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TSX Reaches All-Time High: Discover 2 Undervalued Canadian Dividend Stocks

The Toronto Stock Exchange has reached a record peak, recovering from the initial impact of U.S. tariffs. Those investors who didn’t catch the upturn are now pondering which leading Canadian equities could still be undervalued and worthwhile to purchase in a self-managed portfolio.

Tax-Free Savings Account

(TFSA) or

Registered Retirement Savings Plan

(RRSP) focused on dividends.

Canadian Natural Resources

Canadian Natural Resources

(

TSX:CNQ

It has decreased by 18% in the last year. This decline is primarily attributed to dropping oil prices.

West Texas Intermediate (WTI) crude oil currently trades around US$62 per barrel, down from US$80 this time last year. The decrease in 2024 has largely been attributed to sluggish demand from China along with increased output from non-OPEC nations such as the U.S. and Canada. As we move into 2025, the ongoing drop in oil prices—reaching as low as US$57 recently—is mainly because of concerns about an upcoming recession in the U.S. and additional economic setbacks in China stemming from trade tariffs.

In the short term, market fluctuations are anticipated; however, opportunistic investors might capitalize on the downturn by purchasing CNQ shares when they fall out of favor. The firm indicates that its break-even point for West Texas Intermediate (WTI) stands at approximately $40 to $45 per barrel. Additionally, CNRL significantly contributes as a natural gas producer. Current prices for natural gas exceed those from much of last year, thereby mitigating some of the reduced margins experienced within the oil sector. Moreover, CNRL aims to enhance revenues through increased production of both crude oil and natural gas.

In 2024, the board doubled the dividend on two occasions and boosted it once in 2025, maintaining an unbroken record of annual growth for 25 consecutive years. Those purchasing shares of CNQ at present prices will enjoy a dividend yield of 5.5%.

Bank of Nova Scotia

Bank of Nova Scotia

(

TSX:BNS

The value has been increasing over the last month, however, the stock remains approximately 7% lower than at the beginning of 2025.

The bank is undergoing a strategic shift aimed at reallocating more of its capital investments towards the United States and Canada over the coming years, with reduced emphasis on Latin America. This change comes after decades of significant spending under former management to establish a substantial footprint across this area.

Last year, Bank of Nova Scotia invested US$2.8 billion to obtain a 14.9% share in KeyCorp, an American regional bank. In early this year, the company divested its activities in Colombia, Panama, and Costa Rica, resulting in approximately a $1.3 billion write-down from that transaction. These actions could explain why the stock experienced significant declines during the first quarter. Additionally, concerns over a potential recession sparked by U.S. tariffs imposed on Canada and Mexico—regions where Scotiabank operates extensively—further exacerbated these issues.

The turnaround program may require considerable time before yielding tangible outcomes. Further divestitures within Latin America could transpire, hence investors should remain vigilant regarding potential deal valuations. Regardless of the ambiguity surrounding this situation, the equity might still be undervalued.

The Bank of Nova Scotia continues to be highly profitable and maintains a strong capital base for making strategic investments in both the United States and Canada. Purchasing BNS shares at their present price allows investors to earn a dividend yield of 5.9%.

The key takeaway for leading TSX dividend stocks at the forefront

CNRL and Scotiabank offer solid dividend payouts that are likely to increase further. Should you find yourself with available funds, consider adding these stocks to your watchlist.

The post

TSX All-Time High: 2 Canadian Dividend Stocks That Remain Appealing

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The Motley Fool endorses Bank of Nova Scotia and Canadian Natural Resources. The Motley Fool has a

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. Fool contributor Andrew Walker does not own shares in any of the companies mentioned.