Opportunities in Top TSX Dividend Stocks for RRSP Portfolios - Kalkine Media

December 01, 2023 07:00 AM EST | By Team Kalkine Media
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The recent pullback in the share prices of prominent TSX dividend stocks is creating opportunities for investors managing self-directed Registered Retirement Savings Plan (RRSP) portfolios. Here's a closer look at two Canadian dividend stocks that are currently trading at discounted prices: 

  1. Bank of Nova Scotia (TSX:BNS):
  • Anticipated Growth Strategy Announcement: The bank is set to unveil a new growth strategy at the 2023 investor day on December 13. Acknowledging its recent underperformance, the new CEO aims to enhance shareholder returns through strategic initiatives. 
  • Operational Efficiency Measures: The CEO has initiated changes in executive positions and announced staff cuts of approximately 3% to enhance operational efficiency. These measures are part of a broader plan to make the bank more efficient. 
  • Recent Performance: Fiscal Q4 2023 results fell below analysts' expectations, leading to a 5% dip in BNS stock. Bargain hunters took advantage of the dip, and the shares are currently trading near $60, offering potential upside from the recent lows. 
  • Dividend Yield: Bank of Nova Scotia provides an attractive 7% dividend yield, making it an appealing choice for income-oriented investors. Despite recent challenges, the bank's dividend yield adds to its appeal. 
  1. TC Energy (TSX:TRP):
  • Capital Raising Initiatives: TC Energy has been actively engaged in capital-raising activities, including selling a stake in American assets for $5.3 billion. The planned spin-off of the pipelines business and potential monetization of Mexican and other Canadian assets are part of the company's strategy. 
  • Challenges with Coastal GasLink: The Coastal GasLink pipeline's cost overrun has impacted the company's balance sheet, but TC Energy remains optimistic about its overall asset portfolio's strong performance. 
  • Current Valuation: Trading close to $50, down from over $70 last year, TC Energy offers an opportunity for investors to enter at a discounted price. The stock provides a high dividend yield of 7.4%, and the company aims to increase the dividend by at least 3% annually over the medium term. 
  • Outlook: TC Energy's full-year 2023 results are expected to be at the top of its guidance, and 2024 appears promising, supported by the overall strength of its asset portfolio. 

Conclusion: 

For investors managing self-directed RRSP portfolios, Bank of Nova Scotia and TC Energy present compelling opportunities. The current share price levels, coupled with growth prospects and attractive dividend yields, make these stocks worth considering for a retirement-focused investment strategy. Thorough research and a long-term perspective are crucial factors in making well-informed investment decisions 


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