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 traders an opportunity to scoop up high quality names with enticing dividends.
Let’s have a look at three worth shares value shopping for when everybody else is hitting the promote button: Suncor Vitality (Tsx: lunch), Financial institution of Nova Scotia (TSX:BNS), and BCE (TSX:BCE).
Suncor
Suncor Vitality has been caught within the cut price bin for some time. Although oil costs stay sturdy by historic requirements and the dividend inventory generates a great deal of free money circulate, the inventory remains to be buying and selling at 11 instances ahead earnings. The market appears to be punishing Suncor for its previous operational stumbles, however issues are wanting 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 huge benefit: it operates built-in belongings, 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 traders get a 4.3% yielding dividend inventory that might 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 properly beneath pandemic ranges, and traders haven’t been thrilled with the dividend inventory’s worldwide publicity or its slower revenue progress. However BNS has been quietly laying the groundwork for a turnaround.
In its Q2 2025 outcomes, the financial institution reported web 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 sturdy. The corporate continues to put money into progress 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 instances earnings and gives a dividend yield of 5.7%, which is extraordinarily uncommon for a Large 5 financial institution. The financial institution has additionally paid and raised its dividend for many years, giving traders a dependable stream of revenue even in tough patches. Whereas it could not outperform within the quick 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 almost 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. Actually, 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 significant enhance from the $85 million reported final yr. BCE additionally reaffirmed its 2025 steerage, pending its divestiture of Northwestel and excluding its Ziply Fiber acquisition.
Buyers ought to word that BCE just lately slashed its capital spending and introduced 4,800 job cuts to protect profitability. Whereas that’s a tricky transfer, it displays a shift towards effectivity and stronger free money circulate era. At present ranges, BCE gives a dividend yield over 5.3%, coming after slicing its dividend in two. With cost-cutting underway and its community investments really fizzling out, BCE might see bettering margins heading into the latter half of 2025. Even when share value progress is muted, the dividend alone gives compelling worth for long-term traders.
Backside line
All three dividend shares have one thing in frequent: every has been via powerful instances earlier than and has come out stronger. Proper now, every is priced properly beneath historic averages, gives a excessive yield, and stays worthwhile regardless of broader market pessimism.
Shopping for throughout a downturn all the time feels uncomfortable. However that discomfort is commonly the worth of getting a deal. These three shares might not skyrocket tomorrow, however they provide a compelling mixture of worth, revenue, and resilience for Canadian traders keen to go in opposition to the herd. When everybody else is promoting, generally one of the best transfer is to begin shopping for.