Canadian retirees are searching for good Canadian dividend stocks to buy for their self-directed Tax-Free Savings Account (TFSA) portfolios focused on generating reliable and growing passive income to complement OAS, CPP, and company pension payments.
Enbridge
Enbridge (TSX:ENB) is a giant in the energy infrastructure industry. The company’s oil pipeline network carries about 30% of the oil produced in Canada and the United States. Enbridge also has an oil export terminal in Texas. On the natural gas side, the extensive transmission, storage, and distribution assets in Canada and the United States position Enbridge to benefit from the anticipated rise in natural gas demand as new gas-fired power facilities are built to supply electricity. Enbridge acquired three American natural gas utilities last year in a US$14 billion deal that made Enbridge the largest operator of natural gas utilities in North America.
Enbridge is also a big player in wind and solar with installations in both the United States and Europe. The company just announced a plan to invest US$900 million to build a new solar facility in Texas to supply electricity to data centres.
Enbridge’s $28 billion capital program is expected to boost revenue and profits over the next few years, in addition to the gains from the recent acquisitions. This should support ongoing dividend growth. Enbridge has raised the dividend in each of the past 30 years.
Enbridge trades near $62 per share at the time of writing. The stock is up 23% in the past 12 months, but is down from the 2025 high around $65. Investors can get a dividend yield of 6.1% at the current price.
Telus
Telus (TSX:T) is up 16% in 2025, currently trading near $22.60 per share. The rebound is a relief for long-term owners of the stock who watched it slide from $34 in 2022 to as low as $19 late last year.
Soaring interest rates in 2022 and 2023 caused most of the initial pain as rising debt expenses put pressure on profits and cut into cash flow available for debt reduction or distribution to shareholders. The Bank of Canada started to reduce interest rates in the second half of 2024. This led to a recovery in many rate-sensitive stocks, but Telus remained under pressure through the end of last year due to price wars in the telecom sector and revenue declines at its Telus Digital subsidiary.
Telus is arguably a contrarian pick. Interest rates remain elevated and reduced immigration to Canada will impact demand for new telecom services. That being said, the stock might be undervalued, even after the nice bounce in recent months. Prices on mobile plans have increased in 2025, so margins should improve. Telus also plans to take Telus Digital private. The other subsidiaries, including Telus Health and Telus Agriculture and Consumer Goods, are growing at a fast pace and could become meaningful contributors to revenue and profits in the coming years.
Telus is investing in AI data centres in Quebec and British Columbia to provide Canadian businesses with solutions that keep sensitive data in the country. This is in addition to the ongoing expansion of its wireless and wireline network infrastructure.
Telus intends to raise its dividend by 3% to 8% per year over the medium term, supported by solid free cash flow. Investors can currently get a dividend yield of 7.4% from the stock.
The bottom line
Enbridge and Telus pay good 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.
