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Income Investors: 3 Top Canadian Dividend Stocks Yielding 4-5% for Your TFSA

Canadian income investors are always searching for reliable companies to add to their TFSA dividend portfolios.

Let’s take a look at three top names in the market that look attractive today.

Power Financial Corp. (TSX:PWF)

Power Financial is a holding company with businesses primarily focused on the wealth management and insurance industries in Canada. The company also has a stake in a European business that owns positions in a number of the continent’s top global stocks.

Interest rates are starting to rise in Canada and the United States, and that tends to be positive for insurance companies, as they can earn higher returns on the funds they have to set aside for potential claims.

Regarding wealth managers, rates often rise during times of economic growth, which often spurs strong equity markets.

Power Financial raised its quarterly dividend earlier this year to $0.4125 per share. That’s good for an annualized return of 4.6%.

Enbridge Inc. (TSX:ENB)(NYSE:ENB)

Enbridge is North America’s largest energy infrastructure company with widespread gas and liquids pipelines and distribution businesses.

The company has $31 billion in near-term commercially secured projects underway that should be completed in the next few years.

As the new assets shift from development to operation, Enbridge says cash flow should increase enough to support annual dividend growth of at least 10% through 2024.

The current distribution already provides a yield of 4.9%, so investors who buy today are looking at some decent returns in the coming years.


BCE is primarily known for its mobile, TV, and internet businesses, but the company also owns a media division that includes sports teams, a television network, specialty channels, radio stations, and an advertising business.

When the media assets are combined with the world-class wireless and wireline network infrastructure, you get a powerful business that has the capability to interact with most Canadians on a daily basis.

The company generates sufficient free cash flow to cover its generous dividend and has the power to raise prices when it feels it needs more revenue.

BCE’s distribution provides a yield of 4.9%.

Is one a better bet?

Enbridge likely offers the highest dividend-growth prospects over the medium term. If you only choose one, I would probably make the energy infrastructure giant the first choice.

Otherwise, it might be worthwhile to split a new investment across the three names to get diversification through variety of industries and geographic locations.

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Fool contributor Andrew Walker owns shares of BCE. and Enbridge. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.

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