If you are hunting for a stock that puts cash in your pocket year after year, TC Energy (TSX: TRP) deserves a closer look. The Canadian energy stock has raised its dividend payout for 26 consecutive years and offers a 4% yield in 2026. TC Energy generates the vast majority of its earnings from contracts that are locked in before a single cubic foot of gas moves.
For TFSA (Tax-Free Savings Account) investors who want a reliable passive income stream, TC Energy is one of the most compelling stories in Canada right now. Let’s see why.
TC Energy offers a growing dividend
Roughly 98% of TC Energy’s comparable EBITDA (earnings before interest, tax, depreciation, and amortization) is derived from either rate-regulated assets or long-term take-or-pay contracts. This means that customers are obligated to pay whether they use the capacity or not.
A predictable cash flow base allows management to plan for dividend hikes in advance. The company has raised the annual dividend payout from $0.85 per share in 2000 to $3.51 per share in 2026. It expects to grow the payout between 3–5% going forward.
In the first quarter of 2026, TC Energy’s Board declared a dividend of $0.8775 per common share, a 3.2% year-over-year increase.
In addition to collecting tools along its expansive pipeline network, TC Energy is at the center of one of the biggest structural shifts in North American energy in decades.
- Management expects North American natural gas demand to rise by 45 billion cubic feet per day between 2025 and 2035, roughly equivalent to adding all of Europe’s gas market in 10 years.
- The demand is being driven by liquefied natural gas exports, AI data centres, power generation, and coal-to-gas switching.
- TC Energy serves seven LNG facilities representing 30% of North American LNG feed gas, and its pipelines are near 60% of projected U.S. data centre growth.
The asset base itself has grown from $25 billion in 2000 to roughly $120 billion today. There is also a $21 billion secured capital program running through 2031, with management expressing confidence that annual net capital expenditures of $6 billion per year through 2030 will be fully allocated and potentially surpassed.
A strong performance in 2025
TC Energy reported a 9% year-over-year increase in comparable EBITDA in 2025. In Q4, it reported 13% EBITDA growth, approaching $3 billion.
For 2026, the company is guiding for a comparable EBITDA of $11.6 billion to $11.8 billion. By 2028, that range steps up to $12.6 billion to $13.1 billion.
In 2025, TC Energy placed $8.3 billion in projects into service, on schedule and more than 15% under budget. That kind of track record lends real credibility to the dividend growth guidance.
TC Energy is not flashy, and the stock will not double in a year. The blue-chip dividend stock has delivered an average annual total shareholder return of 13% since 2000, including both dividends and price appreciation.
But for TFSA investors seeking tax-free income that compounds reliably, this TSX dividend stock offers something rare: a 4% yield backed by contractually secured cash flows, a leadership team with a long track record of execution, and a growth pipeline that should support dividend increases for years to come.
