Retirees: 2 Discounted Dividend Stocks to Buy in January

Canadian pensioners are searching for high-yield dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolio focused on generating reliable passive income.

Canadian Natural Resources

Canadian Natural Resources (TSX:CNQ) trades near $47 per share at the time of writing. The stock is up in recent days but still sits way below the $55 it fetched in 2024.

CNRL is a major player in the Canadian energy sector with oil sands, conventional heavy oil, conventional light oil, offshore oil, natural gas liquids, and natural gas production.

West Texas Intermediate (WTI) oil trades for less than US$60 per barrel at the time of writing compared to US$80 a year ago. Analysts broadly think the market will be oversupplied through much of 2026. Record production in Canada and the United States, along with increased supply from OPEC, is expected to outpace sluggish demand growth. China’s economy remains under pressure due to challenges in the property market. An economic slowdown in the United States is possible if tariffs start to be passed on to consumers as businesses are forced to replace inventories at higher prices.

A contrarian play

These near-term headwinds make CNRL a contrarian pick, but income investors can take advantage of the situation to pick up a solid 5% dividend yield on the stock.

CNRL generated higher adjusted earnings through the first three quarters of 2025 compared to the previous year. Increased production helped offset lower margins. CNRL is best known for its oil production, but it is also a significant natural gas producer. The diversified product mix helps balance out the revenue stream.

The construction of natural gas export terminals in Canada is providing CNRL and its peers with access to global buyers. CNRL is also benefiting from the expansion of the Trans Mountain oil pipeline that was completed in 2024. Canada’s focus on reducing reliance on the United States and finding new buyers for its oil and natural gas could lead to new pipelines being built in the coming years.

CNRL raised its dividend in each of the past 25 years. The company has the balance sheet strength to support the payout while driving production growth through acquisitions and drilling programs.

Telus

Telus (TSX:T) is another unloved Canadian dividend stock that looks oversold. Telus trades for less than $19 per share compared to $34 in April of 2022. The nearly four-year slide in the share price has been painful for long-term holders of the stock.

Telus is working on reducing its debt. The company sold a 49.9% stake in its cell tower assets last year and is planning to monetize other assets, including its Telus Health business.

As the debt level declines, investors should become more comfortable with the safety of the dividend. Telus recently announced a pause on dividend growth due to the decline in the share price. Senior managers reportedly loaded up on shares in December, so they appear to be of the opinion the pullback went too far.

Risks remain for the business. A sharp decline in immigration in Canada cuts into an important source of customer growth for Telus and its peers. That situation won’t improve in the near term. Interest rates have declined from the 2023 peak. This is helping reduce interest expenses. A jump in inflation, however, could force the Bank of Canada to raise rates again, which would put pressure on Telus. There is no guarantee the dividend won’t get cut, especially if revenue slips and borrowing costs increase.

That being said, the current 9% dividend yield is attractive for contrarian income investors. Most of the known risk is likely already reflected in the share price. If management succeeds in shoring up the balance sheet, the stock could move materially higher in the next few years.

The bottom line

CNRL and Telus are solid companies trading at discounted prices. If you have a contrarian investing style and are searching for high-yields, these stocks deserve to be on your radar.

The post Retirees: 2 Discounted Dividend Stocks to Buy in January appeared first on The Motley Fool Canada.

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* Returns as of January 15th, 2026

More reading

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• Outlook for Telus Stock in 2026
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• Here’s How Much 45-Year-Old Canadians Need Now to Retire at 65

The Motley Fool recommends Canadian Natural Resources and TELUS. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker owns shares of Canadian Natural Resources and Telus.