As Canadian equities continue to surge in 2025, dividend-paying stocks have been left behind — creating attractive opportunities for income-focused investors. While the broader market has rallied sharply, select dividend names such as Telus, Cogeco, and Nutrien remain undervalued. These companies combine reliable cash flows, consistent dividend growth, and appealing yields, making them strong alternatives to low-yield bonds in Canada’s current monetary easing environment.
Also Read: Reliable TSX Dividend Stocks 2025
Telus (TSX:T)
Telus commands roughly 30% of Canada’s wireless market, standing as one of the nation’s “Big Three” telecom operators. The stock currently trades at nearly a 30% discount to its fair value estimate of C$30 (as of Oct. 23) and offers an impressive forward dividend yield of 7.9%. Telus has increased its dividend every year for the past decade, maintaining mid- to high-single-digit annual growth. Management’s continued commitment to dividend expansion underscores the company’s confidence in its long-term earnings power. Provided there are no large-scale acquisitions, Telus appears well positioned to reduce leverage while continuing to reward shareholders.
Also Read: Dividend paying stocks Canada
Cogeco (TSX:CGO)
Cogeco provides broadband, television, and landline services across rural Canada and the U.S. The company has delivered 14% annualized dividend growth since 2010 and is projected to continue growing its payout at a high single-digit rate. Strong free cash flow generation — averaging about 18% of sales — allows Cogeco to maintain a conservative dividend payout ratio below 40%, giving management flexibility to reduce debt. While leverage has been slightly elevated in recent years, analysts see no concern over Cogeco’s ability to meet its obligations, supported by its resilient cash flow base.
Nutrien (TSX:NTR)
As the world’s largest fertilizer producer, Nutrien commands a leading 20% global potash market share and operates the largest agricultural retail network across North America and Australia. The company’s stable retail segment generates steady free cash flow, providing a secure foundation for its dividend, even during periods of weak fertilizer prices. With no major expansion projects in progress, Nutrien should continue to generate ample free cash flow, supporting ongoing dividend growth and share repurchases.
Bottom Line
For investors seeking dependable income with long-term growth potential, Telus, Cogeco, and Nutrien stand out as undervalued dividend leaders offering both resilience and attractive yields in a volatile market.
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