Retirees and other self-directed Tax-Free Savings Account (TFSA) investors are wondering which top Canadian dividend stocks are still attractive to buy right now for a portfolio focused on generating reliable and growing passive income.
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Enbridge
Enbridge (TSX:ENB) is a major player in the energy infrastructure industry. The company’s oil pipelines move roughly 30% of the oil produced in Canada and the United States. On the natural gas side, Enbridge has transmission and storage assets, as well as a number of natural gas utilities in both the U.S. and Canada.
In recent years the firm has diversified its portfolio. Enbridge purchased an oil export terminal in Texas and is also a partner on the Woodfibre liquified natural gas (LNG) export facility being built in British Columbia. International demand for North American oil and gas is expected to rise in the coming years as countries seek out reliable supplies from stable markets.
Enbridge continues to drive growth through acquisitions and development projects. The company purchased three natural gas utilities in the United States in 2024 for US$14 billion. Enbridge is now the largest natural gas utility operator in North America. The distribution assets, combined with the transmission network, position Enbridge to benefit from rising natural gas demand in the domestic market as new gas-fired power generation facilities are built to provide electricity for AI data centres.
Enbridge is working on a $28 billion capital program that should deliver earnings growth to support ongoing dividend increases. The board raised the dividend in each of the past 30 years.
ENB stock trades near $60 per share at the time of writing compared to the 2025 high around $65. Investors can take advantage of the dip to pick up a dividend yield of 6.2%
Fortis
Fortis (TSX:FTS) is a Canadian utility company with $75 billion in assets spread out across Canada, the United States, and the Caribbean. The businesses include natural gas distribution utilities, power generation facilities, and electricity transmission networks.
Nearly all the revenue comes from rate-regulated operations. This means cash flow tends to be predictable and reliable. Fortis is a good stock to own if you are worried about a recession. Homes and businesses need electricity and natural gas, regardless of the state of the economy.
Fortis has not completed a large acquisition for several years, but is still growing the business through its current $26 billion capital program. As the new assets are completed and go into service, the cash flow expansion should support planned annual dividend increases of 4% to 6% through at least 2029. Fortis has a number of other projects under consideration that could get added to the mix.
Investors can buy Fortis for close to $64 today compared to $69 a couple of months ago. The stock now provides a dividend yield of about 3.8%. Fortis increased the dividend in each of the past 51 years.
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 targeting dividend income, these stocks deserve to be on your radar.
