Where to Invest Your TFSA Contribution for Steady Dividends

These top TSX dividend stocks offer attractive yields for income investors.

Retirees and other investors seeking reliable passive income are wondering which TSX stocks paying good dividends are still attractive to buy for a self-directed Tax-Free Savings Account (TFSA) portfolio.

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

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Canadian Natural Resources

Canadian Natural Resources (TSX: CNQ) has increased its dividend for 25 consecutive years. This is a great track record for a business that relies on commodity prices to determine its revenue and cash flow.

CNRL trades near $43.50 at the time of writing. The stock picked up a new tailwind in recent weeks but is still down 13% in the past year. Investors who buy CNQ stock at the current level can get a dividend yield of 5.4%.

CNRL has the balance sheet strength to make strategic acquisitions when the energy market is weak. This boosts revenue and reserves and positions the business for growth when oil and natural gas prices rebound. Management is good at moving capital around the asset base in an efficient manner to get the best returns based on market conditions. That is one reason the board has been able to steadily raise the dividend through market cycles.

Bank of Nova Scotia

Bank of Nova Scotia (TSX: BNS) is another contrarian pick today for dividend investors. The stock is down 11% in 2025 after a big rally that occurred from August through November last year. Rate cuts in the United States largely drove the rebound in bank stocks through the end of 2024. That momentum has cooled off as markets now anticipated fewer rate cuts from the U.S. Federal Reserve in 2025.

Bank of Nova Scotia is shifting its growth strategy under the new chief executive officer to focus on the United States and Canada. Previous management bet big on Mexico, Peru, Chile, and Colombia, as well as other Latin American markets. Investors have not benefitted as expected from those investments. Bank of Nova Scotia sold its assets in Colombia, Costa Rica, and Panama last year. More divestitures could be on the way to free up capital for investments in new areas of focus.

It will take time for the turnaround efforts to deliver results. In the meantime, investors can pick up a solid 6.2% dividend yield from BNS stock.

TC Energy

TC Energy (TSX: TRP) is up 27% in the past year and trades near its 12-month high, so the stock isn’t on sale today.

However, the energy infrastructure firm has made great progress in the past two years on its efforts to shore up the balance sheet and to position the business for growth. TC Energy monetized non-core assets and spun off its oil pipelines business to pay down extra debt it had to take on to get its Coastal GasLink pipeline project completed. That asset is now in service and generating steady revenue. TC Energy will also see a major pipeline project in Mexico go into commercial service this year.

Natural gas demand is expected to grow in the coming years as gas-fired power-generation facilities are built to provide electricity for artificial intelligence data centres. TC Energy’s extensive natural gas transmission and storage assets in Canada, the United States, and Mexico position the company to benefit from the trend.

Investors who buy TRP stock at the current level can get a dividend yield of 4.9%. The board has increased the payout annually for more than two decades.

The bottom line on top TSX dividend stocks

CNRL, Bank of Nova Scotia, and TC Energy are good examples of top TSX dividend stocks that pay reliable dividends with attractive yields. If you have some cash to put to work, these stocks deserve to be on your radar.

The Motley Fool recommends Bank Of Nova Scotia and Canadian Natural Resources. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned.

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