Canadian seniors are searching for ways to generate decent passive income from their Tax-Free Savings Account (TFSA) holdings to complement other retirement earnings, including government and company pensions.
In the current market conditions, it makes sense to look for top TSX dividend stocks with good track records of delivering dividend growth throughout the economic cycle.
Enbridge
Enbridge (TSX:ENB) is a great example of a high-yield dividend stock with a long history of raising its distribution at a steady pace. The board increased the dividend in each of the past 30 years. Investors who buy ENB stock at the current level can get a dividend yield of 6.1%.
Enbridge trades near $61.50 per share at the time of writing. The stock has been as high as $65 in 2025, so investors have a chance to buy Enbridge on a small pullback.
The company continues to grow through a combination of strategic acquisitions and internal development projects. Enbridge is a big company with a current market capitalization of close to $134 billion. This means it needs to make large investments to move the needle in a meaningful way on earnings and cash flow. Last year, Enbridge spent US$14 billion to buy three natural gas utilities in the United States. The deals made Enbridge the largest natural gas utility operator in North America. These assets, combined with Enbridge’s extensive natural gas transmission and storage networks, position the company to benefit from the anticipated surge in demand for natural gas. Gas-fired power generation facilities are being built to supply electricity to AI data centres.
Enbridge’s oil pipelines and export facilities remain very important for Canada and the United States. The company moves about 30% of the oil produced in the two countries. Enbridge has also expanded its renewable energy portfolio in recent years.
The company is working on a $28 billion capital program to drive earnings per share (EPS) and distributable cash flow (DCF) growth of 3% to 5% per year over the medium term. This should support steady dividend increases.
Fortis
Fortis (TSX:FTS) is another top Canadian utility company with a great track record of dividend hikes. In fact, Fortis has given investors a raise in each of the past 51 years.
The company operates $75 billion in utility assets across Canada, the United States, and the Caribbean. Businesses include power generation facilities, electricity transmission networks, and natural gas distribution utilities. Nearly all of the revenue comes from rate-regulated assets, so cash flow tends to be reliable and predictable.
Fortis is working on a $26 billion capital plan that will raise the rate base from $39 billion in 2024 to $53 billion in 2029. As the new assets are completed and go into service, Fortis expects earnings to rise enough to support annual dividend increases of 4% to 6% over five years. Investors who buy FTS stock at the current price can get a dividend yield of 3.8%. That’s still better than rates offered today on GICs, and each dividend increase raises the yield on the initial investment.
The bottom line
Enbridge and Fortis 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.
