Canadian seniors are searching for top TSX dividend stocks to add to their self-directed Tax-Free Savings Account portfolios focused on generating steady and growing passive income.
Source: Getty Images
Fortis
Fortis (TSX:FTS) trades close to $64.50 per share at the time of writing, compared to the 2025 high around $69, so investors have a chance to buy the stock on a modest dip after its big rally over the past year.
The company operates $75 billion in utility assets in Canada, the United States, and the Caribbean. Businesses in the portfolio include natural gas distribution utilities, power generation sites, and electricity transmission networks. Nearly all of the revenue is rate-regulated. This means cash flow should be reliable and predictable. Households and companies are going to use natural gas and electricity regardless of the state of the economy, so Fortis should be a solid stock to own through a recession.
Fortis hasn’t completed a major acquisition in several years, but the business is still growing thanks to the current $26 billion capital program. Management expects the rate base to rise from $39 billion in 2024 to $53 billion in 2029. As the new assets are completed and go into service, the boost to earnings should support planned annual dividend increases of 4% to 6% over five years. Fortis has other projects under consideration that could get added to the mix. This would potentially increase the size of the dividend bump or extend the outlook for dividend growth. Fortis increased the distribution in each of the past 51 years, so investors should feel comfortable with the guidance. At the current share price, investors can get a dividend yield of 3.8%.
Enbridge
Enbridge (TSX:ENB) is another great dividend-growth stock. The board has increased the payout for 30 consecutive years, and more dividend growth should be on the way.
Enbridge is getting a boost from its US$14 billion acquisition of three natural gas utilities in the United States in 2024. The deals made Enbridge the largest operator of natural gas utilities in North America. These assets, when combined with Enbridge’s existing natural gas transmission and storage infrastructure in Canada and the United States, position the business to benefit from anticipated growth in natural gas demand in the coming years. New gas-fired power plants are being built to accommodate the surge in electricity demand coming from AI data centres.
The legacy oil pipeline business remains strategically important for the Canadian and U.S. economies. With Canada looking to diversify its energy sales, Enbridge could have an opportunity to participate in the construction of new pipelines in the country.
Enbridge’s current $28 billion capital program is expected to deliver steady growth in earnings and distributable cash flow over the next few years. This should support ongoing dividend increases. Investors who buy ENB stock at the current level can get a dividend yield of 6.1%. The stock trades near $61.50 compared to the 2025 high around $65.
The bottom line
Fortis and Enbridge pay good dividends that should continue to grow. If you have some cash to put to work in a TFSA focused on generating reliable passive income, these stocks deserve to be on your radar.
