Most Reliable TSX Dividend Stocks for 2025

In this article, we will discuss the most reliable TSX dividend stocks for 2025.

Even in a red-hot stock market, there are still overlooked opportunities waiting to be discovered. The S&P/TSX Composite Index — the benchmark for Canadian equities — is currently flirting with all-time highs, climbing nearly 17% since its low on April 8, 2025.

While momentum-driven rallies often grab headlines, savvy investors know that long-term gains are often made by spotting value where others aren’t looking — even when the market is rallying. And despite a year-to-date gain of 5.75% for the TSX, not all stocks are riding the wave. In fact, some notable names are still lagging behind, and that creates potential openings.

Here’s a closer look at two underperforming Canadian stocks that could be due for a turnaround — or might deserve to stay in the bargain bin.

Air Canada: A Rebuild in Progress

Once among the world’s top 20 airlines, Air Canada (TSX:AC) has struggled to reclaim its former strength following the massive blow dealt by the pandemic. Despite being Canada’s largest airline with a global footprint, the company still carries the weight of its COVID-era challenges.

Today, Air Canada has a market cap of around $6.05 billion and continues to work its way back to financial health. In Q1 2025, the company posted $5.2 billion in revenue, down just slightly from $5.23 billion a year ago. Still, it managed to deliver $387 million in adjusted EBITDA, showing that progress is being made.

The real challenge? Debt. The airline had to take on significant liabilities to stay afloat while planes were grounded during the pandemic. While operations have resumed, profitability and debt reduction are long-term hurdles. That said, Air Canada is steadily expanding its capacity, and signs of a gradual recovery are emerging.

For investors with a long time horizon and high risk tolerance, Air Canada could represent a turnaround opportunity — albeit one with turbulence ahead.

Suncor Energy: A Value Play with Income Appeal

Suncor Energy (TSX:SU) offers a very different investment story. Based in Calgary, this integrated energy giant operates across the oil sands, refining, and retail sectors — with a growing focus on sustainable energy initiatives.

Suncor’s shares currently trade at about 10.29 times trailing earnings, hinting at a potential undervaluation. As of this writing, the stock is priced at $49.71 and offers a hefty dividend yield of 4.59%, with quarterly payouts of $0.57 per share.

With a market cap exceeding $61 billion, Suncor isn’t a turnaround story — it’s more of a stable, income-generating machine that could reward patient investors with both dividends and long-term price appreciation. The company’s integrated model gives it resilience across oil price cycles, and its gradual push toward lower-emission operations positions it well for the future energy landscape.

Bottom Line

While the Canadian market reaches for new highs, not all stocks have joined the party. The above-mentioned are the most reliable TSX dividend stocks for 2025. Air Canada may offer long-term upside if its recovery continues, but it comes with higher risk and uncertainty. Meanwhile, Suncor Energy provides reliable dividends and value, making it an appealing choice for investors seeking both income and growth.

For those building a self-directed portfolio, these two lagging TSX stocks are worth watching — one for its potential rebound, the other for its steady returns.