The TSX is packed with dividend-paying stocks that return cash to investors. However, if you’re buying for your Tax-Free Savings Account (TFSA) and want highly reliable dividend stocks that can generate worry-free passive income, the list of truly dependable options is certainly a lot smaller.
Buying reliable stocks is always important, but it’s even more crucial in a TFSA, where contribution room is limited. That’s why it’s essential to focus on the highest-quality stocks to make the most of its tax-free growth potential.
So, if you’re looking to boost the passive income your TFSA generates, here are three reliable dividend stocks to buy right now.
Image source: Getty Images
A top Canadian utility stock with a yield of 5.2%
If you’re looking for worry-free passive income, one of the best places to start is the utility sector with a company like Emera (TSX: EMA).
High-quality utility companies are some of the lowest-volatility stocks you can buy, and the income they generate is both robust and predictable, making them some of the best dividend stocks on the market.
With essential operations diversified across several regions, Emera is easily one of the best investments that dividend investors can make.
It’s constantly reinvesting some of its cash flow to ensure its operations continue to grow for years to come while returning the majority of its income to investors.
Therefore, not only does it pay a reliable dividend, but it’s also constantly increasing the dividend each year. In fact, over the last five years, it’s increased its dividend by over 18%.
So, if you’re looking to buy a dividend stock with a compelling yield that will consistently increase the passive income it generates for your TFSA, Emera is one of the best companies on the TSX to consider today.
A top Canadian dividend stock to buy for your TFSA
In addition to Emera, another high-quality and highly reliable dividend stock to buy now is Brookfield Infrastructure Partners (TSX: BIP.UN).
Brookfield has utility operations as well, but it also owns other essential assets like ports, railroads, telecom towers, and much more.
In addition to its essential operations, though, Brookfield’s portfolio is also well diversified geographically, with operations in countries all over the world.
Furthermore, with roughly 70% of its revenue indexed to inflation, it’s one of the best and most reliable stocks you can buy.
Plus, like Emera, it’s also consistently increasing the passive income it generates for investors. In fact, management aims to increase the distribution by 5% to 9% each year.
Today, with the stock trading just off its 52-week high, its yield is sitting at more than 5.1%.
So, if you’re looking for top dividend stocks to buy for your TFSA today, there’s no question that Brookfield Infrastructure is one of the best investments on the TSX.
An impressive real estate stock with a compelling yield and significant long-term growth potential
The real estate sector is also full of high-quality dividend stocks that can generate solid passive income. While there are plenty of top real estate investment trusts (REITs) to consider, one of the very best is Granite REIT (TSX: GRT.UN), an industrial REIT that owns properties such as warehouses and distribution centres.
Over the past few years, Granite has been one of the best REITs to buy for long-term growth, in addition to its solid dividend yield.
With the popularity of e-commerce consistently increasing, the demand for industrial space is constantly growing. In fact, analysts estimate that its funds from operations (FFO) per unit will increase by 8% in 2025 and another 7.7% in 2026.
Furthermore, after facing macroeconomic headwinds over the last few years, the stock continues to trade off its highs, making it ultra-cheap.
For example, Granite’s trading at a forward price-to-FFO ratio of roughly 12.4 times, well below its five-year average of 17.3 times, showing just how cheap it is today.
In addition, while its current dividend yield of 4.9% is compelling, it’s also sustainable. In fact, even as Granite continues to increase its distribution each year, it’s expected to pay out just 66% of its adjusted FFO this year.
So, if you’re looking to boost the passive income your TFSA generates, Granite is undoubtedly one of the best dividend stocks in the real estate sector to buy now.
