Retirees and other income investors are searching for opportunities to buy dividend stocks at fair values for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) trades near $60 per share at the time of writing compared to more than $70 at the 2026 high.
The dip in the share price gives investors a chance to pick up a solid 4% dividend yield from a stock that has increased the dividend in each of the past 26 years.
CNRL grows through a combination of strategic acquisitions and internal development investments. The company has the size and balance sheet strength to buy large Canadian assets when the sector is under pressure. Upswings in energy prices, as we have seen in the oil market in 2026, then drive higher returns on the added production. CNRL can also afford to expand output by tapping its vast reserves of both oil and natural gas. The company has a very high success rate with its drilling program.
Oil prices are creeping back up as the dispute between the United States and Iran further restricts oil transport through the Strait of Hormuz. If attacks continue and the war expands across the region, the price of oil could potentially spike back above US$100 per barrel. This would drive up the share prices of major oil producers.
Even if a sustained ceasefire is put in place and oil prices slide back to pre-war levels, CNRL should still be a solid pick for the long term. Export capacity for Canadian oil and natural gas increased in the past couple of years, and more pipelines and export facilities are likely on the way.
BCE
BCE (TSX:BCE) cut its dividend last year, The stock’s recent dip below $30 per share has extended a slide that began in 2022 when the share price was above $70. The dividend reduction and the decline in the stock have been painful for long-term BCE shareholders. In the near term, the company continues to face some headwinds.
Declining advertising revenue in traditional TV and radio assets puts pressure on the media division. A drop in the number of newcomers to Canada, particularly students, has reduced a source of product and subscription sales for mobile phones and internet services.
On the upside, the price wars that hit margins over the past couple of years have moderated, and BCE has diversified its revenue stream by expanding into the United States through a major acquisition of an internet services provider. The company is also investing in sovereign data centres and AI services to meet demand from Canadian businesses and government agencies that want to keep their data on Canadian soil.
While most of the bad news should already be priced into the share price, investors looking for big gains in the stock will likely have to be patient. This makes BCE a contrarian pick right now, but the current dividend payout should be safe. Investors who buy BCE stock at the current price can get a dividend yield of 5.7%.
The bottom line
CNRL and BCE pay attractive dividends and now trade at discounted prices. If you have some cash to put to work in a portfolio targeting dividend income, these stocks deserve to be on your radar.
