89	$3.00	$267	Quarterly	$6,939

Bottom line

These three blue-chip dividend stocks are primed for a comeback, remaining top buys for investors who have a tiny bit of patience. Meanwhile, each offers major dividends. Together, you’ll get a classic Canadian bank, a valuable auto producer, and a resource play — all of which remain major bargains on the TSX today.