Tax-Free Savings Account (TFSA) investors seeking passive income can still find TSX dividend stocks trading at reasonable prices.
In the current market conditions, it is a good idea to look for companies that are leaders in their respective industries and have solid track records of delivering steady dividend growth.
Source: Getty Images
Fortis
Fortis (TSX:FTS) is a Canadian utility company with about $75 billion in assets spread out across Canada, the United States, and the Caribbean.
The businesses include natural gas distribution utilities, power generation facilities, and electric transmission networks. These are primarily rate-regulated assets providing essential services that are required regardless of the state of the economy. Revenue and cash flow tend to be predictable, which helps Fortis plan its growth program.
The current five-year capital plan will see Fortis invest nearly $29 billion in organic growth projects. This will boost the rate base from approximately $42 billion in 2025 to nearly $58 billion in 2030. As the new assets are completed and start to generate revenue, the boost to cash flow should support planned dividend increases of 4% to 6% annually over the next three years and the next five years. That’s the kind of guidance income investors want to see when evaluating stocks to buy for a dividend portfolio.
Fortis has increased the dividend for 52 consecutive years. The current dividend yield is 3.5%. Investors can find other stocks with higher yields, but the reliability of the dividend growth is as important to consider as the yield at the time of the initial investment.
Enbridge
Enbridge (TSX:ENB) just announced a US$1.4 billion expansion to its core oil transmission network. The additional capacity will expand access for Canadian oil producers to refineries in the United States.
In the third-quarter (Q3) 2025 earnings report, Enbridge indicated it has $35 billion in secured capital projects on the go that will help drive steady revenue and cash flow growth for several years. This is in addition to the contributions that come from any new acquisitions. Enbridge has actively pursued new assets in recent years to take advantage of emerging opportunities in the energy market. The company purchased an oil export terminal in Texas and is a partner on the Woodfibre liquified natural gas (LNG) export facility under construction in British Columbia. Enbridge also bulked up its renewables division with the purchase of a U.S. wind and solar developer. On the utilities side, Enbridge spent US$14 billion in 2024 to buy three natural gas utilities in the United States. The deals made Enbridge the largest natural gas utility operator in North America.
Enbridge is targeting post-2026 distributable cash flow growth of about 5% per year. This should support ongoing dividend increases. The board has increased the dividend for 30 consecutive years. Investors who buy ENB at the current price can get a dividend yield of 5.6%.
The bottom line
Fortis and Enbridge have enjoyed nice recoveries over the past two years after going through an extended pullback that was caused by rising interest rates. While the easy money has likely already been made, more upside should be on the way as assets and cash flow expand.
If you have some cash to put to work, these stocks deserve to be on your radar right now for a buy-and-hold portfolio focused on passive income.
