Dividend investors are wondering which top TSX stocks might still be attractive and good to own inside a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan portfolio.
With Canada embarking on a mission to develop a national power grid and become an energy export powerhouse, it makes sense to consider companies that should benefit from these anticipated investments. At the same time, new gas-fired power stations and renewable energy installations will be required to supply power to AI data centres being built in the United States and Canada.
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Fortis
Fortis (TSX:FTS) is a Canadian utility company with power generation facilities, electricity transmission networks, and natural gas distribution utilities located in five provinces, 10 American states, and Caribbean countries.
Fortis is working on a $28.8 billion capital program that will increase the rate base by a compound annual rate of about 7% through 2030. As new assets are completed and go into service, the boost to cash flow should support planned annual dividend increases in the 4% to 6% range. Fortis has expertise in building and managing electricity grids, so it would be a prime candidate to participate in any new expansion of the national power infrastructure.
Fortis raised the dividend in each of the past 52 years.
TC Energy
TC Energy (TSX:TRP) is primarily a natural gas storage and transmission company, but also has power generation facilities. The company’s extensive natural gas pipeline infrastructure in Canada, the United States, and Mexico puts TC Energy in a good position to benefit from rising natural gas demand as new gas-fired power generation facilities are built.
TC Energy intends to spend about $6 billion per year over the next five years on capital projects to drive earnings growth. The board has increased the dividend annually for 26 consecutive years. Investors can currently get a 4% dividend yield from TRP.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is a Canadian oil and natural gas giant with production and reserves that include oil sands, light and heavy conventional oil, offshore oil, natural gas liquids, and natural gas.
The company has the size and financial clout to make large strategic domestic acquisitions to boost production and reserves, while also growing output through successful drilling programs. The board has increased the dividend for 25 consecutive years. The current dividend yield is 4%.
CNRL would benefit from any new oil export capacity that is built in Canada.
Enbridge
Enbridge (TSX:ENB) is known for its oil pipeline infrastructure, but it also has extensive natural gas storage and transmission assets. In addition, Enbridge has expanded its portfolio in recent years to become a major natural gas utilities operator, as well as an energy exporter. Wind and solar projects round out the holdings.
Enbridge is working on a $39 billion capital program that will drive steady growth in distributable cash flow over the next few years. This should support ongoing dividend increases. Enbridge raised the payout in each of the past 31 years. The current dividend yield is 5.3%.
BCE
BCE (TSX:BCE) is a contrarian pick right now. The stock took a beating over the past few years, and management decided to cut the dividend in 2025 to preserve cash flow to help reduce debt and fund investments.
Better days, however, should be on the horizon. BCE’s $5 billion purchase of Ziply Fiber in the United States gives it a platform for expansion that isn’t available in Canada. At the same time, the media division is benefiting from the popularity of Heated Rivalry, a hit TV series. On the AI front, BCE is investing in technology and infrastructure to be a key provider of AI corporate services targeting sovereign data protection for Canadian businesses and government entities.
Investors who buy BCE stock at the current price can get a dividend yield of 4.9%.
The bottom line
Fortis, CNRL, TC Energy, Enbridge, and BCE are leaders in their respective sectors and all pay attractive dividends. If you have some cash to put to work, these stocks deserve to be on your radar.
