2 Magnificent TSX Dividend Stocks Down 19% to Buy and Hold Forever

These two undervalued TSX dividend stocks trading below recent highs could offer steady returns for years to come.

Key Points
  • Smart investors always remain prepared for market pullbacks by buying reliable dividend stocks trading at a discount.
  • Brookfield Renewable (TSX:BEP.UN) is down 19% but is riding a wave of nuclear and hydro growth opportunities.
  • Pason Systems (TSX:PSI) offers strong dividends and growth, even after posting solid third-quarter results.

The TSX Composite Index has been charging ahead in 2025, with investors cheering falling interest rates and a stronger economic outlook. But as every experienced investor knows, a rally like this usually doesn’t last forever without a market pullback. That’s just how markets work. That’s why, even in the middle of a rising market, smart investors remain prepared for the next dip — not by sitting out or trying to time it, but by looking at reliable dividend stocks that are trading at a discount. You can hang on to such stocks that offer income and resilience, no matter what the market does next.

In this article, I’ll highlight two top TSX dividend stocks that are still down around 19% and could be smart long-term buys right now.

diversification and asset allocation are crucial investing concepts

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Pason Systems stock

First up is Pason Systems (TSX: PSI), an energy sector-focused company proving that you don’t need rising oil prices to keep growing. Based in Calgary, it mainly provides data and automation tools for oil and gas drilling rigs.

Despite the broader market rally, PSI stock is currently down nearly 19% from its 52-week high. As a result, it trades at $12.03 per share with a market cap just under $939 million. At this market price, the stock also offers an attractive 4.3% annualized dividend yield, paid quarterly.

Pason’s third-quarter revenue fell just 5% YoY (year over year) to $101 million due mainly to a drop in North American drilling activity. However, its technology continued to gain traction across drilling and completions. That’s why the company still managed to post a strong adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $38.5 million for the quarter, holding a solid margin of 38.1%.

Adding to the optimism, Pason’s completions segment posted a 17% YoY jump in revenue, even in a tough market, while its solar and energy storage business saw a 30% increase.

Pason has no debt, about $76 million in cash, and returned nearly $50 million to shareholders in the first nine months of 2025 through dividends and share buybacks. The company believes it can double its 2023 revenue within five to seven years, with the help of its continued focus on product innovation, artificial intelligence (AI)-driven demand, and growing adoption across completions and international markets. That long-term focus, paired with its reliable payouts, makes it a top TSX dividend stock worth holding through all market cycles.

Brookfield Renewable stock

Next, let’s look at Brookfield Renewable Partners (TSX: BEP.UN), a clean energy giant that’s building for the future while paying solid dividends today. The company operates one of the world’s largest renewable power portfolios.

At the time of writing, its stock was trading at $36.80 per share with a market cap of $11.3 billion. Currently, it offers a solid 5.4% dividend yield. Although the stock is up 9% in the last year, it’s still down nearly 20% from its 52-week high, giving long-term investors a better entry point.

In the latest quarter ended in September, Brookfield Renewable’s revenue climbed 8.6% YoY to US$1.6 billion. At the same time, its funds from operations surged 10% to US$302 million. Strong hydro performance in Canada and Colombia, combined with consistent contributions from its wind, solar, and storage businesses, powered these results.

With over US$4.7 billion in liquidity and US$27 billion in year-to-date financings, Brookfield is well funded to support future growth while continuing to pay dependable dividends. For investors looking for stability, yield, and global exposure to clean energy, this top TSX-listed dividend stock could be a great buy on the dip right now.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Pason Systems. The Motley Fool has a disclosure policy.

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