Canadian investors are searching for good stocks to own inside their self-directed Tax-Free Savings Account (TFSA) portfolios.
In the current market conditions, where the TSX sits near a record high and uncertain economic conditions persist amid the ongoing trade issues with the United States, it makes sense to consider stocks that will pay you a steady dividend through challenging times.
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Fortis
Fortis (TSX:FTS) is a great example of a top TSX dividend-growth stock that TFSA investors can simply sit on for decades.
The utility company operates $75 billion in assets spread out across Canada, the United States, and the Caribbean. Businesses in the portfolio include power generation facilities, natural gas distribution utilities, and electricity transmission lines. Power and fuel are required by homes and businesses regardless of the state of the economy, so Fortis should be a good defensive stock for investors to hold during a recession.
Fortis is working on a capital program of close to $29 billion that will boost the rate base from $42 billion to $58 billion over five years. The incremental revenue and cash flow coming from the new assets as they are completed and go into service should support planned annual dividend increases of 4% to 6% through 2030. Fortis increased the dividend in each of the past 52 years, so investors should be comfortable with the guidance.
At the time of writing, Fortis provides a dividend yield of 3.5%.
Enbridge
Enbridge (TSX:ENB) spent US$14 billion in 2024 to buy three natural gas utilities in the United States. The deals turned Enbridge into the largest natural gas utility operator in North America and further diversified the revenue stream.
Enbridge’s core oil and natural gas pipeline businesses still remain very important, and expansion of the assets continues. Enbridge recently announced a US$1.8 billion project to boost capacity on its Mainline system. Brownfield projects are easier to complete than new major oil pipelines, and Enbridge is taking advantage of its unique position in the market to deliver upgrades to address demand from energy producers.
In the past few years, Enbridge has also purchased an oil export terminal in Texas and bulked up its renewables division with the acquisition of an American solar and wind project developer.
Across the asset portfolio, Enbridge is working on $35 billion in capital projects. Management expects the new assets to drive 3% to 5% annual growth in distributable cash flow over the medium term. This should enable Enbridge to extend its dividend growth streak, which currently sits at 30 years.
Investors who buy ENB stock at the current level can get a dividend yield of 5.6%.
Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) is making good progress on its turnaround plan, which includes shifting its growth focus from Latin America to the United States and Canada. Bank of Nova Scotia purchased a 14.9% stake in KeyCorp, an American regional bank, last year and sold its operations in Colombia, Costa Rica, and Panama in early 2025. The bank is also streamlining operations to improve efficiency and reduce operating expenses.
BNS has enjoyed a nice rally over the past six months. More upside could be on the way for the stock as the strategy transition continues. Investors who buy at the current price can get a dividend yield of 4.6%.
The bottom line
Fortis, Enbridge, and Bank of Nova Scotia pay attractive dividends that should continue to grow. If you have some cash to put to work in a TFSA, these stocks deserve to be on your radar.
