Canadian seniors are searching for reliable dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolios focused on generating high-yield passive income.
The TSX is near its record high, but retirees can still find attractive stocks to buy in the current market conditions.
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Enbridge
Enbridge (TSX:ENB) trades near $60 per share at the time of writing. The stock is down about $5 from its 2025 peak, so investors have a chance to buy ENB on a modest dip right now.
Enbridge is a giant in the North American energy infrastructure industry with a current market capitalization near $130 billion. This gives management the financial firepower to make large acquisitions to drive growth. Enbridge spent US$14 billion in 2024 to buy three natural gas utilities in the United States. The deal further diversified its asset portfolio and positions Enbridge to benefit from anticipated demand growth for natural gas as new gas-fired power generation facilities are built to supply electricity to AI data centres.
Enbridge is also working on a $28 billion capital program. As the new assets are completed and go into service, the boost to revenue and earnings should support steady dividend growth over the medium term. Enbridge raised the dividend in each of the past 30 years. Investors who buy ENB stock at the current level can get a dividend yield of 6.3%.
Opportunities for new major pipeline developments in Canada could emerge as the country looks to pivot away from its reliance on the United States for the sale of oil and natural gas. Enbridge would be a leading candidate to participate in any new oil pipeline projects, as long as the conditions are attractive for the company and its shareholders.
TC Energy
TC Energy (TSX:TRP) recently completed two major pipeline projects that will drive revenue growth in 2025 and the coming years. The 670km Coastal GasLink pipeline took longer to complete than anticipated and saw its budget more than double to roughly $14.5 billion, but the project is now in service, delivering natural gas from Canadian producers to the new LNG Canada export facility on the coast of British Columbia.
TC Energy’s 715 km Southeast Gateway natural gas pipeline in Mexico fared better and is now collecting tolls. The total cost for the project is estimated at US$3.9 billion, about 13% below budget. It only took three years to get the pipeline completed. Mexico plans to build new gas-fired power plants to provide 8.5 gigawatts of power for the country.
TC Energy did a good job of monetizing non-core assets in the past two years to shore up the balance sheet after taking on extra debt to complete the Coastal GasLink project. Falling interest rates and a stronger capital position will help enable TC Energy to pursue its ongoing portfolio of growth projects. Management expects capital investments to be about $6 billion per year over the medium term.
TC raised its dividend in each of the past 25 years. The stock trades near $64 at the time of writing compared to more than $70 last month. Investors who buy the pullback can pick up a dividend yield of 5.3%.
As with Enbridge, TC Energy is positioned well to participate in any new pipeline infrastructure projects in Canada.
The bottom line
Enbridge and TC Energy 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.
