TFSA Passive Income: 2 Canadian Dividend Stocks for Retirees

These stocks have great track records of dividend growth and now offer high yields.

Canadian pensioners are searching for top TSX dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolios focused on generating reliable and growing passive income.

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins

Source: Getty Images

Enbridge

Enbridge (TSX: ENB) is a good example of a dividend-growth stock that also provides a high yield. The shares currently trade for close to $62. This is down from the 2025 high of around $65, so investors can take advantage of the dip to get a nice dividend yield above 6%.

Enbridge is best known for its vast oil pipeline network that moves roughly 30% of the oil produced in Canada and the United States. In recent years, the company shifted its growth strategy to other segments to take advantage of emerging opportunities. Enbridge purchased an oil export terminal in Texas. It is also a partner on the Woodfibre liquified natural gas (LNG) export facility being built in British Columbia. Enbridge also expanded its renewable energy group through the purchase of a wind and solar energy project developer. Finally, Enbridge became the largest operator of natural gas utilities in North America through its US$14 billion acquisition of three natural gas utilities in the United States last year.

On the development side, Enbridge is working on a $28 billion capital program to drive additional revenue and earnings growth over the medium term. Investors will want to look for any news on a potential increase to the capital plan when the second-quarter (Q2) 2025 earnings come out on July 31. Enbridge recently announced a US$900 million solar project in Texas.

Enbridge raised the dividend in each of the past 30 years with a compound annual growth rate of about 9% over that timeframe. Earnings expansion from acquisitions and development projects should support ongoing dividend hikes.

Canadian Natural Resources

Canadian Natural Resources (TSX: CNQ) is arguably a contrarian pick right now due to the slump in oil prices. The stock trades near $44 at the time of writing, compared to a high of around $55 last year. Oil and natural gas producers rely on commodity prices to determine margins, so there can be more volatility in the share prices on big moves in the energy markets.

That being said, CNRL has managed to raise its dividend annually for the past 25 years. Successful drilling and timely acquisitions have enabled the company to steadily boost production. CNRL’s operations are very efficient, so it is able to generate profits at low energy prices. For example, the company says its West Texas Intermediate (WTI) breakeven price is around US$40 to US$45 per barrel. WTI currently trades near $69 per barrel, so margins are still good.

CNRL is also a large natural gas producer. Demand and pricing for Canadian natural gas could rise considerably in the coming years as new LNG export facilities are completed, giving producers access to more lucrative international markets.

Investors who buy CNRL at the current price can get a dividend yield of 5.35%. The strong balance sheet enables the board to maintain dividend growth during challenging market conditions.

The bottom line

Enbridge and CNRL pay attractive dividends that should continue to grow. If you have some cash to put to work in a TFSA targeting passive income, these stocks deserve to be on your radar.

The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned.

More on Dividend Stocks

Three children jump on an outdoor trampoline
Dividend Stocks

The RESP Deadline is December 31: Ottawa Adds 20% for Free

An affordable RESP contribution can attract a 20% basic grant, with December timing, catch-up limits, and the child's age shaping…

Read more »

jar with coins and plant
Dividend Stocks

Dividend Stocks or Annuities for Retirement Income?

Here's how Canadian dividend stocks and annuities compare as retirement income sources

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

Is TELUS a Good Stock to Buy After Finally Cutting its Dividend?

TELUS cut its dividend 55%, but still offers you a tasty dividend yield of 6.3%. Is the Canadian blue-chip stock…

Read more »

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Dividend Stocks

Mortgage Rates Are Rising: The Bank of Canada Hasn’t Moved

Fixed mortgage rates can rise without a central-bank move, adding real monthly costs while also testing lenders' funding and credit…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How I’d Structure My $14,000 TFSA for Constant Income

If you have $14,000 saved in your TFSA, here is one easy investment strategy to earn $50 of tax-free monthly…

Read more »

woman looks at iPhone
Dividend Stocks

I’m Not Selling Telus After the 55% Dividend Cut: Here’s Why

Contrary to what the market seems to be saying, Telus Corporation (TSX: T) still has a lot going for it.…

Read more »

monthly calendar with clock
Dividend Stocks

A No-Nonsense 3.7% Dividend Stock That Can Pay Retirees Monthly

This no-nonsense dividend stock has returned more than $3.4 billion to shareholders through dividends since 2013.

Read more »

dreaming of financial success
Dividend Stocks

3 Questions to Ask Before Buying a Dividend Stock

Buying a dividend stock? Here are three questions to help you look beyond the yield, with examples from Enbridge, Fortis…

Read more »