Traders who missed the massive rally this 12 months within the TSX are questioning which Canadian dividend shares may nonetheless be buying and selling at cheap costs and are good so as to add to a self-directed Tax-Free Financial savings Account (TFSA) or Registered Retirement Financial savings Plan (RRSP) portfolio targeted on earnings and long-term complete returns.

Financial institution of Nova Scotia

Financial institution of Nova Scotia (TSX:BNS) is up 28% up to now six months. The inventory trades close to $89 per share in comparison with $64 at one level in the course of the April tariff rout however continues to be beneath the $93 it reached in early 2022 earlier than price hikes in Canada and america triggered a pullback within the financial institution sector.

A few of Financial institution of Nova Scotia’s friends are buying and selling at document highs and have outperformed the inventory in recent times. A turnaround plan launched by the brand new CEO who took management in early 2023, nonetheless, ought to assist BNS catch up.

Financial institution of Nova Scotia is shifting progress investments away from Latin America to focus extra on america and Canada. Beforehand, the financial institution spent billions of {dollars} to amass and construct companies in Mexico, Peru, Colombia, Chile and different Latin American nations on the hopes of benefiting from the growth of the center class as these economies increase. Shareholders, nonetheless, haven’t reaped the anticipated rewards. Financial institution of Nova Scotia bought its operations in Colombia, Costa Rica, and Panama earlier this 12 months. Further offers might be on the best way.

In 2024, the financial institution spent US$2.8 billion to purchase a $14.9% stake in KeyCorp, an American regional financial institution. The deal positions Financial institution of Nova Scotia to increase its U.S. presence.

Financial institution of Nova Scotia reported strong fiscal third-quarter (Q3) 2023 outcomes, sparking the newest upswing within the inventory. Internet earnings was $2.5 billion in comparison with $1.9 billion in the identical interval final 12 months. Provisions for credit score losses got here in at $1.04 billion, barely decrease than in fiscal Q3 2024, however dropped significantly from the $1.4 billion booked in fiscal Q2 2025.

It should take a while for the technique transition to ship full outcomes. Within the meantime, buyers can nonetheless choose up a good 4.9% dividend yield from BNS inventory.

Canadian Nationwide Railway

Canadian Nationwide Railway (TSX:CNR) is down 20% up to now 12 months. The rail big took successful in 2024 because of disruptions attributable to labour strikes and wildfires. The corporate nonetheless managed a small improve in income in comparison with the earlier 12 months, however income dipped a bit on account of larger bills.

In 2025, the tariffs imposed by america are impacting commerce volumes from some key U.S. commerce companions in core segments. That is making it troublesome for CN to offer monetary steering by way of 2026 as the corporate tries to estimate demand for its providers. CN operates 20,000 route miles of rail strains connecting Canadian ports on the Pacific and Atlantic with the Gulf Coast in america.

Regardless of the uncertainty, CN stays a revenue machine. The corporate generated Q2 2025 earnings of $1.172 billion. Administration revised steering decrease for the 12 months, however CN nonetheless expects to ship earnings progress.

The board raised the dividend in every of the previous 29 years and is benefiting from the low share value to purchase again as much as 20 million shares. Close to-term weak point may persist, however there may be respectable upside potential when the commerce offers with China, Canada, and Mexico are lastly resolved. CNR sells for $131 per share on the time of writing. It was as excessive as $180 in 2024.

The underside line

Financial institution of Nova Scotia and CN are high Canadian shares paying good dividends that ought to proceed to develop. When you’ve got some money to place to work, these shares need to be in your radar.