Canadian savers are searching for top TSX stocks to add to their self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) focused on dividends and total returns.
In the current market conditions, with the TSX hitting record highs and some economic uncertainty on the horizon, it makes sense to consider stocks that can deliver steady dividend growth through all economic cycles.
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Fortis
Fortis (TSX:FTS) is a utility company with $75 billion in assets spread out across Canada, the United States, and the Caribbean. The businesses include power generation facilities, natural gas distribution utilities, and electric transmission networks. These assets tend to be rate-regulated and deliver steady and predictable revenue.
Fortis is working on a $26 billion capital program that will increase the rate base from $39 billion to $53 billion by 2029. As the new assets are completed and go into service, the bump to cash flow should support planned annual dividend increases of 4% to 6%. Fortis raised the dividend in each of the past 51 years. Investors can currently get a dividend yield of 3.7%.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is a good stock to own for investors who want reliable dividends and exposure to oil and natural gas. The company is a giant in the Canadian energy sector with extensive production and reserves across the energy product portfolio. CNRL operates oil sands, conventional light and heavy oil, offshore oil, natural gas liquids, and natural gas production. The company tends to be the majority owner, or sole owner, of most of its assets. This gives management the flexibility to move capital around the portfolio to take advantage of positive moves in commodity prices.
CNRL grows through acquisitions and investment in new production across its reserve base. The company is very efficient with low break-even levels. This means CNRL remains very profitable, even when oil prices go through a slump.
The board raised the dividend in each of the past 25 years. CNQ stock is down from $55 last year to $43.50 at the time of writing. Investors who buy the pullback can get a dividend yield of 5.4%.
Enbridge
Enbridge (TSX:ENB) is another top dividend-growth stock to consider for a buy-and-hold portfolio. The energy infrastructure giant raised its dividend in each of the past 30 years. A $28 billion capital program and contributions from acquisitions should support ongoing dividend increases over the medium term.
Enbridge has expanded its American asset portfolio in recent years, adding an oil export terminal, U.S. natural gas utilities, and a wind and solar project developer. International demand for Canadian and U.S. energy is expected to rise in the coming years. Enbridge is in a good position to benefit from the trend.
Enbridge has pulled back to $61 from the 2025 high of around $65 per share. Investors who buy the dip can get a dividend yield of 6.1%.
The bottom line
Fortis, CNRL, and Enbridge pay good dividends that should continue to grow. If you have some cash to put to work in a self-directed portfolio these stocks deserve to be on your radar.
