Retirees: 2 TSX Stocks That Have Raised Dividends for Decades

Consider adding these two TSX dividend stocks to your retirement income portfolio to generate passive income that grows for years to come.

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TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.

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Canadian seniors cannot rely simply on their pensions to fund a comfortable retirement. Canadian retirement plans are designed to cover a portion of their expenses during their golden years. For the rest, they must use other means to ensure they can enjoy the comforts they need in their retirement. Creating a passive income stream that supplements your pensions is necessary to fully enjoy a good life.

Stock market investing can be a savvy way to use your money to create a passive income stream that boosts your retirement income. By identifying and investing in a portfolio of reliable dividend stocks, Canadian seniors can earn extra cash that covers their needs.

If you use the contribution room in your Tax-Free Savings Account (TFSA) to build and grow such a portfolio, you can enjoy the returns without incurring taxes on it.

To enjoy tax-free income that makes retirement more fun for you, it is necessary to pick the right stocks. Today, we will look at two TSX stocks that have grown payouts for decades and look likely to continue doing so for many more to come.

Fortis

Fortis Inc. (TSX:FTS) is a $26.9 billion market capitalization Canadian utility holding company that operates several natural gas and electricity utility businesses.

The company has over 3.4 million customers across Canada, the US, Central America, and the Caribbean. Fortis provides energy to customers in regulated and non-regulated markets, generating almost its entire revenue through the regulated segment.

Providing an essential service, Fortis is a defensive business. The utility holding company enjoys stable and predictable cash flows, which have allowed it to increase payouts to investors for over 50 years. The Canadian Dividend Aristocrat is also considered a good alternative to bonds due to its reliable dividend hikes spanning over five decades.

Despite higher interest rates weighing on its financials for more than a year, Fortis stock remains a top option. Regardless of economic uncertainties, people cannot turn off their gas and electricity. As of this writing, Fortis stock trades for $54.56 per share and boasts a 4.3% dividend yield.

Enbridge

Enbridge Inc. (TSX:ENB) is a $103.7 billion market capitalization giant in the Canadian energy industry. The Calgary-based company operates a multinational pipeline network responsible for transporting crude oil, natural gas, and other hydrocarbons produced and consumed throughout North America.

It also operates a regulated natural gas utility business and runs Canada’s largest natural gas distribution company. Enbridge has recently started growing its portfolio in the renewable energy industry, focusing on onshore and offshore wind projects.

Enbridge is a business vital to the North American economy due to the quantity of hydrocarbons it transports in the region. Its recent investments in other segments will likely improve its cash flows for years to come, even as the world slowly shifts away from traditional energy products.

Natural gas is expected to play a key role in the energy transition process, and acquisitions in recent years have put it in pole position to benefit from the transition.

As of this writing, Enbridge stock trades for $48.78 per share and boasts a 7.5% dividend yield. After 29 years of dividend hikes, it is also a Canadian Dividend Aristocrat with a stellar track record.

Foolish takeaway

Dividend stocks that grow payouts can be a rewarding way to earn a passive income to keep pace with and even beat inflation. Boasting decades of hiking payouts annually, Canadian Dividend Aristocrats like Fortis stock and Enbridge stock can be excellent foundations for a dividend income portfolio to fund your retirement.

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 recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

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