Kalkine Media - Canadian retirees and dividend investors seeking high-yield passive income are eyeing undervalued top TSX dividend stocks to bolster their portfolios. The recent pullback in share prices presents an opportunity for investors to capitalize on discounted prices and boost yields on their savings.
Enbridge (TSX:ENB) (TSX:ENB)
Enbridge (TSX:ENB) has seen its share price decline from its peak in 2022, offering investors a chance to acquire this dividend stalwart at a discounted price. The drop was primarily driven by concerns over rising interest rates, which impacted the broader market sentiment. However, Enbridge remains oversold despite showing signs of recovery.
Management's forecast of a 3% annual growth in distributable cash flow over the medium term, supported by its capital program and acquisitions, positions the company for ongoing dividend increases. With the board recently announcing its 29th consecutive annual dividend increase, investors can expect a current dividend yield of 7.7% when buying ENB stock at the current level.
TC Energy (TSX:TRP) (TSX:TRP)
TC Energy (TSX:TRP) is another prominent player in the Canadian energy infrastructure sector that has experienced a decline in its share price. Despite the challenges posed by high interest rates and market volatility, TC Energy's business fundamentals remain robust. The company operates a vast network of natural gas pipelines and other energy assets across North America.
With a large capital program in place and a focus on shoring up the balance sheet through asset sales, TC Energy is well-positioned to navigate the current market environment. Investors can benefit from a dividend yield of 7.6%, with the company boasting a track record of annual dividend increases for over 20 years.
Conclusion
Enbridge and TC Energy stand out as top TSX dividend stocks offering attractive yields and potential for dividend growth. As investors seek opportunities to generate passive income, these undervalued stocks present compelling options for long-term portfolio growth. With solid fundamentals and a commitment to shareholder returns, Enbridge and TC Energy remain key players in Canada's dividend landscape.