2 Canadian Dividend Stocks to Buy and Hold

BCE stock and TC Energy stock could be ideal dividend stocks to buy and hold in your TFSA portfolio.

| More on:
Dollar symbol and Canadian flag on keyboard

Image source: Getty Images

If you are looking for a way to sustainably build your wealth over the long term, there are few better ways to do it than by investing your money in reliable dividend-paying stocks. Buying and holding income-generating stocks in a Tax-Free Savings Account (TFSA) can let you enjoy the long-term returns without incurring any income taxes that could reduce the returns you get to keep from your investments.

Provided that you can find the right assets to buy and hold in your TFSA portfolio, you can generate significant wealth that can help you achieve your long-term financial goals. Finding the right dividend stocks can be a challenge if you are relatively new to stock market investing.

Today, I will discuss two top Canadian dividend stocks to buy and hold for the long run to enjoy tax-free returns in a TFSA through dividends and capital appreciation.

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) is an energy infrastructure company that will continue to be increasingly important in the coming years. The existing pipelines in the country will become more valuable, as new large-scale projects are facing challenges with being built. With over $100 billion in assets throughout Canada, the U.S., and Mexico, TC Energy has a significant advantage.

The $60.01 billion market capitalization company also boasts enough liquidity to make acquisitions that could provide it with an edge over its competitors. TC Energy also has power-generation facilities and natural gas transmission and storage networks that could fuel its growth in the future, as the world moves to cleaner energy production trends.

The stock is trading for $61.30 per share at writing, and it boasts a juicy 5.68% dividend yield.


BCE (TSX:BCE)(NYSE:BCE) is a giant in the Canadian telecom industry, and it is leading the charge for the next generation of 5G technology in the country. The company has been spending a significant amount of money on expanding its 5G infrastructure. It is also expanding its fibre-to-premises network to improve the reach of its services to customers in more remote areas in the country.

While these moves require investing substantial capital, the payoff could be massive for the company. It already enjoys a wide competitive moat in the Canadian telecom sector, and making these investments will give it a greater boost. BCE generates good free cash flows to pay its generous shareholder dividends, and it remains a solid pick for income-seeking investors.

At writing, the stock is trading for $64.31 per share, and it boasts a juicy 5.44% dividend yield.

Foolish takeaway

Investing in reliable companies that have an excellent track record on the stock market is an ideal way to create a revenue stream in your TFSA that is unlikely to let you down during challenging market conditions. BCE and TC Energy are two companies that can be considered industry leaders in their respective sectors.

The companies boast strong fundamentals, generate substantial cash flows, and pay attractive dividends at juicy yields. If you are looking to create a TFSA portfolio that can help you become a wealthier investor in the long run, these two stocks could be the right place to begin building such a portfolio.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

A worker uses a double monitor computer screen in an office.
Dividend Stocks

2 of the Best Canadian Stocks That Pay Out Monthly

These two Canadian dividend stocks are some of the best to buy, offering yields upwards of 5.4% and returning cash…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Passive-Income Seekers: 4 Safe Dividend Stocks to Own Beyond 2033

Dividend stocks are great, but only if they continue to perform after downturns as well. In the case of these…

Read more »

clock time
Dividend Stocks

How Investors Can Build a $1 Million Portfolio in 12 Years

If you can handle it, you can certainly create a million-dollar portfolio in just 12 years, especially considering this dividend…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

4 Big Dividend-Paying Stocks for 2023

These four stocks all earn strong cash flow and offer attractive dividend yields, making them some of the best to…

Read more »

grow dividends
Dividend Stocks

This 7.5 Percent Dividend Stock Pays Cash Every Month

If you need cash now, this dividend stock is certainly one I would consider that could double in share price…

Read more »

Path to retirement
Dividend Stocks

Need Passive Income? Turn $6,000 Into $106 Every Month

Find the right dividend stock for stable growth and you can turn $6,000 into $106 each month!

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

2 Top Stocks to Supercharge Your TFSA Into a Cash Cow

IA Financial and Brookfield Renewable Partners are great passive income generators for new TFSA investors.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

Invest in This 7.5% Dividend Stock for Passive Income

This dividend stock could provide you with double the amount of annual passive income by investing now instead of at…

Read more »