4.6% Dividend Yield! This Profit Generator Never Quits

Investors looking to benefit from a growing dividend payout should consider gaining exposure to blue-chip stocks such as TC Energy.

Aditya Raghunath

Aditya Raghunath joined the Motley Fool Canada team in 2019 and has close to seven years of experience in covering publicly-listed companies. With a post-graduate degree in finance, Aditya aims to educate and engage Canadians by writing extensively about growth, dividend, and value stocks. If you are considering investing in the stock market, he recommends reading The Intelligent Investor by Benjamin Graham before taking the plunge.

Published November 26, 2025 10:30 am EST

Investing in blue-chip stocks that offer attractive dividends allows shareholders to build a low-cost passive income stream. In addition to steady income, the best dividend stocks also boost returns through long-term capital gains.

One such top TSX stock is TC Energy (TSX:TRP), which offers you a forward yield of 4.6% in November 2025. Valued at a market cap of almost $80 billion, TC Energy stock has returned 111% to shareholders over the past decade. However, if we account for dividend reinvestments, cumulative returns are closer to 210%.

Let’s see why this TSX dividend stock should be on your watchlist right now.

Concept of multiple streams of income — Source: Getty Images

The bull case for the TSX dividend stock

TC Energy operates one of North America’s largest energy infrastructure portfolios, positioning it as a critical player in powering daily life across the continent. The Calgary-based energy giant manages a massive 93,600-kilometre natural gas pipeline network that supplies over 30% of the clean-burning natural gas consumed daily in North America for heating homes, fueling industries, and generating power.

The company’s diversified business model extends beyond pipelines into power generation, where it maintains approximately 4,650 megawatts of capacity. Over 75% of this power is generated from low-carbon sources, including nuclear and renewable energy. This positions TC Energy favourably, as natural gas plays a vital role in the energy transition aimed at displacing coal-fired power.

TC Energy delivered strong third-quarter results while expanding its growth pipeline. It announced $700 million in new projects, increasing its total sanctioned capital to $5.1 billion in the last 12 months.

TC Energy grew its comparable EBITDA (earnings before interest, tax, depreciation, and amortization) by 8% in the first nine months of 2025, while placing $8 billion of assets into service.

CEO Francois Poirier emphasized TC Energy’s improving project returns, with the sanctioned portfolio now delivering a weighted average unlevered after-tax return of approximately 12.5%, up meaningfully from 8.5% just a few years ago.

All new projects maintain build multiples in the attractive five to seven times range without taking on additional risk, staying focused on brownfield expansions along existing corridors with long-term utility and investment-grade customers.

The company set 14 new records for natural gas pipeline flow across its systems in 2025, reflecting accelerating demand driven by electrification, liquefied natural gas (LNG) exports, and data centre expansion. Management raised its natural gas demand forecast by five billion cubic feet (Bcf) per day, now projecting a 45 Bcf per day increase by 2035. TC Energy’s strategic position allows it to deliver natural gas to every major LNG export shoreline in North America while moving approximately 30% of all feed gas bound for LNG facilities.

Management reaffirmed 2025 comparable EBITDA guidance showing 7% to 9% growth and provided 2026 guidance of 6% to 8% growth. Looking further ahead, TC Energy projects 5% to 7% EBITDA growth through 2028, targeting a comparable EBITDA of $12.6 billion to $13.1 billion.

The company expects to achieve its long-term leverage target of 4.75 times debt-to-EBITDA while funding approximately 80% of capital requirements with operating cash flows.

Is the TSX stock still a good buy right now?

Since 2000, the TSX dividend stock has delivered an average annual return of 12% to shareholders. The energy giant has grown its asset base from $25 billion to over $100 billion during this period, while raising its annual dividend from $0.85 per share to $3.40 per share in 2025, which indicates a forward yield of 4.6%.

Management projects continued dividend growth of 3% to 5% annually, supported by its portfolio of complementary infrastructure assets and secured growth projects. Analysts tracking the energy heavyweight forecast the annual dividend to increase to $3.77 per share in 2029.

Bay Street forecasts TC Energy to expand adjusted earnings per share from $3.52 in 2025 to $4.43 in 2029. If the stock trades at 20 times forward earnings, it should gain over 20% in the next three years. If we adjust for dividends, cumulative returns should be closer to 35%.