The pullback in the is giving self-directed RRSP investors an opportunity to buy some of Canada’s top dividend stocks at undervalued prices. One popular RRSP investing strategy involves buying stocks with growing dividends and using the payouts to acquire new shares. The power of compounding that occurs over time can turn a small initial investment into a significant retirement fund.

Enbridge
Enbridge (TSX:TSX:)(NYSE:ENB) is a giant in the North American energy infrastructure industry with significant networks of oil and pipelines that move 30% of the oil produced in Canada and the United States and 20% of the natural gas used by American homes and businesses.

Enbridge also has natural gas utilities and renewable energy assets to balance out the revenue stream. The odds of getting a major new oil pipeline approved and built are pretty slim these days, but Enbridge has strong development plans across other segments and acquisition opportunities to keep driving revenue and profit growth.

The company is evaluating carbon capture and storage hubs that will leverage its expertise. Enbridge is also taking advantage of the rise in international demand for Canadian and U.S. oil and natural gas. Enbridge purchased a strategic oil export terminal in Texas late last year and recently announced plans to build two new natural gas pipelines to feed liquified natural gas (LNG) sites on the Gulf Coast.

Europe is searching for reliable new LNG sources to replace supplies from Russia, while countries around the globe are switching form oil and coal to natural gas to produce electricity.

Enbridge stock trades near $53.50 at the time of writing compared to more than $59.50 earlier this month. The stock appears oversold and now provides a 6.4% dividend yield.

Telus
TSX:elus (TSX:T)(NYSE:TU) just announced plans to buy LifeWorks for $2.3 billion in a deal that will significantly expand the size of Telus Health, which is already a leading player in the Canadian market for digital health services catering to doctors, hospitals, insurance companies, and employer-provided health plans.

The subsidiary ran under the…