A TSX Dividend Stock Down 15% From Highs to Buy for Lifetime Income

Teck Resources is still well off its highs, but its cash flow, copper focus, and shareholder returns could make today’s dip a rare dividend opportunity.

Amy Legate-Wolfe

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. Before joining Motley Fool Canada, she 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. 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 December 30, 2025 8:00 pm EST

| More on: TECK.B

Key Points

A stock can fall on fear, not fundamentals, so focus on cash flow, balance sheet strength, and whether the dividend still looks safe.
Teck’s pullback reflects commodity-cycle nerves and transition uncertainty
Teck is simplifying into a copper-led story after exiting gold and coal

A dividend stock trading well below its five-year highs can feel uncomfortable, but that discomfort is often where opportunity lives. Share prices move faster than businesses, especially in sectors tied to commodities or economic cycles. When a dividend stock still generates cash, pays a dividend, and owns valuable long-life assets, a lower share price can simply mean the market is pricing in fear rather than permanent damage. For long-term investors, that disconnect can create a chance to buy income and future upside at the same time, as long as the balance sheet and payout remain intact.

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TECK

Teck Resources (TSX:TECK.B) is a clear example of a dividend stock that the market has cooled on despite its underlying strength. Teck is one of Canada’s largest diversified miners, with exposure to copper, zinc, steelmaking coal, and energy. After a strong run in prior years, the dividend stock has pulled back as investors worried about global growth, China demand, and volatile commodity prices. Over the past year, however, TECK.B traded sideways to down, then climbed back upwards.

That weaker performance had more to do with sentiment than with collapse. Mining stocks often move ahead of the cycle and then retreat when growth expectations soften. Teck has also been navigating a strategic transition after selling its steelmaking coal business, which created short-term uncertainty about capital allocation and future earnings mix. Markets tend to dislike uncertainty, even when it comes with long-term benefits. As a result, the share price has reflected caution rather than confidence.

Into earnings

Looking at recent earnings helps explain why the story is not broken. Teck continues to generate meaningful cash flow, supported by its zinc operations and its growing copper exposure. Earnings fluctuated quarter to quarter, which is normal for a miner, but the dividend stock remained profitable and disciplined. Importantly for income investors, Teck maintained its base dividend and used excess cash for special dividends and share buybacks when conditions allowed.

From a valuation perspective, the pullback made Teck more interesting. The dividend stock trades at a modest multiple relative to its normalized earnings power, especially when copper demand over the next decade is considered. Copper is central to electrification, renewable energy, data centres, and electric vehicles, and Teck owns high-quality copper assets with long reserve lives. When commodity prices eventually improve, earnings can rebound quickly, and miners with strong assets tend to re-rate just as fast.

Looking ahead

While the dividend stock is still down from its five-year highs, there’s room for more movement. Early in the year, Teck fully exited gold by selling its remaining minority stake in the Canadian Malartic Complex to Agnico Eagle. That move officially closed the chapter on the Yamana deal. It removed non-core exposure and reinforced Teck’s plan to be a base-metals company, not a diversified miner. Investors largely saw this as clean and disciplined.

Teck also spent 2025 deploying capital from the coal spin-off and asset sales. With Elk Valley Resources separated, Teck used proceeds to strengthen its balance sheet, return capital to shareholders, and fund copper growth. The market watched closely to see how much cash went to buybacks versus reinvestment. Capital discipline became a key test. By the end of 2025, the takeaway for investors was clear. Teck no longer tried to be everything. It exited gold, moved past coal, and leaned into copper with conviction. And now, it has the cash on hand to support its dividend.

Bottom line

The takeaway is simple. A dividend stock being down does not automatically make it risky, just as a stock being up does not make it safe. Teck’s recent weakness reflects the cycle, not a collapse in its business. And right now, it looks like it’s moving towards more strength. Yet even now, here’s what investors can bring in through its dividend alone with a $7,000 investment.