One of the smartest ways to use your Tax-Free Savings Account (TFSA) is to fill it with quality dividend stocks that not only pay consistently but also increase their payouts over time. When those dividends grow inside a tax-sheltered account, the compounding becomes incredibly powerful. This way, you could build a reliable, tax-free income for retirement and even achieve early financial independence.
Instead of following a complex strategy, you can simply buy fundamentally strong, large companies with long-term earnings power, let them pay you, and either spend or reinvest the income tax-free. In this article, I’ll talk about two high-quality Canadian dividend stocks that could be ideal for most TFSA investors focused on a long-term passive income.
Brookfield Asset Management stock
Speaking of dependable dividend payers, Brookfield Asset Management (TSX: BAM) could be a smart long-term holding for TFSA investors seeking income and growth. As one of the world’s largest alternative asset managers, it has over US$1 trillion in assets under management. The company focuses on real assets such as infrastructure, renewable power, private equity, real estate, and credit – sectors that act as the backbone of the global economy.
BAM stock currently trades around $72.65 per share, giving it a market cap of roughly $118.9 billion. At this market price, it offers an annualized dividend yield of about 3.3%, paid quarterly. Although the stock hasn’t seen much appreciation of late, its long-term growth prospects remain strong.
In the third quarter of 2025, BAM posted a solid 17% YoY (year-over-year) increase in its fee-related earnings to US$754 million, while its distributable earnings climbed 7% from a year ago to US$661 million. During the quarter, the company achieved record fundraising of US$30 billion, pushing its fee-bearing capital up by 8% YoY.
Meanwhile, Brookfield is also pushing into artificial intelligence (AI) infrastructure. The company recently launched a US$100 billion AI Infrastructure Program with partners like NVIDIA and KIA. These developments clearly reflect its intention to lead the next wave of innovation-driven asset management.
Along with its stable dividend and growing distributable earnings, BAM’s capital-efficient model and deep expertise across essential sectors make it a solid choice for TFSA investors looking for consistent passive income.
Canadian Natural Resources stock
If you’re looking for a more traditional dividend powerhouse, Canadian Natural Resources (TSX: CNQ) could be a great fit. As one of the largest oil and natural gas producers in Canada, it has operations stretching across Western Canada, the North Sea, and offshore Africa.
After rallying by 31% over the last year, CNQ stock is currently trading near $47.67 per share with a market cap of about $99.3 billion. It also rewards investors with quarterly dividends, with an annualized yield of roughly 5%.
In the latest quarter, Canadian Natural’s revenue rose 7% YoY, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 15%. Despite softer commodity prices, the company’s margins improved as it focused on efficiency and reduced costs.
Moreover, CNQ has a long history of rewarding shareholders, including 25 consecutive years of dividends, backed by robust free cash flow generation. Given all these positive factors, coupled with its high yield, strong cash flow, and disciplined execution, CNQ continues to be among the top Canadian dividend stocks for TFSA investors seeking passive income.
