Retirees and other investors are searching for good Canadian stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolios focused on passive income.
With the TSX near its record high and tariffs threatening to cause a recession, it makes sense to search for stocks that have solid track records of delivering dividend growth through the full economic cycle.
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Enbridge
Enbridge (TSX:ENB) has a current market capitalization of about $133 billion. The company’s size and solid balance sheet give Enbridge the financial flexibility to make large strategic acquisitions to drive growth while enabling the business to also pursue an aggressive capital program.
Enbridge spent US$14 billion in 2024 to buy three natural gas utilities in the United States. The deals made Enbridge the biggest natural gas utility operator in North America. Natural gas demand is expected to rise in the coming years. Enbridge’s transmission, storage, and distribution assets position the company to benefit from the trend.
On the development side Enbridge is working through a $28 billion capital program that will drive additional revenue and earnings growth in the coming years. This should support ongoing dividend increases. Enbridge raised the dividend in each of the past 30 years. Investors who buy the stock at the current price can get a dividend yield of 6.1%.
Canadian Natural Resoources
Canadian Natural Resources (TSX:CNQ) produces the oil and natural gas that Enbridge carries along its pipeline networks. Turbulent commodity markets make energy producers generally more risky than pipeline stocks as investments. However, CNRL’s diversified assets and strong balance sheet enable it to ride out volatility while still generating good profits, even during times of weaker energy prices.
CNRL is a major Canadian natural gas producer, as well as being an oil player. The gas side of the business helps hedge against lower oil prices. Natural gas currently trades above the price it fetched for most of 2023 and 2024.
Oil still remains the largest part of CNRL’s business. The company has oil sands, conventional heavy oil, conventional light oil, and offshore oil production, along with natural gas liquids. The diversified products provide CNRL with options to shift capital depending on the movements of energy prices to capitalize on the best opportunities.
Like Enbridge, CNRL has the financial firepower to make large acquisitions to drive revenue and profit growth. The company spent US$6.5 billion last year to buy Chevron’s assets in Canada. These businesses helped CNRL deliver strong Q1 2025 results in an otherwise challenging energy market.
New pipeline capacity to the Pacific, Atlantic, and Arctic coasts in Canada would be positive for CNRL. Investors should keep an eye on news regarding energy corridor projects that could be prioritized as Canada looks to diversify its customer base to reduce reliance on the United States.
CNRL trades near $42 per share at the time of writing compared to $55 at one point last year. Investors who buy the pullback can get a dividend yield of 6.1%. CNRL has increased the distribution annually for the past 25 years.
The bottom line
Enbridge and CNRL are industry leaders with great track records of dividend growth. If you have some cash to put to work in a dividend portfolio focused on passive income these stocks deserve to be on your radar.
