September has a history of being a volatile month for stock markets and that could turn out to be the case in 2024. Pullbacks can provide investors with buying opportunities on dips but also require some caution when putting new money to work.

As such, self-directed Registered Retirement Savings Plan (RRSP) investors might want to consider discounted dividend stocks that have long track records of dividend growth and could outperform in the next year. Recent rate cuts by the Bank of Canada and anticipated cuts by the U.S. Federal Reserve should provide support for dividend stocks in 2025.

TC Energy

TC Energy (TSX:TRP) operates 93,000 km of natural gas pipelines and about 650 billion cubic feet of natural gas storage capacity in Canada, the United States, and Mexico. The stock dropped from $74 in 2022 to as low as $45 last year as interest rates rose, but it has since rebounded nicely as bargain hunters moved in after the mechanical completion of a major project and in anticipation of lower interest rates.

TC Energy completed the construction of its 670 km Coastal GasLink project late last year. The pipeline is scheduled to start moving natural gas from Canadian producers to a new liquified natural gas (LNG) export facility in British Columbia in 2025. TC Energy uses debt to fund part of its growth programs, so lower interest rates will reduce borrowing costs.

Management has done a good job of monetizing non-core assets to pay off extra debt taken on to get Coastal GasLink finished. Looking ahead, the company's capital program is expected to be $6 billion to $7 billion per year. As new assets go into service, the boost to cash flow should support dividend increases.

TC Energy increased the dividend in each of the past 24 years. Investors who buy the stock at the current level can get a dividend yield of 6%.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) trades near $69 at the time of writing compared to $93 at one point in 2022.

Anticipation of rate cuts and hopes for a soft landing for the economy in the coming year are driving new enthusiasm for bank stocks. Lower interest rates would normally be viewed as a negative as they put pressure on net interest margins. Investors, however, are more focused on reductions in loan losses as struggling borrowers benefit from reduced rates. Provisions for credit losses (PCL) rose considerably at Bank of Nova Scotia over the past year. Falling interest rates should lead to PCL stabilization in the coming months and reductions next year.

Bank of Nova Scotia is transitioning its growth strategy from South America to Canada, the U.S. and Mexico where it sees better opportunities to deliver investor returns. The shift will take time to produce results but could start to attract new investors who avoided the stock previously due to concerns about economic and political volatility in Peru, Chile, and Colombia, where Bank of Nova Scotia invested heavily over the past two decades.

Investors who buy BNS stock at the current level can get a dividend yield of 6.1%.

The bottom line on RRSP picks

TC Energy and Bank of Nova Scotia pay attractive dividends that should continue to grow. If you have some cash to put to work in a self-directed RRSP, these stocks deserve to be on your radar.