2 Superb Stocks for TFSA Passive Income

Great TSX dividend stocks are still on sale for TFSA investors seeking quality passive income.

| More on:
TFSA and coins

Image source: Getty Images

The market correction is giving retirees and other investors seeking quality dividends as chance to buy top TSX stocks at cheap prices for Tax-Free Savings Account (TFSA) portfolios focused on passive income.


Enbridge (TSX:ENB) has raised its dividend in each of the past 28 years. The latest increase bumped up the payout by 3.2% for 2023.

The stock has staged a nice rebound off the 2022 low it hit in October, but more upside should be on the way.

Enbridge trades near $56 at the time of writing, that’s still down from the June high around $59.50. It wouldn’t be a surprise to see Enbridge stock top $60 in 2023.


The rebound in domestic and international fuel demand should continue this year, even if there is a recession. Airlines are announcing large plane orders to meet soaring travel demand. This is going to drive up fuel consumption in the coming years. At the same time, companies are increasingly calling employees back to the office, and that trend is expected to continue. The hybrid model is likely here to stay, but this could actually increase the number of cars on the highways, as commuters who previously took public transit five days a week might decide to drive when they have to head to the city.

Enbridge has shifted its investment focus to new segments. The company purchased an oil export terminal in Texas in 2021 and recently announced a 30% stake in the Woodfibre LNG project in British Columbia. Enbridge is also expanding its natural gas utility assets and continues to build up its renewable energy holdings.

The capital program is up to $17 billion. This will help drive revenue and cash flow growth to support future dividend increases.

Enbridge stock still offers a 6.3% dividend yield for investors seeking reliable passive income.


Telus (TSX:T) is good stock to buy if you are worried about a recession. The company gets most of its revenue from essential wireless and broadband internet service subscriptions. Telus has the power to raise prices when it needs extra cash to cover rising operating costs. This is important to consider in the current era of high inflation.

Telus stock trades for $28 per share at the time of writing. That’s down from more than $34 at the 2022 high. The drop looks overdone considering the stability of the revenue stream and the solid performance of the business through 2022. Telus is expected to announce good fourth-quarter results, extending the strong performance of the business in the third quarter of last year.

Telus doesn’t have a media business, so it will avoid the anticipated decline in advertising revenues that will impact its peers. The board is targeting annual dividend growth of 7-10% over the next few years. Telus is decreasing its capital program by about $1 billion in 2023. This should free up more cash for dividends. At the time of writing, the stock offers a 5% dividend yield.

The bottom line on top stocks for TFSA passive income

Enbridge and Telus pay attractive dividends that should continue to grow in the coming years. If you have some cash to put to work in a TFSA focused on passive income, these stocks deserve to be on your radar.

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 and TELUS. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker owns share of Telus and Enbridge.

More on Dividend Stocks

Dial moving from 4G to 5G
Dividend Stocks

Down by 15%: Is BCE Stock a Good Investment in January 2023?

Few companies are truly “too big to fail,” but most market leaders are far more resilient against market headwinds or…

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

Looking for $200/Month in Alternative Income? Buy 530 Shares of This Stock

Do you want to earn $200 monthly alternative income for the next few years? Then accelerate your investments in this…

Read more »

Dividend Stocks

Deadline Coming: 3 TFSA Stocks to Buy Now Before Dividend Payouts

Invest in RNW stock and 2 other TFSA friendly names before this fast-approaching deadline to get the full 2023 dividend.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Passive Income: How to Earn Nearly $367 Per Month in Your TFSA Portfolio

Top TSX dividend stocks now trade at discounted prices for TFSA investors seeking passive income.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Stocks I’d Buy — But I’m Waiting for a Dip

After the recent bounce, It may be smart for investors to wait for a dip before they buy these solid…

Read more »

TFSA and coins
Dividend Stocks

5 Stocks to Buy for $5000/Year in Tax-Free Passive Income

TSX dividend stocks such as Enbridge and TD Bank can help you earn tax-free income via dividends and capital gains…

Read more »

woman data analyze
Dividend Stocks

Passive Income: How to Generate an Average of $385 Per Month in a TFSA

Top TSX dividends stocks now trade at discounted prices for TFSA investors seeking passive income.

Read more »

edit Colleagues chat over ketchup chips
Dividend Stocks

How to Earn $5,350/Year in Passive Income — TAX FREE!

Canadian investors could earn over $5,000/year in tax-free passive income by targeting stocks like First National Financial Corp. (TSX:FN) and…

Read more »