The TSX’s 2025 rally has pushed many stocks to new highs, but investors can still find attractive choices in the Canadian market.
Canadian natural resources
Weak oil prices have impacted the stock prices of many oil producers over the past eighteen months. Canadian natural resources (TSX:CNQ), for example, is trading near $44 per share at the time of writing, up from $55 at some point in 2024. The stock is up from its 2025 low of around $35 in April, but has struggled to regain the $50 mark this year.
Robust production growth in Canada and the United States, along with supply increases from OPEC and other producers, pushed the oil market into a surplus situation. Demand growth remains relatively weak as China grapples with ongoing real estate market challenges and US tariffs disrupt the global economy. Analysts broadly expect that oil prices will face headwinds for some time, but that the market will eventually balance out and prices will rise when that happens.
CNRL remains highly profitable and continues to drive revenue growth through acquisitions and successful drilling programs across its asset base. The natural gas business helps diversify the revenue stream, and the expanded pipeline capacity for both oil and natural gas helps CNRL and its peers sell more products in international markets.
CNRL increased the dividend in each of the 25 years. Investors who buy CNQ stock at the current price can get a dividend yield of 5.3%.
Fortis
Fortis (TSX:FTS) should be a good defensive stock to buy for investors concerned that the economy could enter a recession.
Fortis operates utilities in Canada, the United States and the Caribbean. The assets include natural gas distribution companies, power generation facilities and electricity transmission networks. The turnover of these companies is rate regulated. This means that cash flow is usually predictable and reliable. Households and commercial activities must use electricity and natural gas, regardless of the situation in the economy.
Fortis is working on a $28.8 billion capital program that will increase its interest base by approximately 7% per year over five years. This should support the planned annual dividend growth of 4% to 6% through 2030. Fortis has increased its dividend in every last 52 years.
Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) is trading at $100 per share at the time of writing. The stock is near its all-time high, having risen 30% so far in 2025.
Bank of Nova Scotia is making progress with its turnaround program. The company is shifting growth investments to the United States and Canada and away from Latin America, where it has a significant presence in Mexico, Peru and Chile. Bank of Nova Scotia is also streamlining its operations to make domestic operations more efficient.
Even after the big rally, investors can still get a 4.4% dividend yield from the stock right now. As return on equity improves, the market should reward BNS at a higher multiple.
The bottom line
CNRL, Fortis and Bank of Nova Scotia pay attractive dividends that are expected to continue growing. If you have some money to put to work in a TFSA that focuses on dividends, these stocks deserve to be on your radar.
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