Self-directed Registered Retirement Financial savings Plan (RRSP) buyers are trying to find prime TSX shares that pay good dividends and have lengthy monitor information of distribution progress. The TSX is close to a report excessive proper now, however buyers who missed the rally this 12 months can nonetheless discover high quality dividend shares buying and selling at affordable costs.

Financial institution of Nova Scotia

Financial institution of Nova Scotia (TSX:BNS) trades close to $71 per share on the time of writing. Buyers who purchased the inventory a 12 months in the past are already up about 18%, however extra positive aspects might be on the best way as rates of interest decline in Canada and the USA.

Financial institution of Nova Scotia traded as excessive as $93 in early 2022 earlier than the Financial institution of Canada began to aggressively elevate rates of interest to chill off an overheated financial system and get inflation beneath management. Rising rates of interest are usually good for banks in that they’ll increase web curiosity margins. The pace and dimension of the hikes, nonetheless, have put debtors with an excessive amount of debt in a tough state of affairs. As curiosity expenses soared, many companies and households have struggled to cowl their funds. This led to a pointy improve in provisions for credit score losses at Financial institution of Nova Scotia. PCL got here in at $1.05 billion in fiscal Q3 2024 in comparison with $819 million in the identical interval final 12 months.

Latest cuts to rates of interest by the central financial institution will ease stress on debtors. As such, the PCL ought to begin to decline within the coming quarters.

Financial institution of Nova Scotia is shifting its progress spending from South America to the USA, Canada, and Mexico. The financial institution not too long ago introduced a US$2.8 billion deal to take a 14.9% stake in KeyCorp, an American regional financial institution, as a part of the brand new technique. Buyers that prevented Financial institution of Nova Scotia prior to now as a result of South American focus may heat as much as the brand new plan.

Dangers nonetheless stay for financial institution shares. Falling rates of interest ought to assist troubled debtors, however PCL may nonetheless go increased if the financial system hits a tough patch and unemployment rises.

That being mentioned, Financial institution of Nova Scotia stays very worthwhile; web revenue for fiscal Q3 was $1.9 billion. The financial institution additionally has a stable capital cushion to experience out any extra turbulence. Buyers who purchase BNS inventory on the present worth can get a 6% dividend yield.

Enbridge

Enbridge (TSX:ENB) is up 26% prior to now 12 months. The inventory presently trades close to $56.50, which isn’t too far off the 2022 excessive round $59.

Administration shifted progress spending lately to focus extra on exports, pure fuel utilities, and renewable vitality. The corporate now owns an oil export terminal in Texas, has a stake within the Woodfibre liquified pure fuel (LNG) export facility being in-built British Columbia, and not too long ago accomplished its acquisition of three pure fuel utilities in the USA.

Enbridge can also be engaged on a $24 billion capital program to spice up progress. Income and money movement from the brand new belongings ought to assist regular dividend progress.

Buyers who purchase ENB inventory on the present degree can get a dividend yield of 6.5%. The inventory has had a great run, so a near-term pullback wouldn’t be a shock, however any weak point needs to be considered as a possibility so as to add to the place.

The underside line on prime RRSP shares

Financial institution of Nova Scotia and Enbridge pay engaging dividends that ought to proceed to develop. You probably have some money to place to work, these shares should be in your RRSP radar.