Three TSX Dividend Stocks Offer Bargain Entry Points for Long-Term Investors

The market had turned brutal by mid-October 2022, and that brutality was creating an opening for patient investors. Three established names on the Toronto Stock Exchange—TD Bank, TC Energy, and Suncor—had all been hammered down to prices that looked, on paper at least, like genuine bargains. The question wasn't whether these were good companies. It was whether the selling had gone too far.

TD Bank had fallen to just under $86 per share, down from $109 earlier that year. The bank had raised its dividend by 13 percent for the fiscal year and showed no signs of stopping. Since 1995, TD had increased its payout at a compound annual rate of roughly 11 percent—the kind of consistency that turns a modest yield into real money over decades. At current prices, the stock offered a 4 percent yield. More importantly, the bank was making aggressive moves south of the border. It had committed $13.4 billion to acquire First Horizon, a retail bank that would vault TD into the top six of the American market. A separate $1.3 billion deal for Cowen, an investment bank, was meant to strengthen its capital markets arm. These weren't defensive moves. They were bets on growth.

TC Energy operated differently from most energy stocks. The company didn't pump oil or gas from the ground. Instead, it owned and operated the pipes and storage facilities that moved those commodities from production sites to refineries, utilities, and liquified natural gas terminals. For this service, it collected fees. The structure meant that wild swings in commodity prices barely touched the company's revenue or cash flow. TC Energy's real business was natural gas transmission and storage, and demand for that was rising across North America. The company had infrastructure already in place or under construction to capture the anticipated surge in liquified natural gas exports to international buyers. The stock had fallen to $57.50 from $74 in June, and at that depressed price it yielded 6.25 percent.

Suncor had endured a harder road. The company had slashed its dividend by half during the pandemic while competitors held steady. Since then, management had clawed back those cuts and pushed the payout above pre-pandemic levels. The stock was trading at $44 per share—roughly where it had sat before COVID arrived. Fuel demand had recovered to 2019 levels, and oil was trading around $86 per barrel compared to $60 in early 2020. The math suggested the stock was undervalued. New management was selling non-core assets to unlock value and paying down debt at a meaningful pace, which should free up cash for future dividend increases. At current prices, Suncor offered a 4.25 percent yield.

All three stocks shared a common thread: they were mature, dividend-paying businesses that had been caught in a broad market selloff. Whether you held them in a Tax-Free Savings Account or a Registered Retirement Savings Plan, the logic was the same. Buy when others were selling, hold through the recovery, and let the dividends compound. The market would eventually remember that these companies had real assets, real cash flow, and real reasons to exist. When it did, the entry prices available in October would look like a gift.