Written by Andrew Walker at The Motley Fool Canada
Investors who missed the rally in the TSX this year are wondering which top dividend stocks might still be undervalued and good to buy for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio.
BCE
BCE (TSX:BCE) has been on a rough ride for the past two years. The stock slipped from $74 in 2022 to as low as $43 in July this year and currently trades near $46.50. Cuts to interest rates by the Bank of Canada are now bringing bargain hunters off the sidelines and more upside could be on the way.
BCE uses debt to pay for a large chunk of its capital investments, which include expanding and upgrading the wireline and wireless network infrastructure. Soaring interest rates in 2022 and 2023 drove up interest expenses. This put pressure on profits and reduced cash available for distributions and debt reduction.
BCE raised the…
