TFSA: 3 Canadian Dividend Stocks to Own for Decades

These stocks have increased their dividends for decades.

| More on:
Blocks conceptualizing Canada's Tax Free Savings Account

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Seniors and other investors seeking dividends for passive income and total returns are wondering which top TSX stocks might be good to buy right now for a self-directed Tax-Free Savings Account (TFSA).

Fortis

Fortis (TSX:FTS) trades near $63 at the time of writing. The stock is up about 17% in the past six months, largely driven by cuts to interest rates in Canada and the United States.

Created with Highcharts 11.4.3Fortis PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Fortis uses debt to finance part of its expansion projects. The reduction in borrowing costs helps boost profits and can free up more cash to be paid to investors or used to reduce debt.

Fortis is working on a $26 billion capital program that is expected to increase the rate base from $38.8 billion in 2024 to $53 billion in 2029. As the new assets are completed and go into service, Fortis expects cash flow growth to support planned annual dividend increases of 4-6%. Fortis raised the dividend in each of the past 51 years. Investors who buy Fortis stock at the current level can get a dividend yield of 3.9%.

Canadian Natural Resources

Canadian Natural Resources (TSX:CNQ) is a giant in the Canadian energy industry with vast oil and natural gas production and reserves. The company’s diversified product scope and its tendency to be the sole or majority owner of assets give it the flexibility to quickly move capital around the portfolio to take advantage of market opportunities.

With its strong balance sheet and current market capitalization of nearly $104 billion, CNRL has the financial firepower to make large strategic acquisitions in Canada to boost production and reserves. The board recently increased the dividend by 7%. This is the 25th year in a row investors have received a raise. Investors who buy CNQ stock at the current level can get a dividend yield of 4.75%.

New pipeline capacity to the coast of British Columbia is giving CNRL, and other Canadian producers increased access to international buyers who want to secure reliable energy supplies. As global demand for oil and natural gas rises, CNRL is in a good position to benefit.

TC Energy

TC Energy (TSX:TRP) completed its 670 km Coastal GasLink pipeline late last year. The project is expected to go into commercial operation in 2025 upon the completion of the construction of a liquified natural gas (LNG) facility in British Columbia. The pipeline will move natural gas from Canadian producers to the facility for export to global markets. Another major pipeline project located in Mexico will also go into service next year.

Cash flow from the new assets, along with contributions from the ongoing capital program, should support steady dividend increases. TC Energy raised the payout in each of the past 24 years. Investors who buy TRP stock at the current level can get a dividend yield of 4.8%.

The bottom line on top TSX dividend stocks

Fortis, Canadian Natural Resources, and TC Energy all pay attractive dividends that should continue to grow. If you have some cash to put to work in a self-directed TFSA targeting dividend income, these stocks deserve to be on your radar.

Should you invest $1,000 in Capital Power right now?

Before you buy stock in Capital Power, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Capital Power wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Canadian Natural Resources and Fortis. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

grow money, wealth build
Dividend Stocks

Why I’d Invest $10,000 in This Undervalued Dividend-Growth Stock for Decades of Income

This undervalued dividend stock offers a high yield of over 8% and can help you earn more than $200 in…

Read more »

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

Here’s Exactly How a $20,000 TFSA Could Potentially Grow to $200,000

Index funds like the iShares S&P/TSX Capped Composite Index (TSX:XIC) are tax free in a TFSA.

Read more »

Dividend Stocks

How I’d Invest $6,000 in Canadian Real Estate Stocks to Build Lasting Wealth

Canadian REITs on sale! See how grocery-anchored retail properties offering 9% yields could turn $6,000 into lasting wealth despite US…

Read more »

rain rolls off a protective umbrella in a rainstorm
Dividend Stocks

Economic Headwinds: Should You Still Consider Buying the Dip?

A market dip might seem like a bumpy road, but it can be far smoother in the future with the…

Read more »

e-commerce shopping getting a package
Dividend Stocks

Consumer Spending Plays Amidst the Current Market Dip

Consumption may go down in market dips, but certain consumer stocks are certainly better off than others.

Read more »

Asset Management
Dividend Stocks

12% Dividend Yield! I’m Buying This TSX Stock and Holding for Decades

Stocks with high-dividend yields carry risks. But they could be a good long-term investment. Here is a 12% dividend stock…

Read more »

Canadian flag
Dividend Stocks

How I’d Build a Foundation of Canadian Value Stocks in My Investment Strategy

Canadian investors can explore iShares Canadian Value Index ETF for value stock ideas to build a foundation for their diversified…

Read more »

Canadian dollars are printed
Dividend Stocks

How I’d Transform a $30,000 TFSA Into a Cash-Flow Machine

Here's why TFSA investors should consider owning dividend stocks such as Mullen Group in 2025.

Read more »