The pullback in the share prices of some of Canada’s top dividend stocks is giving investors a chance to buy at undervalued prices while securing good dividend yields for a self-directed Tax-Free Savings Account (TFSA) focused on passive income.
Fortis
Fortis (TSX:FTS) offers a 4.4% dividend yield at the time of writing. This is lower than the yield that is available from other stocks, but the dividend growth will steadily boost the return on the initial investment in the coming years.
Fortis gets most of its revenue from rate-regulated businesses. These include power-generation facilities, electric transmission networks, and natural gas distribution utilities. Companies and households need electricity and natural gas regardless of the state of the economy, so Fortis should be a solid stock to own through an economic downturn.
The steady cash flow gives management the confidence to grow the business through acquisitions and…
