TFSA: Invest $14,000 in This TSX Stock and Create $784 in Annual Passive Income

Investing $14,000 in high-quality dividend stocks inside your Tax-Free Savings Account (TFSA) can help create significant annual passive income. Because any dividends earned in a TFSA are not taxed, every dollar of income stays in your pocket or can be reinvested.  

Notably, several TSX stocks have been paying and increasing their dividends for decades, making them reliable investments to generate regular income across market conditions. These are fundamentally strong companies with resilient payouts.

Against this background, here is a dependable income stock to consider now.

A top TSX dividend stock for worry-free passive income

For investors seeking dependable passive income, Enbridge (TSX:ENB) is an attractive choice for its reliable dividend. The energy transportation company has been paying dividends for more than 70 years through multiple commodity cycles and economic downturns. In addition, Enbridge has increased its annual dividend every year since 1995, which shows the durability of its business model.

The energy infrastructure company generates revenue from highly diversified sources, which helps smooth out volatility and supports its distributable cash flow (DCF). Unlike many energy companies that are exposed to swings in oil and gas prices, Enbridge’s earnings are largely insulated from commodity risk. Nearly all of its earnings before interest, taxes, depreciation, and amortization (EBITDA) come from regulated assets or long-term, take-or-pay contracts, which provide stability and drive its cash flow.

Inflation protection is another key advantage. Approximately 80% of Enbridge’s EBITDA is indexed to inflation. Further, its vast network of pipelines and energy infrastructure connects major supply and demand hubs across North America, resulting in high asset utilization and positioning Enbridge to benefit from ongoing energy demand regardless of short-term market conditions.

Thanks to its resilient business and solid earnings base, Enbridge announced a 3% increase to its quarterly dividend in December last year. The payout will rise to $0.97 per share, or $3.88 annually, beginning March 1, 2026. At current prices, that translates into an attractive dividend yield of about 5.6%, making Enbridge a compelling option for investors looking for worry-free, long-term income.

Enbridge stock: Earn about $784 in annual passive income

Enbridge’s diversified revenue base and steady momentum across its core liquid pipeline and regulated utility businesses will help generate steady earnings and DCF per share, supporting its payouts. Further, the company targets a payout ratio of 60% to 70% of DCF, which is sustainable in the long run and allows Enbridge to capitalize on growth opportunities.

Enbridge is also well-positioned to benefit from rising energy demand. Its investments in renewable energy and low-carbon infrastructure give the company exposure to structural growth trends, including rising electricity consumption from AI-driven data centres. At the same time, Enbridge is benefiting from the global energy transition through opportunities such as coal-to-gas conversions.

Enbridge projects its earnings and DCF per share to grow at a mid-single-digit pace over the medium term. This guidance suggests that its dividend will continue to grow at a similar rate.

In summary, Enbridge’s resilient cash flows, strong visibility into future earnings and DCF, and commitment to rewarding shareholders make it a compelling passive-income stock to hold in a TFSA.

TFSA investors can buy about 202 Enbridge stocks with a $14,000 investment (based on its closing price of $69.25 on February 10). Those shares would generate about $195.94 in tax-free passive income every quarter, or roughly $783.76 annually.