Retirees: 3 High-Yield Dividend Stocks to Buy Now for TFSA Passive Income

These three high-yield TSX stocks deserve to be on your radar.

| More on:
retirees and finances

Image source: Getty Images

Canadian pensioners are searching for top stocks to boost income on their TFSA savings.


Manulife (TSX:MFC)(NYSE:MFC) just raised its dividend by 18%. The large increase came after the government lifted its temporary ban on dividend increases by banks and insurance companies.

The stock currently trades near $24.75 per share and offers a 5.3% dividend yield. Manulife has underperformed some of its peers this year, but 2022 might see the stock move meaningfully higher.

Manulife recently entered an agreement to reinsure 75% of its variable annuities business in the United States. The deal unlocks $2 billion in value in the company and goes a long way to reduce risks when equity markets tank. Manulife took a big hit during the financial crisis and has worked hard to ensure it is better positioned to ride out a market crash.

At 7.3 times trailing 12-month earnings, Manulife stock appears undervalued.


Enbridge (TSX:ENB)(NYSE:ENB) is a giant in the North American energy infrastructure sector with a current market capitalization of $102 billion. The company transports 25% of the oil produced in the U.S. and Canada. It also moves 20% of the natural gas used in the United States.

The other businesses include natural gas storage, gas distribution utilities, and renewable energy power generation.

Critics of the stock say Enbridge has limited organic growth potential due to the challenges faced in getting new, large pipelines built. That’s certainly true, but the company’s existing infrastructure is very valuable and strategically important to the smooth operation of the economy in the U.S. and Canada.

Enbridge still finds smaller projects to pursue along the asset base and is large enough to make acquisitions to drive growth.

The stock appears attractive at the current share price near $50 and provides a solid 6.6% dividend yield. The board will likely raise the payout by 3-5% for next year when the 2022 financial plan is announced in early December.

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) is another pipeline operator and power producer with assets located in Canada, the United States, and Mexico.

The company’s main business is natural gas transmission. TC Energy has more than 93,000 km of natural gas pipelines as well as extensive storage facilities. Oil pipelines and nuclear power round out the asset mix.

Natural gas is in high demand around the globe, as countries switch to the fuel from coal and oil. Renewable energy, such as solar and wind, are becoming larger parts of the power mix, but governments are realizing that reliable back-up power generation is needed when demand surges, wind drops, or clouds block the sun.

TC Energy is also looking at carbon sequestration and hydrogen as potential areas for growth in the coming years.

The stock is down to $61 per share compared to the 2022 high around $68. The dip is largely due to challenges TC Energy is facing on its Coastal GasLink pipeline project that will bring natural gas from northeastern British Columbia to LNG facilities on the B.C. coast.

TC Energy plans to raise its dividend by 3-5% per year over the medium term.

Investors who buy the stock now can pick up a 5.7% dividend yield.

The bottom line on top high-yield stocks for TFSA passive income

Manulife, Enbridge, and TC Energy all pay generous dividends that should continue to grow. The stocks appear attractive at current prices and deserve to be on your radar for a TFSA focused on generating reliable passive income.

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.

The Motley Fool recommends Enbridge. Fool contributor Andrew Walker owns shares of Enbridge, TC Energy, and Manulife.

More on Investing

Dividend Stocks

2 of the Best Dividend Stocks to Buy Before They Start to Recover

These dividend stocks offer superior deals for those seeking long-term passive income, but these prices certainly won't last forever.

Read more »

Dividend Stocks

Algonquin Insiders Are Loading Up on AQN Stock – Should You Follow?

Algonquin Power and Utilities (TSX:AQN) insiders poured millions into AQN stock last week. Share valuation multiples seem compelling.

Read more »

Young adult woman walking up the stairs with sun sport background
Stocks for Beginners

New Investor? Buy These 2 Growth Stocks

These two growth stocks are perfect if you want superior growth in the near future but a long-term hold that…

Read more »

Man data analyze

A Passive-Income Triple Play: 3 Top TSX Stocks to Buy Together

These two top Canadian dividend stocks provide long-term investors with much-needed stability and passive income right now.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

TFSA: 2 Stocks To Earn Passive Income Even in a Recession

Investors are coping with 2023 recession fears differently. Some are investing in stocks that can create long-term passive income.

Read more »


2 Top Canadian Retail Stocks That Could Get a Holiday Boost

Here's why Canadian Tire (TSX:CTC.A) and Canada Goose (TSX:GOOS) are two top Canadian retail stocks to buy right now.

Read more »

Cogs turning against each other
Dividend Stocks

3 Stocks You Can Confidently Own in an Upside-Down Market

Although many stocks have lost major value this year, here are three high-quality companies you can confidently own in this…

Read more »

Increasing yield
Dividend Stocks

2 Ultra-High-Yield Dividend Stocks on Sale Today

Besides their ultra-high yields, here are more factors that make these two of the best Canadian dividend stocks worth buying…

Read more »