For investors looking to put capital to work in their Tax-Free Savings Accounts (TFSAs) right now, there are plenty of great options to consider. Of course, high-yielding stocks should often be included in other registered retirement accounts, due to the tax benefits of doing so.
However, for some investors, holding dividend-paying stocks that are viewed as long-term capital appreciation plays as well may make sense. Right now, Enbridge (TSX: ENB) appeals to me as a top name that fits this description, particularly for those with long-term investing time horizons.
Here’s why I think Enbridge’s status as a leading dividend stock with a 5.3% yield shouldn’t dissuade investors from putting capital to work in this name in a TFSA right now.
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Reliability matters a great deal right now
Personally, I think we’re headed for a multi-year window of uncertainty. In some respects, this global uncertainty has already begun, reshaping the sorts of exposure/risk profiles investors want in their portfolios right now.
If the balance sheet stability and cash flow (and dividend) reliability matter as much five years from now as it does today, I think companies like Enbridge stand to benefit in a great way. That’s because Enbridge’s business is built on long-term, regulated and contracted cash flows from its pipelines, gas utilities, and renewables portfolio. This business model makes Enbridge’s revenue far less sensitive to day-to-day oil and gas prices than many think.
That stability has translated into 31 straight years of dividend increases, and management has already locked in another 3% raise for 2026. This increase is expected to bring the company’s yield toward the mid-5% range. To me, that would be a very attractive yield for long-term investors, aside from the capital appreciation upside I see ahead (leading to the TFSA purchase thesis).
A dividend supported by fundamentals
Second, it’s worth noting that Enbridge’s dividend is supported by real growth, not financial engineering.
Enbridge posted record 2025 results recently, showing an impressive 7% year-over-year jump in adjusted EBITDA. Additionally, the company’s distributable cash flow (DCF) per share rose into the mid‑$5 range. These results led Enbridge’s management team to increase its guidance on EBITDA and DCF per share as a result, and investors have eaten up this story.
Personally, I think more such announcements are likely to come over time. That’s because Enbridge has an impressive backlog of tens of billions of dollars of projects it will complete in the coming years, and could have an even bigger backlog if new projects get approved. Thus, there’s a meaningful growth thesis here aside from the mid-5% yield investors get. That’s why this stock is TFSA-worthy, in my books.
