High-Yield Gems: 2 Dividend Stocks Canadian Retirees Should Consider

These stocks pay good dividends that should continue to grow.

Key Points
  • Investors can still find quality high-yield stocks in the TSX.
  • Enbridge has a large capital program on the go to drive cash flow higher.
  • Bank of Nova Scotia is making good progress on its turnaround strategy.

Pensioners and other income investors are searching for top TSX dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolios.

The big rally in the TSX over the past year has driven down yields on many stocks, but investors can still get attractive returns from solid companies.

Retirees sip their morning coffee outside.

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Enbridge

Enbridge (TSX: ENB) is up about 20% in the past 12 months, and has been on the rebound for more than two years.

The stock is benefiting from interest rate cuts in 2024 and 2025 after taking a hit in 2022 and 2023 when the Bank of Canada raised interest rates aggressively to get inflation under control.

Enbridge has also managed to drive growth in distributable cash flow through a combination of acquisitions and development projects. The current $39 billion capital program is expected to boost adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted earnings per share (EPS), and distributable cash flow by 5% per year starting in 2027.

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 level can get a dividend yield of 5.4%.

Enbridge has the size and financial clout to make additional acquisitions as the energy infrastructure industry consolidates. The company would also be a candidate to help build or operate any new major oil pipeline project if the Canadian government decides to support the construction of new capacity to move Alberta oil to the coast. Selling to global buyers is part of the national strategy to pivot from relying too heavily on the U.S. for sales of Canadian energy products.

Bank of Nova Scotia

Bank of Nova Scotia (TSX: BNS) is up 44% in the past 12 months, chalking up an impressive rebound after underperforming its peers in recent years.

The bank is making progress on a turnaround plan that will see the growth strategy shift from Latin America to the United States and Canada. Bank of Nova Scotia has already invested US$2.8 billion to acquire a 14.9% stake in KeyCorp, an American regional bank. The move gives Bank of Nova Scotia a good platform to expand its U.S. presence.

Last year, Bank of Nova Scotia sold its operations in Colombia, Costa Rica, and Panama. Investors will want to keep an eye on news updates and earnings reports to see if more monetization occurs in the Latin American operations.

Bank of Nova Scotia just reported a solid start to fiscal 2026 with fiscal Q1 adjusted net income coming in at $2.70 billion, compared to $2.36 billion in the same timeframe last year. Adjusted return on equity (ROE) rose to 13% from 11.8%. Higher ROE is a sign that the strategy reset is going well. This should help support the stock’s big move.

Investors who buy BNS stock at the current price can get a dividend yield of 4.25%.

The bottom line

Enbridge and Bank of Nova Scotia pay good dividends that should continue to grow. If you have some cash to put to work, these stocks deserve to be on your radar.

The Motley Fool recommends Bank Of Nova Scotia and Enbridge. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned.

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