The Tax-Free Savings Account (TFSA) limit in 2025 is $7,000. Retirees and other income investors are wondering which dividend stocks on the TSX are still attractive and might be good to buy for a self-directed TFSA focused on passive income.
Fortis
Fortis (TSX:FTS) increased its dividend in each of the past 51 years and plans to raise the distribution by 4% to 6% annually over the next five years. That’s good guidance for income investors in a market that will likely go through some turbulence as the United States prepares to implement widespread tariffs.
Fortis owns and operates natural gas utilities, power generation facilities, and electricity transmission networks in Canada, the United States, and the Caribbean. These businesses generate rate-regulated revenue that tends to be predictable and reliable. This helps management plan expansion initiatives while providing a solid base to pay steady dividends.
Fortis is working on a $26 billion capital program that will raise the rate base from $38.8 billion in 2024 to $53 billion in 2029. The resulting boost to cash flow should support the planned dividend growth. Fortis trades near $61 per share at the time of writing. The stock is down from $63 in December, so investors can take advantage of a small pullback. At the time of writing, FTS stock provides a yield of 4%.
Enbridge
Enbridge (TSX:ENB) spent US$14 billion in 2024 to acquire three natural gas utilities in the United States. The move made Enbridge the largest natural gas utility operator in North America and further diversified the assets with more exposure in the United States.
Natural gas demand in the U.S. could soar in the coming years as gas-fired power facilities are built to provide electricity to new artificial intelligence data centres. Tech companies need reliable and scalable power sources to run the AI data centres, so there is demand for standalone power supply that doesn’t rely on the existing electricity grid that is already struggling to meet demand surges.
Enbridge has also invested in export assets in recent years. The company purchased an oil export terminal in Texas and has a stake in the Woodfibre liquified natural gas (LNG) export facility being built in British Columbia. Global demand for U.S. and Canadian oil is expected to rise as international buyers seek out reliable supplies in a global environment where energy security is becoming a major issue.
Enbridge is working on a $27 billion capital program to drive growth in distributable cash flow. The company’s size also gives it the financial firepower to make large strategic acquisitions. Enbridge has increased the dividend for 30 consecutive years. Investors who buy ENB stock at the current level can get a dividend yield of 5.9%.
The bottom line on top stocks for passive income
Fortis and Enbridge are good examples of top dividend-growth stocks that pay attractive dividends. Market turbulence should be expected in the coming months, but the payouts from these companies should be safe.
If you have some cash to put to work in a self-directed TFSA targeting passive income, FTS and ENB deserve to be on your radar.
