Canadian pensioners and other dividend investors are searching for good TSX stocks to add to their self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on income and long-term total returns.
Markets are near record highs, but economic headwinds could be on the way if high energy prices cause a global recession. With that scenario in mind, it makes sense in this environment to consider stocks that have long histories of delivering steady dividend growth through the full economic cycle.
Source: Getty Images
Enbridge
Enbridge (TSX:ENB) trades near $73 per share at the time of writing. The stock is up 11% in 2026, but recently pulled back from $77, offering investors who missed the surge over the past three months a chance to get in on a dip.
Enbridge trended higher for most of the past 30 months, after an extended decline that was caused by soaring interest rates in 2022 and 2023. The energy infrastructure giant uses debt to fund part of its growth program that includes acquisitions and development projects. Rising interest expenses can put pressure on earnings while cutting into cash that can be used to reduce debt or pay dividends. The rally that started in late 2023 coincided with the shift in market expectations from fear of higher rates to anticipation of rate cuts. The Bank of Canada and the U.S. Federal Reserve eventually reduced rates in 2024 and 2025, providing an extra tailwind for Enbridge.
Looking ahead, additional rate cuts are unlikely in the near term unless the economy goes into a recession. Support for Enbridge’s share price, however, should come from the $39 billion capital program that is expected to deliver steady earnings and distributable cash flow growth in the next few years. At the same time, rising demand for Canadian and American oil and natural gas should drive strong results in Enbridge’s oil export operations as well as its extensive oil and natural gas transmission assets.
The stock has enjoyed a nice run, but new investors can still pick up a solid 5.3% dividend yield today. Additional downside would be an opportunity to add to the position. Enbridge has increased the dividend for 31 consecutive years.
Fortis
Fortis (TSX:FTS) is a good example of a dividend stock that income investors can buy and hold for decades. The company owns a diversified portfolio of rate-regulated businesses that include natural gas distribution utilities, power generation facilities, and electricity transmission networks.
Power demand is expected to rise in Canada and the United States in the coming years to supply new AI data centres. This will drive the construction of gas-fired power stations that use extensive amounts of natural gas. In Canada, the federal and provincial governments plan to build a national power grid. Fortis has expertise in constructing and operating electricity networks, so it would be a good candidate to participate in any expansion of power infrastructure.
Fortis already has a $28.8 billion capital program on the go that will boost the rate base steadily over the next five years. As the new assets go into service, the boost to cash flow should support planned annual dividend increases of 4% to 6%. Fortis raised the distribution in each of the past 52 years.
The bottom line
Near-term market volatility should be expected, but Enbridge and Fortis offer proven track records of delivering steady dividend growth. If you have some cash to put to work in a buy-and-hold income portfolio, these stocks deserve to be on your radar.
