Canadian buyers can nonetheless discover high quality TSX dividend shares buying and selling at enticing costs so as to add to their self-directed Tax-Free Financial savings Account (TFSA) portfolios targeted on passive revenue and long-term complete returns.

Shopping for unloved shares takes braveness and requires endurance, however the contrarian technique can ship good returns on a rebound.

Canadian Pure Sources

Canadian Pure Sources (TSX:CNQ) trades close to $45 per share on the time of writing in comparison with as excessive as $55 final 12 months.

Decrease vitality costs are chargeable for the pullback within the inventory, as CNRL is a significant producer of oil and pure fuel. The oil property are various, together with oil sands, typical gentle and heavy oil, and offshore oil manufacturing. On the pure fuel facet, CNRL has vital operations in Western Canada with in depth reserves.

West Texas Intermediate (WTI) oil trades close to US$60 per barrel proper now in comparison with greater than US$80 final 12 months. CNRL says its WTI breakeven level is within the vary of US$40 to US$45 per barrel, so the corporate stays very worthwhile, even at present worth ranges. Administration has finished job of accelerating manufacturing by means of acquisitions and profitable drilling applications. The added income helps offset the drop in margins.

For the primary 9 months of 2025, CNRL reported adjusted web earnings from operations of $5.7 billion in comparison with $5.4 billion within the first three quarters of 2024.

Alternative

CNRL has the dimensions and stability sheet energy to reap the benefits of weak vitality costs to make giant strategic acquisitions, because it did final 12 months when it bought Chevron’s Canadian property for US$6.5 billion.

Extra oil pipeline capability is on the best way. Brownfield enlargement tasks are already being deliberate and discussions are ongoing to doubtlessly get one other main pipeline constructed to hold Alberta oil to the coast.

On the fuel facet, a glut of pure fuel in Canada has put strain on home costs this 12 months. Producers are ready for expanded liquified pure fuel (LNG) export capability to come back on-line to promote to higher-priced worldwide markets. A number of LNG amenities are beneath development in Canada and the federal government is prioritizing these amenities in its plan to scale back reliance on the US for vitality gross sales.

Pure fuel demand is anticipated to rise within the coming years as gas-fired energy technology amenities are constructed to provide electrical energy for power-hungry AI knowledge centres.

Development of export capability for each oil and pure fuel would profit CNRL.

Dangers

Traders will should be affected person. Analysts broadly count on the oil market to be in a surplus place by means of subsequent 12 months as rising provide in non-OPEC nations, together with Canada and the US, combines with a weak demand outlook. China’s financial system stays beneath strain because of the property disaster and American tariffs. The U.S. financial system might decelerate subsequent 12 months if tariffs begin to push up costs. A lower in oil consumption by the 2 nations could be a headwind for oil costs.

Betting on new main oil pipelines in Canada comes with threat. A number of regulatory roadblocks must disappear earlier than the personal sector considers taking the plunge. Getting all of the required stakeholders on facet will probably be troublesome, even with the urgency to pivot away from reliance on the U.S. for vitality gross sales.

Dividend

CNRL raised its dividend in every of the previous 25 years. Traders who purchase the inventory on the present stage can get a dividend yield of 5.2%. Environment friendly operations, capital flexibility, and a powerful stability sheet have enabled the regular distribution progress.

The underside line

Close to-term volatility is anticipated within the vitality sector. That being stated, CNRL ought to be enticing on the present stage and pays buyers nicely to attend for the subsequent rebound in vitality costs. In case you have some money to place to work, this inventory deserves to be in your radar.