When markets begin to slide, it’s straightforward to need to run for canopy. However a few of the finest offers occur throughout these uneasy moments. And on the TSX right this moment, there are nonetheless nice corporations buying and selling at steep reductions, providing long-term buyers an opportunity to scoop up high quality names with engaging dividends.
Let’s have a look at three worth shares price shopping for when everybody else is hitting the promote button: Suncor Vitality (TSX:SU), Financial institution of Nova Scotia (TSX:BNS), and BCE (TSX:BCE).
Suncor
Suncor Vitality has been caught within the discount bin for some time. Though oil costs stay robust by historic requirements and the dividend inventory generates a great deal of free money circulate, the inventory continues to be buying and selling at 11 occasions ahead earnings. The market appears to be punishing Suncor for its previous operational stumbles, however issues are trying higher.
In its first-quarter (Q1) 2025 earnings, Suncor reported adjusted funds from operations of $3 billion, up from $3.2 billion the yr earlier than. The dividend inventory additionally returned $15 billion to shareholders and reported its highest first-quarter upstream manufacturing in firm historical past. With elevated refinery output, improved security efficiency, and a agency concentrate on returning capital to shareholders, that is one oil inventory that doesn’t look costly proper now.
After all, vitality is cyclical. However Suncor has one massive benefit: it operates built-in property, that means it makes cash throughout all the oil worth chain. That gives some insulation when oil costs bounce round. Add in a big buyback program and a stronger stability sheet, and buyers get a 4.3% yielding dividend inventory that would shock to the upside if crude holds up.
Scotiabank
Subsequent, Financial institution of Nova Scotia. In order for you worth in Canadian banks, this one is about as beaten-up as they arrive. Shares are nonetheless nicely beneath pandemic ranges, and buyers haven’t been thrilled with the dividend inventory’s worldwide publicity or its slower revenue development. However BNS has been quietly laying the groundwork for a turnaround.
In its Q2 2025 outcomes, the financial institution reported internet revenue of $2.03 billion, in comparison with $2.09 billion a yr in the past. Whereas it was a fall, the dividend inventory stays robust. The corporate continues to spend money on development inside Latin America, with a concentrate on Mexico, whereas additionally prioritizing strategic investments amid an unsure macroeconomic outlook.
Extra importantly, the dividend inventory trades at 16 occasions earnings and provides a dividend yield of 5.7%, which is extraordinarily uncommon for a Massive 5 financial institution. The financial institution has additionally paid and raised its dividend for many years, giving buyers a dependable stream of revenue even in tough patches. Whereas it might not outperform within the brief time period, it’s a affected person investor’s dream: undervalued, underloved, and nonetheless extremely worthwhile.
BCE
Lastly, there’s BCE, Canada’s telecom large. BCE inventory has fallen practically 55% from its 2022 highs as rising rates of interest pressured its capital-intensive enterprise mannequin. However that is nonetheless a dominant participant with over 10 million wi-fi subscribers and an enormous media presence. In actual fact, Q1 2025 earnings confirmed a slight dip in working income to $5.9 billion, down simply 1.3% from the yr earlier than. Plus, it nonetheless posted over $798 million in free money circulate, a serious improve from the $85 million reported final yr. BCE additionally reaffirmed its 2025 steering, pending its divestiture of Northwestel and excluding its Ziply Fiber acquisition.
Buyers ought to be aware that BCE lately slashed its capital spending and introduced 4,800 job cuts to protect profitability. Whereas that’s a troublesome transfer, it displays a shift towards effectivity and stronger free money circulate era. At present ranges, BCE provides a dividend yield over 5.3%, coming after slicing its dividend in two. With cost-cutting underway and its community investments truly fizzling out, BCE might see enhancing margins heading into the latter half of 2025. Even when share value development is muted, the dividend alone provides compelling worth for long-term buyers.
Backside line
All three dividend shares have one thing in frequent: every has been by way of powerful occasions earlier than and has come out stronger. Proper now, every is priced nicely beneath historic averages, provides a excessive yield, and stays worthwhile regardless of broader market pessimism.
Shopping for throughout a downturn at all times feels uncomfortable. However that discomfort is usually the value of getting a deal. These three shares might not skyrocket tomorrow, however they provide a compelling mixture of worth, revenue, and resilience for Canadian buyers keen to go in opposition to the herd. When everybody else is promoting, generally one of the best transfer is to begin shopping for.
