Retirees: 2 TSX Dividend Stocks That Have Raised Payouts Annually for Decades

These stocks offer high yields and should continue to raise their payouts.

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Canadian seniors are searching for top TSX dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) focused on generating tax-free passive income. Bargain hunters started buying oversold dividend stocks in recent weeks, but many names still look undervalued and offer attractive yields.


Enbridge (TSX:ENB) raised its dividend in each of the past 29 years. The board gave investors a 3.1% increase for 2024, and more gains should be on the way. The stock trades for close to $50 at the time of writing compared to a 12-month low of around $43 but is still way off the $59 it reached in 2022.

Enbridge is working on a $25 billion secured capital program that will drive revenue and distributable cash flow (DCF) growth in the next few years. The company is also in the process of closing its US$14 billion acquisition of three natural utilities in the United States. Enbridge’s legacy oil and natural gas transmission networks remain important assets that should increase in value over time, given the difficulties faced by the industry to get new mega-projects approved and built.

In recent years, Enbridge has focused new investments on segments that show good growth potential and will complement the core operations. The company acquired an oil export terminal in Texas and is a partner in the Woodfibre liquified natural gas (LNG) export facility being built on the coast of British Columbia. Enbridge has also expanded its solar and wind assets, along with the recent big bets on natural gas distribution.

Natural gas is expected to play a key role in the energy transition process in both North America and around the globe. Gas-fired power generation produces lower emissions than power produced by burning coal or oil. Reliable power is needed as a backup to renewables that have weather limitations. Surging power demand from artificial intelligence data centres will likely drive demand for new gas-fired power stations.

Enbridge is also positioned to benefit from the anticipated growth in the hydrogen market. The fuel can be blended with natural gas through the natural gas infrastructure.

Management is targeting DCF growth of 3% per year through 2026 and 5% after that timeframe. This should support ongoing annual dividend increases in the same range. Investors who buy ENB stock at the current level can get a 7.3% dividend yield.

TC Energy

TC Energy (TSX:TRP) is a large Canadian energy infrastructure company with oil pipelines, natural gas transmission networks, natural gas storage, and power generation facilities in Canada, the United States and Mexico.

Management is making progress on strengthening the balance sheet through the sale of non-core assets. This is partly required after the company’s Coastal GasLink project saw its budget more than double to $14.5 billion by the time it reached mechanical completion late last year. TC Energy sold a 40% stake in some American assets to raise $5.3 billion in 2023 and is on track to monetize another $3 billion in 2024. In addition, TC Energy plans to spin off the oil pipelines business this year.

The overall business performed well in 2023, despite the challenges, and TC Energy continues to advance its capital program with investments expected to be $6 billion to $7 billion per year over the medium term.

The stock trades close to $53 at the time of writing. This is above the 12-month low of around $44 but is still way off the $74 the stock reached in 2022, so there is decent upside potential.

TC Energy has increased the dividend annually for the past 24 years. Investors should see yearly distribution growth continue in the 3-5% range. At the current share price, TRP stock provides a dividend yield of 7.25%.

The bottom line on top stocks for passive income

Enbridge and TC Energy are good examples of top TSX dividend-growth stocks that offer high dividend yields. If you have some cash to put to work, these stocks look cheap today and deserve to be on your radar for a portfolio targeting 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. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker owns shares of Enbridge.  

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