Canadian pensioners are searching for good dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) focused on generating reliable passive income.
The TSX is near its record high and valuations are stretched in some sectors, but investors can still find dividend stocks offering attractive yields and trading at reasonable prices.
Telus
Telus (TSX:T) is a contrarian pick right now. The communications provider’s stock took a beating over the past four years, falling from $34 to below $18 late in 2025. Bargain hunters, however, have started to buy Telus in 2026 on the hopes of a rebound. The stock is up 4% so far this year.
Price wars for mobile and internet subscribers appear to be over. This should shore up margins at Telus and its peers. At the same time, Telus is making progress on its plan to reduce debt. The company sold a 49.9% stake in its wireless tower business last year and is looking for options to monetize its Telus Health division. Lower interest rates are helping reduce debt expenses.
Management recently put dividend increases on hold to stem the slide in the share price. Telus is also winding down its discount offered on shares purchased using the dividend reinvestment plan (DRIP).
As long as revenue holds up and the company succeeds in reducing debt to the target level, the dividend should be safe. Investors who buy Telus at the current price can get a dividend yield of 8.9%.
Enbridge
Enbridge (TSX:ENB) trades near $65 per share at the time of writing. The stock is down about $5 over the past five months. This gives investors who missed the big rebound in 2024 and 2025 a chance to pick up the energy infrastructure giant on a pullback.
Enbridge continues to grow through a combination of strategic acquisitions and organic projects. The company spent US$14 billion in 2024 to buy three natural gas utilities in the United States. These assets, when combined with the existing natural gas transmission infrastructure, position Enbridge to benefit from the anticipated rise in natural gas demand as new gas-fired power generation sites are built to provide electricity for AI data centres.
Enbridge is working on $35 billion in secured capital projects to drive additional growth in revenue and distributable cash flow. This should support ongoing dividend increases. Enbridge raised the dividend in each of the past 31 years. Investors who buy ENB stock at the current price can get a dividend yield of 6%.
Fortis
Fortis (TSX:FTS) has increased its dividend for 52 consecutive years. That’s the kind of reliability retirees want to see when choosing a dividend stock for an income portfolio.
Fortis gets most of its revenue from rate-regulated businesses, including natural gas distribution utilities, power generation facilities, and electricity transmission networks. Demand for electricity and natural gas is rising in Canada and the United States. This bodes well for Fortis.
The company’s current $28.8 billion capital program is expected to boost the rate base by about 7% per year over five years. This should deliver rising revenue and cash flow to support planned annual dividend increases of 4% to 6% through at least 2030.
Investors who buy Fortis at the current share price can get a dividend yield of 3.5%. That’s lower than the yield available from other stocks, but the dividend growth steadily increases the yield on the initial investment and Fortis should be a good stock to own when the market goes through some turbulence.
The bottom line
Telus, Enbridge, and Fortis trade at reasonable prices and pay attractive dividends. If you have some cash to put to work in a portfolio focused on dividend income these stocks deserve to be on your radar.
