Canadian pensioners are searching for good TSX dividend stocks to add to their self-directed Tax-Free Savings Accounts (TFSA) focused on generating steady passive income.
In the current market conditions with the TSX near a record high and tariff uncertainty impacting businesses, it makes sense to search for stocks that have good track records of delivering dividend growth through the full economic cycle.
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Fortis
Fortis (TSX:FTS) raised its dividend in each of the past 52 years. That’s a big reason for the stock’s steady upward trend over the long haul.
Fortis gets nearly all of its revenue from rate-regulated assets including power generation facilities, electric transmission networks, and natural gas distribution utilities. The company is working through a $28.8 billion capital program that will boost the rate base by roughly 7% per year over five years. As new assets are completed and go into service, the increased cash flow should support planned annual dividend increases of 4% to 6% through 2030.
Enbridge
Enbridge (TSX:ENB) has increased its dividend annually for more than three decades. The energy infrastructure and utilities giant is the largest natural gas utility operator in North America. Enbridge’s core oil and natural gas transmission networks are strategically important for the Canadian and U.S. economies. Enbridge also has energy export facilities and renewable energy assets.
The current $35 billion capital program is expected to generate 5% annual growth in distributable cash flow starting in 2027. This should support ongoing dividend increases. Investors who buy ENB stock at the current price can get a dividend yield of 5.7%.
Canadian National Railway
Canadian National Railway (TSX:CNR) just raised its dividend by 3%. This is the 30th consecutive annual increase to the payout.
CN’s share price has been under pressure for the past couple of years. Labour disputes at ports, wildfires, and tariff uncertainty have all impacted operations. Near-term trade turbulence should be expected, but the pullback in the stock gives investors a chance to buy CN at a discount.
CN remains very profitable and is using excess cash to repurchase shares while the shares are out of favour.
TC Energy
TC Energy (TSX:TRP) made good progress over the past two years in its efforts to monetize non-core assets to shore up the balance sheet. The company had to take on extra debt to complete its Coastal GasLink pipeline, which moves natural gas from Canadian producers to the new LNG Canada export facility in British Columbia.
TC Energy also spun off its oil pipelines division. This left the company focused on natural gas transmission and storage, as well as power generation. Rising demand for gas-fired electricity should bode well for TC Energy in the coming years, and new power-generation sites are built to provide electricity for AI data centres.
TC Energy is working on a $21 billion secured capital program through 2031. This should support steady dividend growth. The company raised the dividend in each of the past 26 years.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is a major oil and natural gas producer. The diversified assets and strong balance sheet have enabled the company to deliver annual dividend increases for the past 25 years.
Oil prices have been under pressure in the past 12 months, but CNRL continues to boost profits through higher production, acquisitions, and operating efficiencies.
Investors who buy CNQ stock at the current price can get a dividend yield of 4.5%.
The bottom line
Fortis, Enbridge, Canadian National Railway, TC Energy, and CNRL all pay good dividends that should continue to grow. If you have some cash to put to work in a TFSA targeting dividend income, these stocks deserve to be on your radar.
