Building a reliable income stream within a Tax-Free Savings Account (TFSA) doesn’t have to be complicated. For that, you just need to focus on the top Canadian stocks that can consistently generate cash and return it to shareholders through dividends.
While high yields look tempting, consistency and long-term stability matter even more. Let’s take a closer look at one such TSX stock that stands out for its dependable payouts and solid growth outlook.
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Keyera stock
If you don’t know it already, Keyera (TSX: KEY) is a Calgary-based energy infrastructure company with a largely fee-for-service business model. Its operations span natural gas gathering and processing, natural gas liquids (NGLs) processing, transportation, storage, marketing, and a condensate system in Alberta. After climbing by nearly 29% over the last year, KEY stock currently trades at $51.81 per share with a market cap of $14.4 billion. It offers a dividend yield of 4.1% at the current market price, with quarterly payouts.
Keyera’s operational strength is driving financial growth
Keyera’s recent performance reflects a mix of stable operations and strategic execution. In the fourth quarter of 2025, the company reported adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $301 million, slightly down from $313 million a year earlier. However, excluding transaction costs related to the Plains acquisition, its adjusted EBITDA would have been $313 million for the quarter and reached $1.2 billion for the full year.
Meanwhile, its distributable cash flow (DCF) remained strong, coming in at $206 million in the fourth quarter, up from $168 million a year ago. Its gathering and processing segment delivered a record annual realized margin of $439 million with the help of higher throughput at key gas plants. At the same time, its liquids infrastructure segment posted a record $593 million in annual realized margin, supported by increased contracted volumes.
Notably, Keyera ended the fourth quarter with a net debt-to-adjusted EBITDA ratio of 1.8 times, well below its long-term target range of 2.5 to 3 times. This gives the company flexibility to invest in growth while maintaining balance sheet strength.
For 2026, it expects growth capital expenditures of $400 to $475 million and maintenance capital of $140 to $160 million. It also anticipates some financial impact from an extended outage at the Alberta Envirofuels Facility, estimated at around $110 million.
Focus on major projects
Keyera’s growth story is backed by several major projects. These include the KFS Frac 2 Debottleneck project, the KFS Frac 3 Expansion, and the KAPS Zone 4 project, all of which are expected to come online over the next few years. These initiatives will expand its capacity and strengthen its fee-based revenue streams.
In addition, Keyera’s planned acquisition of Plains’ Canadian NGL business is expected to expand its infrastructure footprint and strengthen its long-term growth potential.
Foolish bottom line
Keyera stands out as a reliable TFSA dividend stock backed by steady cash flows, disciplined growth investments, and a strong balance sheet. Its consistent payouts and long-term expansion plans make it a great choice for investors seeking consistent income and stability.
