TFSA Passive Income: 2 TSX Stocks to Own for Dividend Growth

These stocks have increased their dividends annually for the past 25 years.

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TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.

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Key Points

  • Income investors should look for stocks with long histories of dividend growth.
  • TC Energy has a large capital program on the go to drive cash flow expansion.
  • Canadian Natural Resources generates strong profits through efficient operations and production growth.

Canadian pensioners and other income investors are searching for reliable dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolios.

In the current market conditions, where the TSX sits near its record high and economic headwinds could be on the horizon, it makes sense to consider stocks with long track records of delivering steady dividend growth through the full economic cycle.

TC Energy

TC Energy (TSX:TRP) trades near $76 per share at the time of writing compared to $50 two years ago.

The rally began around the time the Bank of Canada and the U.S. Federal Reserve signalled they were done raising interest rates in their battle to get inflation under control. TC Energy uses debt to fund its large capital projects that often cost billions of dollars and can take years to complete. The subsequent cuts to rates last year and in 2025 have helped reduce borrowing costs.

Investors have also returned to the stock after TC Energy shored up its balance sheet through the monetization of some non-core assets. The company had to take on extra debt at a bad time to get its Coastal GasLink pipeline completed. The project’s budget more than doubled to above $14 billion, but the pipeline is now in commercial operation and generating revenue.

TC Energy fared better with its Southeast Gateway pipeline in Mexico, which came in 13% under budget and began operation earlier this year.

Looking ahead, TC Energy’s ongoing capital program is expected to be $6 billion to $7 billion per year over the medium term. Management sees good potential for additional natural gas pipeline projects in Canada and the United States, as demand for natural gas is expected to rise with the construction of gas-fired power generation facilities needed to provide electricity to new AI data centres.

TC Energy reported solid results for the first nine months of 2025 with comparable earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations rising to $7.9 billion from $7.4 billion.

TC Energy raised the dividend in each of the past 25 years. Investors who buy TRP stock at the current level can get a dividend yield of 4.4%.

Canadian Natural Resources

Canadian Natural Resources (TSX:CNQ) is down nearly 20% from the 2024 high as a result of lower oil and natural gas prices. This is part of the normal commodity cycle, and weakness in the energy market could persist for some time due to rising supply and tepid global oil demand.

That being said, investors can take advantage of the pullback to buy CNQ at a discounted price and pick up a current dividend yield of 5.2%. The board raised the dividend in each of the past 25 years.

CNRL continues to generate rising profits, even in the challenging market conditions. Adjusted net earnings from operations in the first three quarters of 2025 rose to $5.73 billion from $5.44 billion in the first nine months of 2024. The company is using its strong balance sheet to add production through acquisitions and successful drilling activity across its portfolio of assets. CNRL is well known for its oil sands assets, but is also a major producer of conventional light and heavy oil, offshore oil, and natural gas.

Expansion of oil and natural gas pipeline capacity in Canada is already helping CNRL, and the company will benefit from any new projects that get the green light in the next few years.

The bottom line

TC Energy and CNRL pay attractive dividends that should continue to grow. If you have some cash to put to work in an income portfolio, these stocks deserve to be on your radar.

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

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