Retires and different earnings traders are trying to find engaging Canadian dividend shares so as to add to their self-directed Tax-Free Financial savings Account (TFSA) or Registered Retirement Financial savings Plan (RRSP) portfolios.

The TSX is close to its document excessive, and financial headwinds could possibly be on the horizon. With this in thoughts, traders ought to contemplate sector leaders that pay dependable dividends and commerce at affordable costs.

Canadian Pure Assets

Canadian Pure Assets (TSX:CNQ) is a serious participant within the Canadian oil and pure fuel business. The inventory trades close to $44 per share on the time of writing, in comparison with $55 at its highest level in 2024.

Weaker power costs are responsible for a lot of the decline. West Texas Intermediate (WTI) oil trades close to US$61 per barrel in comparison with US$80 final 12 months. Pure fuel costs in Canada have additionally come beneath strain in 2025, including to the destructive sentiment.

CNRL, nonetheless, stays very worthwhile. Manufacturing progress from acquisitions and drilling packages helps offset a few of the margin squeeze as a result of decrease power costs. CNRL may be very environment friendly and has a broad vary of oil property, together with oil sands, typical mild and heavy oil, and offshore oil manufacturing. The corporate says its WTI breakeven worth is about US$40 to US$45 per barrel. Pure fuel ought to have a vivid future as export capability from liquified pure fuel (LNG) expands on the West Coast. CNRL owns huge pure fuel reserves in western Canada and would profit from larger entry to higher-priced world markets.

The corporate makes use of its sturdy steadiness sheet to make the most of downturns to amass property at discounted costs. CNRL can then reap the rewards when power costs rebound. As the only or majority proprietor of most of its operations, CNRL additionally enjoys capital flexibility. Administration does job of shifting capital across the portfolio to get one of the best returns, relying on shifts in power costs.

CNRL raised the dividend in every of the previous 25 years. Traders who purchase CNQ inventory on the present worth can get a dividend yield of 5.3%.

Canadian Nationwide Railway

Canadian Nationwide Railway (TSX:CNR) trades close to $133 per share. The inventory was as excessive as $180 in early 2024, however has since been on a downward pattern.

Uncertainty round commerce negotiations between america, Canada, China, and Mexico has compelled CN to stroll again its monetary steering for 2025 and 2026. It will maintain traders on the sidelines till there may be extra readability.

CN operates rail strains that join ports on the Pacific and Atlantic coasts of Canada to the Gulf Coast in america. Tariffs on automobiles, lumber, crops, and metals affect the commerce and shipments of those merchandise. CN strikes 300 million tons of commodities, manufactured merchandise, and completed items yearly. The community is a key a part of the graceful operation of the economic system in america and Canada.

Traders will should be affected person, however there ought to be first rate upside potential from this degree. CN stays very worthwhile and has elevated the dividend in every of the previous 29 years.

The underside line

Canadian Pure Assets and Canadian Nationwide Railway commerce at discounted costs and pay good dividends that ought to proceed to develop. If in case you have some money to place to work, these shares should be in your radar.