Canadian investors are searching for good TSX stocks to buy for their self-directed Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) portfolio focused on dividends and total returns.
In the current market conditions, where tariff uncertainty and rising oil prices threaten the economy, it makes sense to look for companies that are market leaders and have solid balance sheets to ride out turbulence while maintaining dividends.
Source: Getty Images
Royal Bank of Canada
Royal Bank (TSX:RY) is Canada’s largest financial institution with a current market capitalization of close to $310 billion.
The bank has strong domestic and global operations across several pillars, including commercial and retail banking, capital markets, wealth management, investor and treasury services, and insurance. Royal Bank is very profitable, consistently delivering return on equity numbers that are the envy of most global peers.
A strong balance sheet gives Royal Bank the ability to ride out recessions while also providing the flexibility to take advantage of acquisition opportunities that might surface during challenging market conditions.
At the time of writing, the stock provides a dividend yield of 3%.
Canadian National Railway
Canadian National Railway (TSX:CNR) has been under pressure for the past two years. Labour strikes and wildfires disrupted operations in 2024, while tariff uncertainty in 2025 forced management to walk back guidance. Soaring oil prices, recession risks, and ongoing trade negotiations between Canada, the U.S., and Mexico will be ongoing headwinds in 2026.
Near-term volatility should be expected, but contrarian investors can take advantage of the current conditions to add CN to their portfolios while it is out of favour. The company remains very profitable and is using excess cash to buy back shares. CN has increased its dividend annually for the past 30 years.
Fortis
Fortis (TSX:FTS) is another dividend-growth star. The board raised the distribution in each of the past 52 years. Fortis is working on a $28.8 billion capital program that will boost the rate base by an average rate of 7% per year through 2030. As the new assets are completed and go into service, the jump in cash flow should support planned annual dividend increases of 4% to 6% over the next five years.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is a major player in the Canadian energy patch with production assets that include oil sands, conventional heavy and light oil, offshore oil, natural gas liquids, and natural gas.
The company is adept at moving capital around the asset portfolio to maximize returns. CNRL also has the balance sheet strength to make large strategic acquisitions to boost production and reserves. The board has increased the dividend annually for the past 25 years. Rising demand for Canadian energy and the potential expansion of pipeline capacity in Canada should help drive revenue growth.
Enbridge
Enbridge (TSX:ENB) is another dividend-growth stock to consider for a buy-and-hold portfolio. The company raised the distribution in each of the past 30 years and should extend the streak over the medium term, supported by a $39 billion capital program and contributions from acquisitions. The stock just hit a new record high, but investors who buy ENB at the current price can still get a 5% dividend yield.
The bottom line
These five Canadian companies have the balance sheet strength to ride out market turbulence and should be solid buy-and-hold picks for a diversified portfolio focused on dividends and long-term total returns.
