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A handful of top Canadian dividend stocks are trading at depressed prices and now offer high yields for investors focused on generating passive income inside a Tax-Free Savings Account (TFSA).
Buying stocks when they are out of favour requires a contrarian strategy, but the long-term rewards can be significant.
TC Energy
TC Energy (TSX:TRP) stock isn’t as cheap as it was a few months ago, but investors can still get a 7% dividend yield, and there could be more upside on the way. TRP trades for close to $54 at the time of writing. This is up more than 20% from the 12-month low, although still way off the $74 the stock reached in June 2022.
The downward trend through the second half of 2022 and most of 2023 was largely caused by rising interest rates in Canada and the United States. TC Energy has a large capital program and borrows money to fund part of the growth initiatives. Higher borrowing costs…
