Retirees and other income investors are searching for good Canadian dividend stocks to add to their self-directed Tax-Free Savings Account portfolios.
In the current market conditions, where the TSX is near a record high and tariffs threaten to cause a recession, it makes sense to look for companies that have demonstrated an ability to deliver dividend growth through challenging economic situations.
Enbridge
Enbridge (TSX:ENB) trades near $62.50 per share at the time of writing. The stock is down from the 2025 high of around $65, so investors have a chance to buy ENB on a bit of a dip.
Enbridge is a giant in the energy infrastructure and utility sectors. The company is now the largest operator of natural gas utilities in North America after completing a US$14 billion purchase of three American natural gas utilities in 2024. These assets complement Enbridge’s extensive natural gas transmission network of pipelines and storage facilities. Natural gas demand is expected to rise steadily in the next few years as gas-fired power facilities are built to provide electricity to artificial intelligence data centres.
Enbridge has also expanded its renewable energy division. It acquired the third-largest solar and wind developer in the United States to boost its renewable capabilities. The group recently announced plans to build a new US$900 million, 600 megawatt solar site in Texas.
On the export side, Enbridge purchased an export terminal in Texas and is a partner on the Woodfibre liquified natural gas (LNG) export facility being built on the coast of British Columbia. International demand for North American energy is rising as countries seek out reliable sources from stable suppliers.
Enbridge’s oil pipeline network remains strategically important to the smooth operation of the Canadian and U.S. economies. The company moves about 30% of the oil produced in the two countries. Canada’s new push to reduce its reliance on the U.S. for its oil sales could lead to new oil pipelines being built to supply international markets. Enbridge would be a top candidate to build and operate new oil pipeline infrastructure in the country.
Enbridge is working on a $28 billion capital program that will help drive earnings and distributable cash flow higher to support dividend growth. The board increased the dividend in each of the past 30 years. Investors who buy ENB stock at the current price can get a dividend yield of 6%.
Telus
Telus (TSX:T) trades near $22 per share at the time of writing, compared to $34 at one point in 2022. The stock is arguably a contrarian pick right now as the telecom sector faces a variety of challenges, including reduced immigration and high interest rates. Telus uses a lot of debt to fund its capital program. Higher debt expenses can put pressure on cash that is available for distributions. The reduction in newcomers to Canada will lead to lower sales of new devices and slower subscription growth in the industry. This might be why Telus and its peers fought a price war last year that squeezed industry margins.
Despite the challenges, Telus remains optimistic and continues to deliver decent financial results. Management expects free cash flow to remain robust enough in the next few years to support planned annual dividend increases of 3% to 8%. Investors who buy Telus stock at the current price can get a dividend yield of 7.5%.
The bottom line
Enbridge and Telus 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.
