Canadian retirees are searching for good TSX dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolios focused on generating reliable and growing passive income.
Enbridge
Enbridge (TSX:ENB) raised its dividend in each of the past 30 years. The energy infrastructure firm currently boasts a market capitalization near $139 billion and possesses a solid balance sheet. This gives Enbridge the financial clout to make large acquisitions while also pursuing organic growth projects.
Enbridge spent US$14 billion in 2024 to buy three natural gas utilities in the United States. The deals further diversified Enbridge’s asset portfolio, adding businesses that generate steady rate-regulated cash flow. Enbridge is now the largest natural gas utility operator in North America. These assets complement the existing natural gas transmission and storage infrastructure in Canada and the United States at a time when natural gas demand is expected to rise. New gas-fired power generation facilities are being built to provide electricity for AI data centres.
Enbridge’s oil pipeline operations remain strategically important for the Canadian and American economies. The company moves about 30% of the oil produced in the two countries. Canada is now looking at the possibility of building new energy pipelines to enable producers to access more global customers. Enbridge could potentially be a player in that process.
The company is currently working on a $28 billon capital program that will boost earnings in the next few years. This should support ongoing dividend increases. Investors who buy ENB stock at the current price can get a dividend yield of 5.9%.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is up about $10 per share in the past two months, but still only trades near $45.50 at the time of writing compared to a high of $52 last fall. Investors can take advantage of the dips to add the stock as a solid income pick.
CNRL is a major oil and natural gas producer with a diversified asset portfolio that includes oil sands, conventional heavy oil, conventional light oil, offshore oil, and natural gas production. The company has a long track record of making strategic acquisitions to boost production and reserves, as it did late in 2024 with its US$6.5 billion purchase of Chevron’s Canadian assets.
CNRL is the full owner or majority owner on most of its operations. This gives management the flexibility to quickly shift capital around the asset portfolio to take advantage of the best opportunities in the market as commodity prices change.
The company reported record oil and natural gas production in Q1 2025. CNRL raised the dividend by 4% in March, following two increases in 2024. The latest hike marks the 25th consecutive year CNRL has increased the distribution. That’s a great track record for a business that relies on commodity prices to determine its profits.
Investors who buy CNQ stock at the current level can get a dividend yield of 5.1%
The bottom line
Enbridge and CNRL pay attractive 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.
