One of the most important factors that help in deciding which Canadian stocks to keep in a Tax-Free Savings Account (TFSA) is dividend durability. It’s not just about grabbing a high yield today. It’s more about holding fundamentally strong stocks that have what it takes to continue rewarding you for years. That’s especially true when you’re aiming for income that grows tax-free.
So in this article, I’ll share three top Canadian dividend stocks that fit perfectly into a TFSA strategy built for consistent, long-term income.
Source: Getty Images
Suncor Energy stock
Let’s begin with Suncor Energy (TSX:SU), one of the most reliable Canadian energy stocks that continue to deliver strong income even in a challenging time. Based in Calgary, SU stock trades at $53.27 per share with a market cap of $64.6 billion. Investors collecting dividends from this stock currently enjoy an annualized yield of 4.2%, paid quarterly.
In the second quarter, Suncor reported record upstream production of 808,000 barrels per day and refinery throughput of 442,000 barrels per day. More importantly, Suncor returned $1.5 billion to shareholders in just one quarter through dividends and share repurchases.
With long-life assets, steady cash generation, and a focus on both capital discipline, this dividend stock continues to be a reliable income-generating pick for TFSA investors.
Bank of Nova Scotia stock
Now, let’s move from energy to banking, where this next stock offers both yield and long-term value. The Bank of Nova Scotia (TSX:BNS), better known as Scotiabank, is one of Canada’s largest and most globally diversified banks.
After rallying 22% over the last year, BNS stock currently trades at $78.53 per share with a market cap of $97.6 billion. It offers one of the higher dividend yields among Canadian banks at 5.6%, paid quarterly.
Despite ongoing macro uncertainty, Scotiabank has delivered stable financial results. In the April 2025 quarter, the bank’s adjusted net income came in at $2.1 billion, slightly down from the $2.1 billion it earned a year ago. The drop came mainly from increased provisions for credit losses, especially on performing loans, which rose to $346 million amid economic softness and uncertainty around tariffs.
Nevertheless, its international banking grew adjusted earnings by 7% YoY (year-over-year), and global wealth management rose 17% thanks to stronger mutual fund and brokerage revenues.
Despite short-term earnings pressure, Scotiabank increased its quarterly dividend to $1.10 per share. With a stable business model, diversified revenue streams, and an attractive yield, Scotiabank fits well into any income-focused TFSA portfolio.
Algonquin Power & Utilities stock
Finally, let’s talk about a utilities stock that offers income and long-term transformation potential. As you might already know, Algonquin Power & Utilities (TSX:AQN) operates a diversified portfolio of regulated electric, water, and natural gas utilities across North America.
After rallying 26% year-to-date, AQN stock now trades at $8.02 per share with a market cap of $6.2 billion. At current levels, it offers a 4.4% annualized dividend yield.
In the latest quarter, Algonquin’s earnings from its hydro group rose significantly YoY, while its regulated services saw a small dip, mostly due to weather normalization and one-time gains in the previous year. On a positive note, the company saw improved earnings quality and cost controls start to take effect.
As part of its strategic shift, Algonquin is targeting organic utility growth under its “Back to Basics” plan. With this plan, it aims to invest US$2.5 billion in capital projects through 2027 without issuing new equity. It also expects adjusted net earnings per share to grow steadily to a range of US$0.42–US$0.46 by 2027.
With a renewed focus on regulated utilities and a clear path to long-term growth, Algonquin remains an appealing TFSA stock for income-focused investors.
