Contrarian buyers are trying to find undervalued dividend shares that might ship engaging whole returns over the subsequent few years. The TSX trades close to its file excessive, however some high Canadian dividend shares are down in current months, providing some respectable potential upside.

Canadian Pure Sources

Canadian Pure Sources (TSX:CNQ) is down about 15% from the 2024 peak attributable to a pullback in vitality costs.

The corporate owns and operates a variety of manufacturing property, together with oil sands, typical heavy oil, typical gentle oil, pure fuel, and pure fuel liquids. CNRL tends to personal most of its operations outright or is almost all associate. This provides administration the flexibleness to maneuver capital across the portfolio shortly to reap the benefits of useful adjustments in commodity costs.

CNRL has a robust steadiness sheet and is a huge within the Canadian vitality patch with its present market capitalization close to $100 billion. This provides administration the monetary firepower to make giant acquisitions that only some opponents would have the ability to digest. For instance, CNRL lately introduced a US$6.5 billion deal to purchase property from Chevron Canada. As soon as the deal is accomplished, CNRL expects to see a pleasant enhance to money circulation. The acquisition will increase the corporate’s stake within the Athabasca Oil Sands Challenge (AOSP) to 90%. The opposite a part of the deal expands CNRL’s development potential within the Duvernay shale play in Alberta with gentle oil and pure fuel liquids manufacturing and untapped sources.

The board lately elevated the dividend by 7%. CNRL has given buyers a elevate for 25 consecutive years. On the present share value, the inventory supplies a dividend yield of 4.8%.

TD Financial institution

TD Financial institution (TSX:TD) has had a tough run over the previous two years. The corporate was lately hit with a positive of roughly US$3 billion for not doing sufficient to determine and stop cash laundering within the American operations. TD constructed a big U.S. retail banking enterprise over the previous twenty years via acquisitions of regional banks from Maine down the east coast to Florida. Along with the positive, U.S. regulators have positioned an asset cap on the American enterprise. This implies TD’s development ambitions within the American market are on maintain for the subsequent few years.

TD is bringing in a brand new chief government officer in 2025 to show the web page on the difficulty. It’ll take time for the brand new administration crew to hammer out a brand new development technique, however TD stays very worthwhile, maintains a robust capital place, and may finally get again on observe within the American market.

Within the meantime, buyers can choose up a stable 5.25% dividend yield. Shopping for TD on huge pullbacks has traditionally confirmed to be a savvy transfer for affected person buyers.

The underside line on high TSX dividend shares

Canadian Pure Sources and TD Financial institution pay engaging dividends that ought to proceed to develop. When you’ve got some money to place to work in a self-directed TFSA or RRSP portfolio concentrating on dividends and long-term whole returns, these shares need to be in your radar.