The TSX Index is near its all-time high, but a few leading Canadian dividend-paying stocks have fallen in recent weeks and are now trading attractively.

Fortis

Fortis (TSX: FTS) (NYSE: FTS) is a utility company with $ 56 billion in assets located in Canada, the United States and the Caribbean. The Company derives most of its revenues from regulated activities which include the production of electricity, the transmission of electricity and the distribution of natural gas.

With the TSX index currently experiencing its strongest rally since 1985, there is a good chance that we will see a healthy correction in the coming months. Fortis tends to hold up well when the market hits a slowdown, so it’s a good defensive choice for diversifying a portfolio.

The company is expected to update its five-year investment plan when third-quarter results are released later this week. The current $ 19.6 billion investment program is expected to increase the rate base from $ 30.5 billion in 2020 to $ 40.3 billion in 2025. This will drive revenue and cash flow growth for support an average annual dividend increase of 6% during this period.

Fortis has other projects under consideration and may make an acquisition in the coming years to stimulate its growth. The company has solid experience in carrying out strategic transactions that complement the asset portfolio.

The stock is currently trading at nearly $ 55 a share from the 2021 high above $ 59. Investors who buy the stocks today can get a 3.9% return.

Renewable energies TransAlta

Renewable energies TransAlta (TSX: RNW) has an extensive portfolio of renewable energy facilities in Canada, the United States and Australia.

The activities include hydroelectric, solar and wind assets. TransAlta Renewables also owns gas-fired power plants and is increasing its presence in the electricity storage market with a solar battery project.

TransAlta Renewables is expanding its portfolio of assets through a combination of acquisitions and organic developments. The company recently announced an agreement to buy a wind farm in North Carolina. Additional agreements could be in progress. The renewable energy sector is expected to consolidate over the next few years as utility and asset management companies seek ESG investments.

Second quarter results were insufficient due to an unexpected shutdown of a gas-fired power plant. Additionally, the recent collapse of a wind tower in New Brunswick forced the company to shut down the wind farm until repairs were made and other units inspected. This will affect current quarterly revenues.

Despite recent challenges, the long-term outlook is positive and the decline in the share price could be overstated. TransAlta Renewables is trading at nearly $ 19 a share at the time of writing, up from $ 24 at the start of January 2021.

Investors who buy the stock at the current price can earn a solid 4.9% dividend yield.

The net result on the main stocks of the TSX for the passive income of the TFSA

Fortis and TransAlta Renewables currently appear to be undervalued in an otherwise expensive market. Stocks pay good dividends and should be solid holdings for a passive income TFSA.