With inflation rising and markets shaky, Canadians are looking for ways to secure a steady income. A recent BMO survey shows just how deep the concern runs. Between March and April 2025, 58% of Canadians said they were more worried about their financial situation, up 16 points in a single month. Inflation fears rose from 60% to 76%, and 78% said the cost of living was a growing issue. With numbers like that, it’s no wonder so many are turning to their Tax-Free Savings Account (TFSA) to build a little financial comfort. One of the best ways to do that is by investing in dividend stocks with a long history of consistent payouts.
If I had $7,000 in my TFSA, I’d split it between three Canadian stocks that have proven themselves time and again: Bank of Nova Scotia (TSX:BNS), Northland Power (TSX:NPI), and Canadian Natural Resources (TSX:CNQ). All three have paid dividends for more than 20 years. And that kind of track record doesn’t just happen by accident.
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BNS
Let’s start with Bank of Nova Scotia. As of writing, it trades at around $69 per share. That’s one of the highest among Canada’s big banks. In its latest earnings report, the bank reported net income of $2.03 billion for the second quarter (Q2), along with earnings of $1.48 per share.
While it’s had a tough year, with loan growth slowing and credit provisions rising, it remains one of Canada’s most stable financial institutions. If I were to put about $2,277 into BNS, I’d be looking at roughly $140 in tax-free annual income, thanks to its reliable dividend.
NPI
Next up is Northland Power. This dividend stock focuses on renewable energy, including wind and solar. It pays a monthly dividend of $0.10 per share, or $1.20 annually, trading at about $20.69 at writing. In Q1 2025, Northland reported net income of $111 million, down slightly from last year, but its cash flow remained strong.
Its growth pipeline is also solid, with new projects in Germany and Taiwan expected to boost results in 2026 and beyond. Putting $2,316.28 into Northland would generate around $134 per year in monthly, tax-free income. And monthly dividends always feel a little more satisfying.
CNQ
Lastly, Canadian Natural Resources offers a reliable dividend with some energy exposure. It trades around $85 and has a dividend of $2.35 annually. In Q1 2025, it posted net earnings of $2.5 billion and returned $1.7 billion to shareholders through dividends and buybacks.
CNQ benefits from high oil prices, low breakeven costs, and strong free cash flow. It’s one of the most shareholder-friendly companies on the TSX. An investment of $2,295 in CNQ would deliver about $63.50 per year in tax-free dividends.
Bottom line
Combined, those three holdings could generate around $337.77 per year in tax-free passive income inside a TFSA. And that’s without any reinvestment or dividend growth. All three dividend stocks have increased their dividends over the years, so that number could climb steadily with time.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| BNS | $69.00 | 33 | $4.24 | $139.92 | Quarterly | $2,277.00 |
| NPI | $20.69 | 112 | $1.20 | $134.40 | Monthly | $2,316.28 |
| CNQ | $85.00 | 27 | $2.35 | $63.45 | Quarterly | $2,295.00 |
This kind of strategy isn’t flashy. It doesn’t hinge on the next big tech winner or a crypto moonshot. It’s slow and steady. But when you’re trying to build long-term income that the CRA can’t touch, that’s exactly what you want. Dividend-paying stocks with decades of reliability offer the kind of calm Canadians need right now.
