Canadian pensioners and other dividend investors are wondering which TSX stocks are still good to buy right now for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on income and total returns.
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Fortis
Fortis (TSX:FTS) is a star when it comes to reliable dividend growth. The Canadian utilities firm has increased its distribution annually for the past 52 years. That’s the kind of consistency that income investors like to see when considering a buy-and-hold stock.
Fortis gets nearly all of its revenue from rate-regulated assets that include natural gas distribution utilities, power generation facilities, and electricity transmission networks. This means the cash flow tends to be predictable, which helps management plan growth investments.
Fortis is working on a $28.8 billion capital program that will significantly increase the rate base over the next five years. Revenue and cash flow growth from the new assets should support planned dividend increases of 4% to 6% per year through 2030.
Enbridge
Enbridge (TSX:ENB) has increased its dividend for 31 consecutive years. The energy infrastructure giant continues to grow through a combination of acquisitions and development projects. Enbridge bought three American natural gas utilities in 2024 to broaden its revenue stream. It also purchased an oil export terminal in Texas and is a partner in the Woodfibre liquified natural gas (LNG) export facility being built in British Columbia. In addition, Enbridge expanded its renewable energy business in recent years.
Demand for Canadian and American oil and natural gas is expected to rise as global buyers seek out safe and reliable supplies. Enbridge’s extensive oil and gas transmission, storage, and export assets put it in a good position to benefit.
Enbridge’s current $39 billion capital program will drive growth in earnings and distributable cash flow in the next few years. This should enable ongoing dividend hikes. Investors who buy ENB stock at the current level can get a dividend yield of 5.3%.
Due to its energy infrastructure expertise, Enbridge would be a candidate to participate in the construction and operation of any new major oil or natural gas pipelines as Canada moves to diversify its energy sales.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is a major Canadian energy player with assets that include oil sands, conventional light and heavy oil, offshore oil, natural gas liquids and natural gas production and reserves. The company has the financial clout to make large strategic acquisitions when energy markets are in a downturn and reap the rewards when prices rebound.
CNRL has increased its dividend annually for the past 26 years. The company’s diversified product portfolio, along with the strong balance sheet, enables it to maintain dividend growth through the energy cycles.
This stock can be volatile during big moves in energy prices, so investors need to have the stomach to ride out the turbulence in energy markets. At the time of writing, CNQ provides a dividend yield of 3.9%.
The bottom line
Fortis, Enbridge, and Canadian Natural Resources all pay good dividends that should continue to grow. If you have some cash to put to work in a dividend portfolio, these top TSX companies deserve to be on your radar.
