Retirement Wealth: 3 Oversold TSX Dividend Stocks to Buy for Total Returns

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The market pullback gives RRSP and TFSA investors the opportunity to buy the TSX’s best dividend stocks at low prices across multiple sectors.

Manulife Financial

Manulife (TSX:MFC)(NYSE:MFC) operates insurance, wealth management and asset management businesses in Canada, the United States and Asia. The company posted record profits in 2021 and increased the dividend by 18% for 2022.

Earnings for the first half of this year are likely to be lower than originally forecast. The increase in morbidity and mortality claims that reached the numbers in the first quarter due to the ramp-up of Omicron will combine with the anticipated decline in wealth and asset management performance in the second quarter.

That being said, the share price’s plunge from $28 earlier this year to the current price of around $22.50 likely reflects these challenges in the short-term market and gives investors the opportunity to buy stocks from Manulife at a reduced price. At the time of writing, the stock offers a dividend yield of 5.9%.

Asia holds strong growth potential for the company, and COVID-19 is expected to have a reduced impact on results in the second half of this year. Stock markets may remain volatile over the next few months, but will eventually rebound.

Suncor Energy

Suncor (TSX:SU)(NYSE:SU) is trading near $41 per share at the time of writing. This is down from the 2022 high around $53. The company is facing security and operational issues that recently led to the resignation of the CEO. Suncor became the target of an activist investor earlier this year and more changes may be on the way.

Despite the turmoil, Suncor is generating strong profits at current oil prices and the downstream refining and retail divisions continue to recover. Q2 2022 earnings could be higher than expected and provide further tailwind for the stock.

Suncor raised the dividend by 100% late last year and increased the payout by 12% when announcing first quarter 2022 results. Another generous increase should be on the way for 2023, if not sooner. . Suncor is also using excess cash to reduce debt and repurchase stock. The current share buyback program allows the company to buy and cancel up to 10% of the outstanding float.

Suncor shares currently appear undervalued and offer investors a dividend yield of 4.5%.

ECB

ECB (TSX:BCE)(NYSE:BCE) is Canada’s largest communications company with wireline and wireless assets providing Internet, television and mobile services to customers across the country. The media division houses a television network, specialty channels, radio stations and interests in sports teams.

BCE is a good defensive stock to buy for a retirement portfolio if you are concerned about inflation and recession risks. The company has the power to raise prices when costs rise. At the same time, mobile and internet services are required by customers regardless of the state of the economy.

BCE shares are looking cheap right now, close to $53.50 per share and offering a dividend yield of 5.8%.

The bottom line on the best stocks to buy now for a retirement portfolio

Manulife, Suncor and BCE are paying attractive dividends which should continue to grow over the next few years. If you have money to invest in a TFSA or an RRSP, these stocks seem cheap today for a portfolio focused on total returns.

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