Canadian traders with Registered Retirement Financial savings Plan (RRSP) money to place to work can reap the benefits of the market correction to purchase prime TSX dividend shares at undervalued costs.

TD Financial institution

TD (TSX:TD) is Canada’s second-largest financial institution with a present market capitalization close to $16 billion. The inventory is down significantly from the 2023 excessive after the current rout in financial institution shares. TD trades for near $80 per share on the time of writing in comparison with $93 in February.

The failure of two banks in america and one other in Europe triggered a wave of promoting within the sector final month. TD is underneath extra strain than a few of its friends, because it has a big U.S. presence and is within the strategy of making an attempt to shut its US$13.4 billion acquisition of First Horizon, a U.S. regional financial institution with greater than 400 branches positioned primarily within the southeastern a part of the nation.

Uncertainty across the end result of the deal could be holding traders on the sidelines. If the acquisition is accomplished TD will turn out to be a top-six financial institution within the American market.

TD has an ideal monitor report of dividend development with a compound annual development charge above 10% over the previous 25 years. On the present share worth, traders get a 4.75% yield, so that you receives a commission properly to journey out any extra turbulence that might happen within the coming months.

Shopping for TD inventory on huge dips has traditionally confirmed to be a worthwhile transfer.

TC Power

TC Power (TSX:TRP) had a troublesome run over the previous 12 months. The share worth fell from $74 in June to $51 final month. A rebound in current weeks has the share worth again as much as $56, however this nonetheless appears to be like low-cost for buy-and-hold traders looking for excessive dividend yields and a shot at some first rate capital features.

TC Power is fighting rising prices on its Coastal GasLink pipeline that’s being constructed to hold pure fuel from producers in northeastern British Columbia to a brand new liquified pure fuel (LNG) plant and export facility on the B.C. coast. Within the newest replace, TC Power mentioned the full value is predicted to be round $14.5 billion. That’s greater than double the preliminary estimate.

Happily, the undertaking is greater than 80% full. Whereas extra delays might happen the worst of the dangerous information ought to be out on the event. TC Power has a complete of $34 billion in capital tasks deliberate by means of 2028. Administration nonetheless expects income and money movement to develop sufficient to help annual dividend will increase of at the very least 3%. That’s excellent news for traders. The board has elevated the payout yearly for greater than twenty years.

On the time of writing, TC Power inventory supplies a 6.6% dividend yield.

The underside line on prime shares for RRSP traders

TD Financial institution and TC Power are prime TSX dividend shares with payouts that ought to proceed to develop. When you’ve got some money to place to work in a self-directed RRSP, these shares seem low-cost right now and need to be in your radar.