Top Canadian Stocks to Buy for Your TFSA

These TSX stocks have increased their dividends annually for decades.

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.

Source: Getty Images

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.

The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned.

More on Dividend Stocks

man shops at grocery store
Dividend Stocks

A High Dividend Yield Can Be a Warning Sign: Here’s Why

A high dividend yield can signal trouble. TELUS and Slate Grocery REIT show why investors should examine what supports their…

Read more »

Real estate investment concept
Dividend Stocks

Paying Off the Mortgage or Saving for Retirement First? A Guide for Your 40s and 50s

Find out how rates, renewals and tax rules shape your choice in your 40s and 50s, and where blue chip…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

$14,000 in a TFSA: 2 Stocks I’d Buy for Meaningful Monthly Cash Flow

Cardinal Energy (TSX:CJ) and another monthly income play that's fit for those seeking huge dividends and deeper value.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Use a TFSA to Generate an Average of $500 in Monthly Tax-Free Income

Unlock the potential of a TFSA for tax-free savings. Discover strategies to generate income while minimizing taxes for the future.

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

This Stock Pays You a 4.7% Dividend Every Single Month

Sienna Senior Living's seemingly safe 4.7% monthly dividend yield, eligible dividend tax perks, and strong growth potential appear attractive today

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Most Canadians Pick the Wrong Investing Account First: Don’t Be One of Them

Your first investing account matters far more than your first stock. Compare the TFSA, RRSP and FHSA for 2026 and…

Read more »

money goes up and down in balance
Dividend Stocks

Building a Retirement Paycheque: Where Each Dollar Comes From

Thinking about retirement? Find methods to create passive income to cover daily expenses and enhance your financial freedom.

Read more »

Three children jump on an outdoor trampoline
Dividend Stocks

The RESP Deadline is December 31: Ottawa Adds 20% for Free

An affordable RESP contribution can attract a 20% basic grant, with December timing, catch-up limits, and the child's age shaping…

Read more »