If you’ve ever wished you could go back in time to capitalize on early investment opportunities—like buying Bitcoin at $1—you’re not alone. While time travel isn’t an option, there are still some great undervalued stocks available today that can set you up for solid long-term gains. With just $5,000, investors can start building a dependable, income-generating portfolio. Here are two dirt-cheap Canadian stocks that look like smart buys right now.
Also Read: Reliable TSX dividend stocks 2025
Fortis: A Dividend Powerhouse Hiding in Plain Sight
At first glance, Fortis Inc. (TSX:FTS) may not seem like a “cheap” stock, but when you factor in its stability, consistent growth, and dividend record, it’s one of the best bargains on the market. Fortis is a leading North American utility company with operations across Canada, the U.S., and the Caribbean. Its highly regulated assets generate predictable cash flows that fund both growth projects and shareholder payouts.
The company’s $26 billion capital investment plan focuses on modernizing infrastructure and transitioning toward cleaner, renewable energy sources—an initiative that positions it well for long-term sustainability. Fortis also boasts an extraordinary track record of 51 consecutive years of dividend increases, placing it among the most reliable dividend stocks in Canada. The current 3.5% dividend yield, combined with steady earnings growth, makes Fortis an excellent choice for income-seeking, long-term investors.
Trading just under $70 per share and roughly $3 below its 52-week high, Fortis offers a compelling entry point. Its price-to-earnings (P/E) ratio of 20.6 reflects a reasonable valuation for a company with such consistent profitability and defensive strength. A $5,000 investment in Fortis could generate growing dividend income over time, especially through reinvestment, making it a cornerstone holding for conservative portfolios.
Also Read: Dividend paying stocks Canada
Suncor Energy: A High-Yield Bargain in the Energy Sector
Another strong value pick is Suncor Energy Inc. (TSX:SU), one of Canada’s most recognized integrated energy companies. Suncor’s operations span the entire oil value chain—from extraction and refining to distribution and retail—giving it unmatched control over costs, margins, and supply. This vertical integration allows the company to maintain strong profitability, even in volatile oil markets.
Suncor’s disciplined approach has translated into robust financial performance and shareholder returns. The company offers an attractive 4.1% dividend yield, supported by solid cash flow and consistent annual dividend growth. Investors looking for income should note that Suncor’s next ex-dividend date is in November, making now an opportune time to enter.
At a P/E ratio of just 12.3, Suncor is trading well below market averages, providing a compelling valuation for investors who want exposure to the energy sector without overpaying. Its efficient operations and reliable dividend policy make it a high-quality, undervalued blue-chip stock.
Bottom Line: Two Reliable Stocks for a Strong Portfolio
Both Fortis and Suncor combine the best of stability, dividend income, and value. Fortis offers steady, defensive growth and long-term dividend reliability, while Suncor provides higher yield and cyclical upside. Together, they create a balanced foundation for investors looking to put $5,000 to work in dependable, income-generating assets.
In an uncertain market, these two undervalued Canadian stocks stand out as safe, long-term bets capable of delivering consistent returns and financial peace of mind.
Sign Up For our Newsletters to get latest updates
