Canadian pensioners are searching for good dividend stocks to buy inside their self-directed Tax-Free Savings Account (TFSA) focused on generating steady and growing passive income.
In the current market environment, it makes sense to look for industry leaders that have solid track records of delivering reliable dividend payments through challenging economic conditions.
Enbridge
Enbridge (TSX:ENB) has raised its dividend in each of the past 30 years. The company is a giant in the North American energy infrastructure industry and continues to grow through strategic acquisitions and internal development projects.
Enbridge purchased three natural gas utilities in the United States in 2024 for US$14 billion. The addition of these businesses further diversified its revenue stream and positions Enbridge to benefit from the anticipated surge in demand for natural gas in the coming years.
Enbridge is also working on a $28 billion capital program that will drive steady growth in earnings and distributable cash flow in the next few years. This should support ongoing dividend hikes. Enbridge trades near $61 per share at the time of writing, compared to its 12-month high of around $65. Investors who buy ENB stock at the current level can get a dividend yield of 6.1%.
Telus
Telus (TSX:T) is a contrarian pick right now. The stock trades near $22 per share compared to $34 three years ago. The jump in interest rates in 2022 and 2023 drove up debt expenses on variable-rate loans and made it more expensive to borrow new funds to help pay for wireless and wireline network upgrades. Telus was also hit by weaker revenue in its Telus Digital (Telus International) subsidiary. Price wars in 2024 put added pressure on the sector.
The worst should be over for most of these issues. Telus delivered decent Q1 2025 results and raised the dividend by 7% for 2025. Investors who buy Telus at the current share price can get a dividend yield of 7.6%.
Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) bounced $10 per share in recent weeks, recovering some ground from the initial tariff-induced slump. The stock now trades near $74 per share, but is still down from the $80 it fetched in late 2024 and is well off the $93 it reached in early 2022.
Bank of Nova Scotia is working through a strategy transition that will shift more capital investment to the United States and Canada, while cutting back on growth in Latin America where it spent billions of dollars on acquisitions over the past 20 to 30 years.
It will take time for the turnaround efforts to deliver meaningful results, but investors who buy the stock at the current price get paid a solid 5.9% dividend yield while they wait.
The bottom line
Enbridge, Telus, and Bank of Nova Scotia 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.
