Investors who missed the big rally this year in the TSX wonder which Canadian dividend shares may still act at reasonable prices and are good to add to a self -driven tax -free savings account (TFSA) or Registered pension saving plan (RRSP) portfolio (RRSPP) portfolio -portfolio -portfolio -portfolio (RRSP) -Portfeuilles (RRSP) -Portfolio (RRSP) -Portfolio (RRSP) portfolios (RRSP) may be aimed at the income and the total return in the long term.
Bank of Nova Scotia
Bank of Nova Scotia (TSX: BNS) has risen by 28% in the last six months. The shares act almost $ 89 per share compared to $ 64 at a certain point during the tariff route of April, but is still below $ 93 that reached the early 2022 before the tariff increases in Canada and the United States caused a withdrawal into the banking sector.
Some of the colleagues from Bank of Nova Scotia act on record highs and have performed the shares better in recent years. However, a reversal plan launched by the new CEO that took over control at the beginning of 2023 should help BNS to catch up.
Bank of Nova Scotia is shifting growth investments away from Latin -America to concentrate more on the United States and Canada. Previously, the bank spent billions of dollars acquiring and building companies in Mexico, Peru, Colombia, Chile and other Latin -American countries to benefit from the expansion of the middle class as these economies expand. However, shareholders have not harvested the expected rewards. Bank of Nova Scotia sold its activities in Colombia, Costa Rica and Panama earlier this year. Extra deals can be on the road.
In 2024, the bank spent US $ 2.8 billion to buy a $ 14.9% interest in Keycorp, an American regional bank. The deal positions Bank of Nova Scotia to expand its American presence.
Bank of Nova Scotia reported solid tax results of the third quarter (Q3) 2023 results, so that the last revival was fueled in stock. The net result was $ 2.5 billion compared to $ 1.9 billion in the same period last year. The provisions for credit losses were $ 1.04 billion, slightly lower than in tax Q3 2024, but fell considerably of $ 1.4 billion booked in tax Q2 2025.
It will take some time before the strategy transition delivers full results. In the meantime, investors can still get a decent dividend yield of 4.9% from BNS shares.
Canadian National Railway
Canadian National Railway (TSX: CNR) has fallen by 20% in the past year. The railway giant received a hit in 2024 as a result of disruptions caused by labor attacks and forest fires. The company still led a small increase in sales compared to the previous year, but the profit fell a bit due to higher costs.
In 2025, the rates imposed by the United States influence trade volumes of some important American trading partners in core segments. This makes it difficult for CN to offer financial guidelines up to 2026, because the company tries to estimate the demand for its services. CN operates 20,000 route kilometers of railway lines that connect Canadian ports on the Pacific and Atlantic Ocean with the Gulf Coast in the United States.
Despite the uncertainty, CN remains a profit machine. The company generated Q2 2025 income of $ 1,172 billion. Management revised guidelines lower for the year, but CN still expects a profit growth.
The board has increased the dividend in each of the last 29 years and benefits from the low share price to buy back to 20 million shares. Weakness can persist in the short term, but there is a pretty upward potential when trade with China, Canada and Mexico are finally resolved. CNR sells for $ 131 per share at the time of writing. It was as high as $ 180 in 2024.
The Bottom Line
Bank of Nova Scotia and CN are top Canadian shares that pay good dividends that must continue to grow. If you have some money to put to work, these shares deserve to be on your radar.
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