3 TSX Dividend Stocks That Still Look Cheap Right Now

Cheap dividend stocks don’t always look shiny. Some come with higher debt, unloved sectors, or slower growth. But that’s often where income investors find better yields and better upside. Right now, some TSX dividend stocks still trade at modest valuations as investors remain nervous about offices, energy prices, restaurants, and consumer spending. The trick is finding names where the payout still looks supported, the business still has a path forward, and the market may be pricing in too much gloom.

TNT

True North Commercial REIT (TSX: TNT.UN) looks cheap because office real estate still scares investors. Honestly, that’s fair. The office sector remains under pressure, and higher interest costs haven’t helped. But True North owns a portfolio of commercial properties across Canada, with a heavy focus on government and credit-rated tenants. That gives it a more defensive profile than the average office real estate investment trust (REIT). Its portfolio recently sat around 90% occupied, with roughly three-quarters of revenue tied to government or credit-related tenants.

In the fourth quarter of 2025, revenue rose 27.3% to $40.3 million, helped by $12.4 million in early lease-termination income from an Ottawa property. Adjusted funds from operations (AFFO) per unit more than doubled to $1.34 from $0.62 a year earlier, though results looked weaker if investors strip out that one-time income. Still, the valuation remains the main attraction. True North trades with a market cap near $120 million, a yield of around 8.2%. That monthly payout gives income investors steady cash flow while they wait for occupancy and rates to improve.

TPZ

Topaz Energy (TSX: TPZ) offers a different kind of dividend story. It doesn’t drill wells itself, but owns royalty interests and infrastructure assets tied to Western Canadian oil and gas production. That model can be attractive because Topaz Energy stock benefits from production growth without carrying the same capital burden as a traditional producer. It also gives investors exposure to energy prices, but with a cleaner and often steadier structure.

Net income for Topaz Energy stock in the fourth quarter climbed 64% year over year to $32.7 million, while cash flow reached $80.6 million. Royalty production averaged 23,399 barrels of oil equivalent per day (boe/d), up 15% from the year before. Topaz Energy stock paid a quarterly dividend of $0.34 per share, which is good for a yield of around 4.3%. Topaz Energy stock isn’t screaming cheap on a traditional earnings basis, with a market cap near $4.8 billion and a price-to-earnings (P/E) ratio around 38 times. But earnings don’t tell the whole story for a royalty business. The high free cash flow margin, low capital needs, and dividend-growth history make Topaz Energy stock look reasonably priced for investors who want energy income without owning a riskier producer outright.

SRV

SIR Royalty Income Fund (TSX: SRV.UN) collects royalties from restaurant brands under SIR Corp., including Jack Astor’s and Scaddabush. That makes it more sensitive to consumer spending than a utility or pipeline, but it also gives investors direct exposure to restaurant sales without operating the restaurants themselves.

In 2025, pooled revenue rose 10.7% to $282.2 million, while royalty income increased to $16.9 million. Same-store sales grew 2.8% for the year, and fourth-quarter pooled revenue jumped 17.4% to $73.1 million. The fund raised its monthly distribution by 5% to $0.105 per unit starting in January 2026. At a market cap near $131 million, a P/E ratio around 15.5 times, and a yield near 8%, it still looks inexpensive for income. The risk is obvious: restaurants feel the squeeze when consumers pull back, wages rise, or food costs climb, but the distribution and growth pipeline gives it a real case.

Bottom line

True North, Topaz, and SIR Royalty aren’t perfect. Cheap dividend stocks rarely are. Yet each offers a clear income angle, a valuation that still leaves room for upside, and a business model investors can understand. And all three can bring in a solid income using $7,000.

For those willing to accept some risk, these three dividend stocks still look worth watching right now.