If you have been using your Tax-Free Savings Account (TFSA) to grow your wealth steadily and safely, dividend investing must sit high on your priority list. Dividend income adds a sense of progress even when markets feel uncertain, and over long periods, that income can compound into something significant. The key is choosing fundamentally strong stocks with business models that support dependable payouts and consistent growth.
Utilities and power producers often fit that role well, especially as their long-term contracts and regulated assets boost their cash flows. In this article, I’ll talk about two top Canadian dividend stocks that could be gold for TFSA investors looking to lock in reliable income for the long term.
Fortis stock
Speaking of dependable payouts, Fortis (TSX:FTS) could be a logical place to start, especially given its regulated utility model and long-term growth visibility. The company mainly operates electric and gas utilities across Canada, the United States, and the Caribbean, providing essential services that remain in demand regardless of economic conditions.
Fortis stock recently traded around $74 per share, giving it a market capitalization of roughly $37.4 billion. Over the last year, the stock has jumped nearly 19% with the help of its focus on steady execution. It also offers an annualized dividend yield of 3.6%, which fits well with a long-term TFSA income strategy.
Notably, the company’s recent financial performance has been supported by consistent rate base expansion and disciplined capital investments. In the third quarter last year, Fortis delivered adjusted earnings of $0.87 per share, higher on a YoY (year-over-year) basis. This growth was mainly driven by rate base increases across several utilities and contributions from its major capital projects, with a stronger U.S. dollar also providing a tailwind. While costs tied to asset dispositions created some short-term pressure, the underlying business continued to look strong.
What strengthens Fortis’s long-term growth outlook is its recently announced $28.8 billion capital plan for 2026 through 2030, which supports an expected 7% annual rate base growth. The company also expects dividend growth of 4% to 6% annually through 2030. For TFSA investors focused on locking in income that steadily rises over decades, this combination of regulated growth and predictable dividends keeps Fortis firmly in the TFSA gold category.
Capital Power stock
While Fortis highlights regulated stability, Capital Power (TSX:CPX) could expand your TFSA income through contracted power generation and growing cash flows. This Edmonton-based firm owns and runs power generation and energy storage assets across North America, with an increasing focus on flexible generation backed by long-term agreements.
Following a 12% run over the last year, CPX stock recently traded near $58 per share, giving it a market cap of about $9.2 billion. The company also offers an attractive annualized dividend yield of 4.7%, making it appealing for income-focused TFSA investors.
In the latest quarter ended in September 2025, Capital Power generated adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $477 million and adjusted funds from operations of $369 million, backed by higher contracted cash flows and solid operating performance.
Long-term growth initiatives add further strength to its outlook. Recently, Capital Power secured a new long-term contract at the Midland Cogeneration Venture extending to 2040, adding years of incremental contracted revenue with improved pricing. The company also commissioned 170 megawatts of battery storage in Ontario, with contracts running through 2047, improving long-term cash flow visibility. Given these solid fundamentals, Capital Power could continue to act as TFSA gold for investors seeking durable income supported by long-duration contracts.
