Tax‑Free Savings Account (TFSA) investors are often on the lookout for steady passive income. With $10,000 or even less, you can set up a mini‑portfolio that pays you while you sleep. Two Canadian dividend stocks stand out for TFSA investors right now: Parkland (TSX:PKI) and TC Energy (TSX:TRP). Each offers income and different risk‑reward dynamics, making them a smart pair for passive-income seekers.
Parkland
Parkland is a fuel distributor and convenience store operator. It trades near $38 as of writing and offers a dividend yield of about 3.74%. In its latest earnings, Parkland reported forward annual dividends totalling $1.44 per share, which underpins its income appeal. The dividend stock saw strong earnings recovery as fuel demand rebounded, helping generate cash flow to sustain payouts.
Parkland stands out for a few reasons. It combines retail exposure with fuel distribution, and that balance can help weather slower growth. Its footprint covers Canada, the U.S., and select global markets. Investors have rewarded it in past years for consistent dividend performance.
However, Parkland is sensitive to fuel price swings and economic slowdowns. Rising oil prices boost its margins, but they can also erode demand and pressure costs. It is down about 30% from its highs, but the dividend stayed firm, an interesting case of resilience and caution.
TRP
TC Energy is a different story. It owns and operates pipelines and power systems across Canada, the U.S., and Mexico. It trades near $64.75 as of writing and yields about 5.11%. In its first quarter of 2025, TC Energy reported comparable earnings of $0.95 per share, slightly lower than $1.02 a year ago, along with net income of $0.94 per share. Comparable earnings before interest, taxes, depreciation, and amortization (EBITDA) remained steady at $2.7 billion, with segmented earnings of $2 billion versus $1.9 billion a year ago. The utility maintained a quarterly dividend of $0.85 per share.
Pipelines are critical infrastructure, and TC Energy has a long track record. Its earnings are backed by long‑term contracts and rate‑regulated businesses. The dividend stock is also investing heavily in natural gas and nuclear projects, pointing to future growth. But pipelines face regulatory and environmental hurdles. Shifts in energy policy, project delays, or cost overruns could affect earnings. Its debt‑to‑capital and interest costs remain issues to watch, especially if rates continue to rise.
A winning pair
So, why own both? Parkland brings retail resilience and fuel exposure, with growth tied to consumer habits and energy prices. TC Energy offers stable, contract‑driven income and a higher yield. Together, they balance each other. In a $10,000 TFSA, for instance, splitting $5,000 into each could generate about $187 and $261 in annual dividends, nearly $450 in passive income. And that income is both tax‑free and deposited directly into your account.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| PKI | $38.40 | 130 | $1.44 | $187.20 | Quarterly | $4,992.00 |
| TRP | $64.75 | 77 | $3.40 | $261.80 | Quarterly | $4,987.75 |
It turns out that reinvesting those payouts could amplify your returns. Even with conservative growth assumptions of 3% per year and unchanged dividends, your investment could grow by over 25% in a decade. For a TFSA holder, that compounding effect combined with income can make a big difference between a passive strategy and having a core income stream.
But let’s be honest. These aren’t risk‑free picks. Fuel prices fluctuate. Infrastructure projects face delays. Interest rates could impact debt servicing. Energy policy could shift dramatically. A one‑stock bet in either company carries risk. That’s why pairing them makes sense. Diversification across sectors can soften the blow if one underperforms while the other holds steady.
Bottom line
In the end, Parkland and TC Energy offer a sensible blend for TFSA investors. One gives you fuel‑linked income with retail upside. The other offers stable contracts, larger-scale projects, and a higher yield. Both are established, pay real dividends, and are priced attractively relative to history. For $10,000, or even less, you can start building that passive income stream. And over time, reinvesting and monitoring, that modest start could grow into something much more meaningful.
