Have $75,000 to Invest? Make an Average of $100/Week Tax-Free

Investing has the potential to help you grow your savings significantly over the long run, and in Canada, the Tax-Free Savings Account (TFSA) is a significant tool that investors can use to their advantage. Anyone who has cash can use the TFSA to invest their capital and avoid paying taxes on any of the gains.

This is a significant opportunity because, over the long haul, taxes can add up quickly and significantly impact the growth rate at which your capital compounds.

Therefore, the more cash you can save and invest as early as possible, the longer you give it to grow and compound tax-free, which ultimately improves how much your nest egg can grow.

For example, investors with $75,000 who build a portfolio of high-quality, passive income-generating stocks can earn unbelievable passive income. If your portfolio yields 6.9%, you can generate $5,200 a year, which is equivalent to $100 a week of tax-free cash.

So, if you’ve got savings to invest and you’re looking to start generating attractive passive income, here are two of the best Canadian dividend stocks to buy now; each offers a yield of 6.9% or more.

A top Canadian dividend stock to buy and hold for years

If you’ve got cash to invest and you’re looking to generate as much passive income as possible, one of the best Canadian dividend stocks you can buy is Enbridge (TSX:ENB), the massive $104 billion energy infrastructure stock.

As its significant market cap suggests, Enbridge is a significant and well-diversified company that is essential to the North American economy. From transporting oil and gas to owning a massive utility business and being an early investor in renewable energy, Enbridge is a high-quality and, more importantly, highly defensive business you can have confidence owning for years in your TFSA.

Not only are the services it provides essential, but the industry it operates in has high barriers to entry. Furthermore, many of the assets it owns are long-life assets, requiring minimal maintenance each year while generating significant cash flow for Enbridge.

This business model has allowed Enbridge to increase its dividend for 27 consecutive years. That track record is not only attractive for investors seeking a consistently growing income stream, but it also shows Enbridge’s resiliency and ability to continue generating significant cash flow no matter the state of the economy.

Plus, if you have cash to invest today, the good news is that Enbridge is currently trading more than 10% off its 52-week high. Furthermore, its annual dividend of $3.66 per share currently equates to a yield of roughly 7.5%.

So, if you’re looking to boost your passive income and earn attractive tax-free cash in your TFSA, there’s no question that a stock offering a yield of 7.5% and consistent dividend increases each year is certainly one of the best investments to consider today.

A perfect dividend stock to help earn you tax-free cash

In addition to Enbridge, another excellent high-yield dividend stock that can earn you tremendous passive income if you have cash to invest today is Pizza Pizza Royalty (TSX:PZA).

Pizza Pizza’s asset-light business model makes it one of the best stocks in Canada to generate passive income.

It constantly receives royalty payments from all of Pizza Pizza’s locations nationwide, and with minimal expenses required to run the corporation, the majority of its income is paid back to investors.

Furthermore, because the royalties it receives are top-line royalties, meaning they come from sales, they often don’t fluctuate much year over year or quarter over quarter. That means the income Pizza Pizza receives is highly predictable, allowing it to maintain a payout ratio right under 100%.

Therefore, if you have cash to invest now, Pizza Pizza is certainly a top choice. Not only is it a high-quality dividend stock, but in recent months, its share price has been declining as investors are concerned about the broader economy.

Therefore, with Pizza Pizza now trading at a discount and having a track record of being much more resilient than its restaurant stock peers, it’s certainly one of the best dividend stocks to buy now. Plus, with the stock trading below $13.50 per share, its dividend yield has increased to just shy of 7%.