3 Canadian Dividend Knights to Add to Your 2026 TFSA

Dividend knights look simple on the surface, but 2026 will reward investors who look a little deeper. In a Tax-Free Savings Account (TFSA), you want income you can actually keep, plus a business that can grow that income over time. That means a sustainable payout, a balance sheet that can handle higher-for-longer borrowing costs, and a valuation that does not force the dividend stock to be perfect just to do fine. You also want to avoid the trap of chasing the highest yield when the underlying business looks shaky. So let’s look at three to consider on the TSX today.

BNS

Bank of Nova Scotia (TSX:BNS) still fits the dividend knight label as it runs a massive, diversified banking platform and it tends to pay investors to wait. It earns money from Canadian banking, wealth, and capital markets, with an international footprint that can help in good times and complicate things in bad times. Over the past year, it has traded in a wide band, indicating the market is not fully settled on the story.

The earnings print shows why the story remains alive. In fiscal Q4 2025, Scotiabank reported net income of $2.2 billion and diluted earnings per share (EPS) of $1.65, but it also reported adjusted net income of $2.6 billion and adjusted diluted EPS of $1.93. Credit stays the key risk, and it raised provisions for credit losses to $1.1 billion in the quarter, so you cannot ignore the cycle. The forward dividend and yield are $4.40 and about 4.31%, respectively, which makes it feel like a practical TFSA building block.

POW

Power (TSX:POW) feels like a dividend knight for people who want broad exposure without buying a dozen separate names. It owns meaningful stakes in Great-West Lifeco and IGM Financial, plus alternative asset platforms under Sagard and Power Sustainable. Therefore it ties your TFSA to insurance, wealth, and asset management in one wrapper.

Its recent results also show real momentum under the hood. In Q3 2025, Power reported adjusted net earnings from continuing operations of $863 million, or $1.35 per share, up from $693 million, or $1.07 per share, a year earlier. It also reported adjusted net asset value per share of $72.24 at September 30, 2025, up sharply from $60.44 at the end of 2024. This helps explain why investors keep returning to the name. On valuation, it sits with a dividend yield around 3.5%, so it can work as a steady compounding pick rather than a flashy yield play.

RY

Royal Bank of Canada (TSX:RY) earns its knight status the old-fashioned way. It has scale, multiple fee engines, and the kind of capital strength that lets it keep investing through a downturn. The dividend stock has also had strong recent momentum, showing a 6-month gain of about 30% at writing.

The latest results explain that confidence. In Q4 2025, RBC reported net income of $5,434 million and diluted EPS of $3.76, and it reported adjusted net income of $5,554 million with adjusted diluted EPS of $3.85. For the full 2025 year, the bank reported net income of $20.4 billion and diluted EPS of $14.07, which is the kind of base you want behind a TFSA core holding.

Risks still matter, and provisions for credit losses hit about $1 billion in the quarter, so a softer economy could dent results. Even so, the valuation looks fairly normal for a top-tier bank, and it recently declared a quarterly $1.64 dividend hitting, and a current yield at 2.8%.

Bottom line

Put together, BNS, POW, and RY give a TFSA a very “Canadian” mix of income and resilience. In fact, here’s what $7,000 in each could bring in.

If your 2026 TFSA goal is steady tax-free income that can grow, these three dividend knights can help you get there without needing perfect timing.