Transform Your TFSA Into a Cash-Crushing Machine With Just $30,000

Just $30,000 and two carefully chosen dividend stocks could kickstart your TFSA income journey.

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Key Points

  • Your TFSA can work like a mini pension if you pick the right income-generating stocks.
  • Enbridge (TSX:ENB) has raised its dividend for 31 years and offers over 6% yield right now.
  • Capital Power (TSX:CPX) is locking in long-term cash flows with new deals through 2047.

Your Tax-Free Savings Account (TFSA) has the potential to act like a mini pension — paying you quarter after quarter, year after year, all tax-free. All it takes is $30,000 and carefully selected dividend stocks to get started. I’m talking about stocks known for their durable business models, dependable dividends, and unshakeable commitment to shareholder returns.

In this article, we talk about two stocks that can anchor a cash-flow-focused TFSA strategy — and show how even a modest investment could grow into a reliable, long-term income stream you can count on.

Enbridge stock

Enbridge (TSX:ENB) is a great Canadian dividend stock that can quietly power your TFSA for years, due mainly to its massive footprint in North American energy infrastructure and solid dividend growth track record. The company currently trades at $64.23 per share and has a market cap of around $140 billion.

What makes it attractive for income-seeking investors is its annualized dividend yield of just over 6%, paid quarterly. That dividend hasn’t only held steady — it’s been growing for 31 consecutive years, backed by its resilient business model that continues to generate cash through economic cycles.

In its most recent quarter ending September 2025, Enbridge reported $14.6 billion in revenue, slightly lower YoY (year-over-year), as weaker commodity pricing dragged results. Nevertheless, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 1.6% YoY to $4.3 billion, reflecting stronger cost controls and operational efficiency.

Despite near-term softness in financials, Enbridge has been steadily growing its adjusted earnings and net profit over the past five years. And its consistent free cash flow has supported dividend growth and long-term capital projects — making it a solid choice for TFSA investors seeking reliable dividend income.

Capital Power stock

My next dividend pick, Capital Power (TSX:CPX), offers a great mix of income and forward-thinking growth, making it an attractive stock for TFSA income. Shares of this Edmonton-based power producer currently trade at $61.23 per share with a market cap just under $9.6 billion. While its dividend yield sits at 4.5%, what makes it stand out is that the payout is backed by its long-term contracted cash flows and some serious expansion plans.

In the third quarter, the company delivered a strong 19% YoY jump in adjusted EBITDA of $477 million. A key contributor was its Midland Cogeneration Venture, which secured a new contract through 2040 with improved terms. Its battery storage projects in Ontario are also now online and contracted through 2047, which will help it lock in predictable income far into the future.

Beyond numbers, Capital Power is aiming for 8% to 10% annual growth in its per-share adjusted funds from operations through 2030 and is planning to expand U.S. capacity by 50%. For TFSA investors who want exposure to growing, future-proofed cash flows, Capital Power stock brings a strong mix of stability, yield, and growth potential.

COMPANYRECENT PRICENUMBER OF SHARESINVESTMENTDIVIDEND PER SHAREYEARLY PAYOUT
Enbridge$64.23233$14,966$0.97$904.0
Capital Power$61.23245$15,001$0.691$677.2
TOTAL$29,967$1,581.22
Prices as of Dec 16, 2025

Foolish bottom line

If you were to split a $30,000 TFSA investment evenly between Enbridge and Capital Power — about $15,000 in each — you’d be setting yourself up for an estimated $1,580 in annual dividends, completely tax-free. That’s the kind of passive income that can quietly build over time and reliably turn your TFSA into a true cash-crushing machine.

Fool contributor Jitendra Parashar has positions in Enbridge. The Motley Fool recommends Capital Power and Enbridge. The Motley Fool has a disclosure policy.

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