Boost Your Passive Income with These 2 Cheap Dividend Stocks - Kalkine Media

November 19, 2023 12:00 AM EST | By Team Kalkine Media
Follow us on Google News:

The recent pullback in the share prices of leading TSX dividend stocks presents an opportunity for retirees and income-focused investors to secure high yields from strong dividend payers. This market dip allows investors to not only enjoy attractive dividend income but also positions their portfolios for potential capital gains as the market rebounds.

Bank of Nova Scotia (TSX: BNS)

As of the current writing, Bank of Nova Scotia trades near $60 per share, down from $74 in February and a peak of $93 in 2022. Despite sector headwinds, the bank raised its dividend earlier this year. Concerns among investors revolve around the possibility of prolonged high-interest rates as the Bank of Canada addresses inflation. Economists suggest that rate hikes take up to 18 months to impact the economy, and if not managed correctly, this could lead to increased mortgage costs and living expenses, potentially causing loan defaults and bankruptcies.

However, many economists anticipate a short and mild recession in 2024 or 2025, making BNS stock appear oversold at the current level. Investors can capitalize on a 7% dividend yield by purchasing Bank of Nova Scotia shares.

TC Energy (TSX: TRP)

TC Energy owns and operates an extensive network of natural gas pipelines, storage capacity, oil pipelines, and power-generation facilities. The company plans to spin off its liquid pipeline assets and has been selling stakes in non-core gas assets to strengthen its balance sheet. Despite challenges faced during the year, TC Energy's assets are performing well, and management expects planned annual dividend increases of 3-5%.

Currently trading near $50 per share, down from a high of $74 last year, TC Energy offers an appealing 7.4% dividend yield for investors looking to benefit from reliable income and potential future growth.

The Bottom Line on Top Stocks for Passive Income

Bank of Nova Scotia and TC Energy, with their attractive dividends and growth potential, present a compelling opportunity for investors seeking passive income. The recent market downturn makes these stocks appear undervalued, making them worthy additions to income-focused portfolios.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.



Top TSX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK