Canadian retirees and other dividend investors are wondering which TSX stocks might be good to buy right now for a self-directed Tax-Free Savings Account (TFSA) portfolio focused on generating high-yield passive income.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is a contrarian pick today. The share price is down 24% in the past year, primarily due to weak oil prices, but recession fears are also to blame.
West Texas Intermediate (WTI) oil trades near US$61 per barrel at the time of writing. It was above US$80 at this time last year. Weak demand from China and production growth in non-OPEC countries contributed to the pullback through the second half of last year. In 2025, the story is more about fears that tariff wars will push the global economy into a recession.
Energy analysts broadly expect the oil market to remain oversupplied into 2026. A recession in the United States and additional economic weakness in China could put more downward pressure on oil prices in the coming months. As such, CNRL investors will have to be patient.
That being said, CNRL is in a good position to ride out the turbulence. The company has a strong balance sheet, and its WTI breakeven price is US$40 to US$45, according to the fourth-quarter (Q4) 2024 earnings report. This means the company is still generating decent margins, even at current oil prices.
CNRL is best known for its oil production, but the company is also a major natural gas producer. This gives CNRL more options for capital deployment to capitalize on the best opportunities in the market. CNRL tends to be the sole owner or majority owner of its assets, so it has the flexibility to shift capital quickly.
CNRL raised the dividend twice in 2024 and has already increased the payout again in 2025. This is the 25th consecutive annual dividend hike. Investors who buy CNRL stock at the current level can get a dividend yield of 5.8%.
Enbridge
Enbridge (TSX:ENB) is a significant player in the North American energy infrastructure industry. The company moves about 30% of the oil produced in Canada and the United States and transports roughly 20% of the natural gas used by American homes and businesses.
Enbridge diversified its assets in recent years. The company spent US$14 billion in 2024 to buy three natural gas utilities in the United States. This made Enbridge the largest natural gas utilities operator in North America. Enbridge has also expanded into exports. The company acquired an oil export terminal in Texas and has a stake in the Woodfibre liquified natural gas (LNG) export facility being built in British Columbia.
The current $26 billion capital program should drive growth in distributable cash flow over the medium term to support ongoing dividend increases. Enbridge raised the dividend in each of the past 30 years. Investors who buy ENB stock at the current level can get a dividend yield of 5.8%.
The bottom line on top stocks for passive income
CNRL and Enbridge pay good dividends that should continue to grow. If you have some cash to put to work in a TFSA focused on passive income, these stocks deserve to be on your radar.
