The pullback in the share prices of some TSX industry leaders is giving self-directed Registered Retirement Savings Plan (RRSP) investors a chance to pick up decent dividend yields while setting up the portfolio for attractive potential long-term gains on a rebound.
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TC Energy
TC Energy (TSX:TRP) trades below $88 per share at the time of writing compared to the recent high around $100. The stock is still up more than 25% in the past year, but the dip has driven the dividend yield back to 4%.
TC Energy company operates over 93,000 km of natural gas pipelines and 650 billion cubic feet of natural gas storage in Canada, the United States, and Mexico while also being an electricity producer.
Positive trends in the natural gas sector bode well for the firm in the next few years. The company expects 2025 to 2035 demand growth in natural gas to be approximately 51 billion cubic feet per day. TC Energy’s extensive pipeline network moves 30% of the natural gas used across North America and is in close proximity to many AI data centre projects. New gas-fired power generation facilities are being built to provide electricity to hundreds of these new data centres.
Global demand trends
Global demand for Canadian natural gas is also rising as countries seek out reliable supplies from stable and safe producers. TC Energy has completed its Coastal GasLink pipeline connecting Canadian producers to the new LNG Canada liquified natural gas export facility. The company is already evaluating plans to double the capacity of the pipeline.
Canada’s goal to become an energy superpower could lead to additional natural gas pipelines and export facilities being built. TC Energy’s expertise in natural gas transmission would make it a good candidate to participate in any major projects.
The company has an ongoing annual capital program of about $6 billion that should support dividend increases. TD Energy raised the dividend in each of the past 26 years. In the Q2 2026 earnings report, TC Energy said it expects 2026 comparable earnings before interest, taxes, depreciation, and amortization (EBITDA) to be at the high end of its guidance.
BCE
BCE (TSX:BCE) cut its dividend by more than 50% last year. The company was forced to make the move to preserve cash flow as it works to balance debt reduction with capital expenditures on new growth initiatives.
As part of the turnaround plan, BCE purchased a fibre internet services provider in the United States to tap into strong growth potential in the American market. At the same time, BCE is building sovereign data facilities to meet demand from Canadian government and corporate clients.
In the legacy businesses, BCE is streamlining operations to get costs in line with revenues, particularly in the media group. Challenges remain for the radio and television assets amid lower ad spending, but digital revenue is on an upward trend, driven by strength in the Crave streaming business.
Lower immigration, higher borrowing costs, and price wars will likely be headwinds over the near term for the core mobile and wireline operations, but the share price likely reflects those conditions at this point and the reduced dividend payment should be safe.
This is a contrarian pick that will require patience, but investors who buy BCE at the current price can get a dividend yield of 5.4% that pays you well to wait for the recovery.
The bottom line
TC Energy and BCE offer attractive dividend yields and a shot at decent upside over the long run. If you have some RRSP cash to put to work, these stocks deserve to be on your radar.
