10 Years From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks

Investors looking for value-conscious picks within the world of dividend stocks may want to consider these two top Canadian gems.

Key Points
  • Finished Suncor, a top Canadian oil producer, is recommended for its low-cost operation in the oil sands, wide margins, and attractive valuation featuring a 3.5% dividend yield and a price-earnings ratio of around 16.
  • Toronto-Dominion Bank is highlighted as a top value pick due to its operational efficiency, technology investments, 3.3% dividend yield, and appealing valuation of 11-times earnings, offering stable returns despite recent rallies.

Long-term buy-and-hold investing is easier said than done. World-class investing icons such as Warren Buffett and others have put forward a road map for us all to follow. But I have to say, implementing such a strategy personally has been difficult.

I have a few holdings in my portfolio that are more than five years old, but most of these are index funds. Holding individual stocks for an extended period of time can be tricky, as it’s tempting to sell high-flyers after a prolonged rally, and it can be easy to give up on one’s losers (either for tax harvesting purposes or other reasons).

That said, for those looking to pick individual stocks and own a few top-tier blue-chip value stocks, here are two top ideas on my list right now.

dividend growth for passive income

Source: Getty Images

Suncor

One of Canada’s top oil producers, Suncor (TSX: SU) has been a top-performing stock over the course of the past year. That said, I’m not suggesting investors consider this name on the basis of momentum or past performance.

The reason why Suncor has surged relative to many of its western Canadian peers is the fact that this oil and gas giant has one of the lowest costs per barrel in the oil sands. That operational advantage has led to wider margins, better balance sheet capacity, and the ability to return value to shareholders over time.

With a 3.5% dividend yield and a price-earnings ratio around 16 times (far less than the index average), this is a top value and dividend stock I think could come into vogue as investors looking for energy exposure gravitate toward the largest and highest-quality blue chip names in this sector.

Toronto-Dominion Bank

Among all top Canadian banks, Toronto-Dominion Bank (TSX: TD) is perhaps my top value pick at this point in time.

That’s saying something, considering the stock chart above. Indeed, TD stock has been on a tear over the course of 2025, and that’s a trend I think can continue for some time.

Much of this has to do with the company’s industry-leading operational efficiency. Driven by solid technology investments in recent years, TD has found a way to reduce headcount while also seeing traffic increase within its impressive retail banking footprint. And with one of the most geographically diversified operating models of any Canadian bank, and TD’s upside tied to both a steepening yield curve (meaning higher net interest margins), as well as more favourable macro conditions, TD could see much more stable returns over time.

I’m not expecting we’ll see the sort of flat return investors saw between early 2022 and mid-2025. But even if we do, TD’s 3.3% dividend yield and valuation of just 11 times earnings is hard to beat. This is a top dividend stock with a valuation I think is too cheap to ignore right now, even after its recent rally.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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