Why I’d Include These 3 Essential Canadian Dividend Stocks in My TFSA

The geopolitical uncertainty, rising inflation, and slowing business investments have made many investors take a step back and hold cash. Such uncertainty makes you question what will happen next and seek solace in hard cash. But it is also true that in hard times, one derives true value. Most stocks are directly affected by economic growth, but essential goods and services are resilient to the economic environment.

Why include essential dividend stocks in a TFSA?

When the going gets tough, these essential goods and services become a defensive play and outperform the market. They can give assured dividends in times of crisis and preserve your portfolio value. If you want extra income for tough times, consider investing through your Tax-Free Savings Account (TFSA), as it allows tax-free withdrawals. You don’t want a high tax bill while you are struggling with higher prices.

Three essential dividend stocks to buy

Coming back to the essential stocks that can give you a side income in times of need. The TSX is home to some of the strongest dividend stocks.

Telus International

In this digital age, the internet is no less than a utility. Among the Canadian telcos, Telus International (TSX:T) has the highest dividend yield of 7.6% and the benefit of scale to thrive in the crisis. The company has increased its 2025 dividend by 7%. However, it will likely slow the dividend growth rate from next year as the management guides 3–8% dividend growth in the 2026–2028 period.

This move comes as Telus adjusts to competitive pricing, reduces balance sheet debt, and restructures its business. A slower dividend growth rate will help Telus sustain the payouts even in a crisis. Now is a good time to buy the dip and lock in a 7.5% yield. A $10,000 investment now can buy you 455 shares, which will give an annual dividend of $760.

Canadian Tire

You might think of Canadian Tire (TSX:CTC.A) as a discretionary retailer. However, in the current market, where people can’t afford to buy cars and spend much on ski trips, Canadian Tire could outperform. The retailer sells auto parts, outdoor, leisure, and seasonal goods, along with discretionary goods like sports (SportChek) and apparel (Mark’s).

The retailer is looking to boost discretionary sales with its True North growth strategy. The strategy aims to increase its return on invested capital by focusing sales efforts on existing clients through loyalty points and data-driven sales pitches. These efforts could increase profits faster than sales if the outcome is as desired.

Canadian Tire stock has already jumped 26% from its April low and is trading closer to its 52-week high. You can still lock in a 4% yield and expect the retailer to grow dividends annually, as it has in 21 out of the last 22 years. A $10,000 investment now can buy you 56 shares, which will give an annual dividend of $397.60.

Enbridge stock

Enbridge (TSX:ENB) is an evergreen dividend stock. It is in Canada’s most lucrative business – energy exports. Its oil and gas pipeline network facilitates the export of oil from Canada to the United States. The tariff wars created panic among investors around export volumes, but a negotiation could drive Enbridge’s stock prices.

Now is a good time to buy the stock and lock in a 6% dividend yield. The company will grow its dividend by 3% in 2026 and increase the growth rate to 5% beyond that. Supporting this growth will be new gas pipelines that come online and the reduction in debt levels, which increased after acquiring three U.S. gas utilities. A $10,000 investment now can buy you 159 shares, which will give an annual dividend of $599.

A $30,000 investment can earn a TFSA dividend of…

If you invest $10,000 in each of the three stocks now, you can get an annual dividend of $1,757 if these companies sustain their dividend per share. The three companies’ fundamentals show that they can sustain and grow dividends for years to come.