When the TSX hits an all-time excessive, the pure response for a lot of traders is to hesitate. It looks like displaying as much as the celebration after everybody else is already dancing. However the fact is, an all-time excessive is a traditional a part of a long-term market’s life cycle, not a crimson flag that you simply’ve missed the boat. The truth is, for disciplined traders, new highs typically sign power, not hazard. The secret is to have a look at why the index is at report ranges, and what sort of investor you might be. These components matter greater than the quantity flashing on the display screen.

What occurred?

Let’s begin with context. The TSX right this moment trades at virtually 30,500 factors, the very best stage in its historical past. For the reason that 2020 crash, company earnings have surged, inflation has boosted nominal revenues, and a number of other main sectors have re-rated larger as the worldwide financial system stabilized. So, is the TSX costly proper now? Not significantly. On a ahead price-to-earnings (P/E) foundation, the index trades round 15 occasions anticipated earnings. That’s solely barely above its 10-year common and effectively beneath U.S. indices just like the S&P 500.

One other factor to recollect is that all-time highs occur extra typically than folks suppose. Up to now 40 years, the TSX has hit new data a whole lot of occasions, typically proper earlier than going larger once more. Traditionally, should you’d solely invested when the market wasn’t at a report, you’d have missed most of its long-term good points. Nonetheless, that doesn’t imply it is best to throw warning out the window. When markets sit at highs, volatility threat will increase. Buyers change into extra delicate to unhealthy information. In case you’re investing new cash, it’s smart to mood your timing slightly than attempting to select the precise prime or backside. A dollar-cost averaging technique helps clean out value fluctuations.

For long-term traders, the query isn’t “Is it too late?” however “How lengthy am I prepared to remain invested?” Over a one-year interval, market timing issues lots. Over 10 years, it issues virtually in no way. Historical past exhibits that should you spend money on the TSX at any level and maintain for no less than seven years, your odds of a constructive whole return exceed 90%, even once you purchase at a market peak. That’s as a result of dividends present regular earnings and cushion volatility, whereas earnings development compounds beneath.

Contemplate BNS

When markets are sitting close to report highs, it’s simple to imagine the bargains are gone. However Financial institution of Nova Scotia (TSX:BNS) proves that even in an costly market, there are nonetheless high quality dividend shares buying and selling at reductions. Scotiabank shares lagged for a while, however at the moment are again at 2022 ranges. But it nonetheless seems to be attractively priced, buying and selling at 17 occasions earnings, with a 4.82% dividend yield.

Scotiabank stays robust because of its place as a world banking powerhouse with roughly $1.4 trillion in property. Its attain throughout Latin America provides it a development profile that units it other than its friends. Current earnings present why it nonetheless deserves consideration. In its third quarter of 2025, Scotiabank reported internet earnings of $2.53 billion, up from $1.9 billion a yr earlier than.

From a macro perspective, Scotiabank is positioned effectively for a rate-cutting surroundings. Decrease borrowing prices will stimulate credit score development, scale back delinquency charges, and increase wealth-management exercise. In the meantime, its Latin American footprint may benefit from robust commodity cycles and U.S. commerce diversification. Even when the TSX as a complete pauses or consolidates after hitting report highs, Scotiabank’s mixture of a excessive yield, low a number of, and bettering fundamentals makes it the form of inventory that may quietly outperform whereas others tread water.

Silly takeaway

All advised, whereas the TSX might look totally valued, Scotiabank doesn’t. When everybody’s speaking about how costly the market seems to be, that is precisely the form of reliable, undervalued dividend inventory that quietly proves them unsuitable.