Canadian buyers who missed the rally within the TSX this 12 months can nonetheless discover shares that pay beneficiant dividends for a self-directed Tax-Free Financial savings Account (TFSA) portfolio concentrating on passive earnings and complete returns.

Financial institution of Nova Scotia

Financial institution of Nova Scotia (TSX:BNS) trades for near $72 per share on the time of writing. The inventory is up about 20% up to now 12 months, however continues to be beneath the $93 it reached in early 2022.

The inventory’s efficiency in recent times dissatisfied buyers. Financial institution of Nova Scotia truly trades barely decrease than it did 5 years in the past. That is in distinction to most of its Canadian friends which have delivered positive aspects of 5% to 95% over the identical timeframe.

Wanting forward, higher days could possibly be on the best way. A brand new CEO took management in 2023 and is already implementing vital adjustments. Financial institution of Nova Scotia trimmed workers final 12 months to cut back bills and is shifting its progress investments to alternatives in the USA, Canada, and Mexico. That is in distinction to the concentrate on South America the place Financial institution of Nova Scotia beforehand spent billions of {dollars} on acquisitions in Colombia, Chile, and Peru. The operations in South America maintain good progress potential and carried out nicely within the final quarter, regardless of receiving lowered capital. These companies may stay within the portfolio, or could possibly be offered with proceeds allotted to different alternatives within the North American markets.

Traders should be affected person through the transition. Within the meantime, nonetheless, you receives a commission an honest 5.9% dividend yield to attend.

Telus

Telus (TSX:T) is arguably a contrarian choose proper now. Excessive rates of interest are driving up debt bills whereas value wars, regulatory uncertainty, and challenges at a subsidiary are placing stress on income. For this reason Telus trades close to $22 right this moment in comparison with $34 in 2022.

At this level, the worst of the ache ought to be within the rearview mirror. Falling rates of interest in Canada will assist decrease borrowing bills for Telus. The corporate makes use of debt to fund a part of the big capital program required to increase and improve communications networks. On the operational facet, Telus lowered workers by roughly 6,000 positions up to now 12 months in a transfer that helps reduce prices. Difficulties at its Telus Digital subsidiary ought to stabilize subsequent 12 months and value battles may additionally subside in 2025.

Telus nonetheless expects to ship larger adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) in 2024 than it did in 2023. Primarily based on this outlook and the prospect of a lot decrease rates of interest, the inventory could be undervalued proper now.

Traders who purchase Telus inventory on the present stage can get a dividend yield of near 7%. Telus has elevated the dividend yearly for greater than 20 years.

The underside line on high-yield TSX shares

Financial institution of Nova Scotia and Telus are good examples of TSX dividend shares that also look low cost and provide excessive dividend yields. You probably have some money to place to work these shares should be in your radar.