TFSA Gold: 2 Dividend Stocks to Lock In Now for Decades of Passive Income

Two steady dividend payers could help turn a TFSA contribution into long-term tax-free income.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 27, 3:45 pm EDT

Key Points

Pembina pays a solid yield backed by fee-based pipelines and growing cash flow, though projects and commodities add risk.
Emera offers utility-style stability and a 4% yield, but heavy spending and interest rates can pressure returns.
Together they balance infrastructure growth and regulated dependability, making them useful long-term TFSA anchors.

A great Tax-Free Savings Account (TFSA) doesn’t need much to do well. It needs cash flow, patience, and companies that can keep sending money through good markets and bad. That’s why Pembina Pipeline (TSX: PPL) and Emera (TSX: EMA) look like two dividend stocks to consider now. Both sit in essential industries, pay reliable dividends, and give investors a way to turn today’s contribution room into decades of tax-free passive income.

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PPL

Pembina stock looks especially useful for investors who want income tied to Canada’s energy backbone. The company moves and processes oil, natural gas, and natural gas liquids through pipelines, gas plants, storage assets, and export infrastructure.

That relevance stands out as demand for energy infrastructure remains strong, even when commodity prices bounce around. Pembina stock’s first-quarter 2026 results showed earnings of $498 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.13 billion. Adjusted cash flow from operating activities reached $790 million, or $1.36 per share. Management also raised its 2026 adjusted EBITDA guidance to a range of $4.35 billion to $4.55 billion.

The dividend gives the story its TFSA appeal. Pembina stock raised its quarterly dividend by about 3.5% to $0.735 per share, or $2.94 annualized, yielding 4.2% at writing. That’s not the biggest yield on the TSX, but it looks strong because Pembina stock combines income with real infrastructure growth. New projects, like the Wapiti Expansion and K3 Cogeneration Facility, entered service on time and on budget in the quarter.

There are risks, of course. Pembina stock still faces commodity exposure through parts of its business. Regulators, debt costs, and project execution can also affect returns. Yet its fee-based assets give it more stability than a pure oil and gas producer. For a TFSA investor with a long runway, that makes Pembina stock a strong income anchor.

EMA

Emera brings a different kind of stability. It owns regulated electric and gas utilities, with major operations in Florida, Nova Scotia, and other markets. Utilities don’t usually excite investors at cocktail parties. That’s fine. They can still do valuable work inside a TFSA since people need power and gas through every economic cycle.

The latest results showed why EMA deserves attention. In the first quarter of 2026, Emera grew adjusted earnings per share (EPS) 7% to $1.37 from $1.28 last year. Adjusted net income rose to $415 million from $379 million. The company also deployed more than $870 million of its $4.0 billion 2026 capital plan and said it remained on track to deliver adjusted EPS growth above its 5% to 7% annualized guidance range for the year.

Emera expects a $20 billion five-year capital plan through 2030, with much of that spending focused on Florida. Those investments should expand its rate base, support earnings growth, and help fund dividend increases. With Emera’s dividend offering a quarterly payout of $0.7325 per share, it yields about 4% at writing.

The trade-off? Emera carries a heavy capital plan, and utilities depend on regulators approving fair returns. Higher interest rates can also pressure valuations. Dividend growth may stay modest, especially as management works to improve its payout ratio. Still, modest doesn’t mean weak. In a TFSA, a steady 4% yield that grows slowly can still build serious wealth over decades, especially when those payments keep buying more shares and lower the urge to trade during rough market patches.

Bottom line

Together, Pembina stock and Emera offer a simple mix. One connects investors to energy infrastructure. The other connects them to regulated utilities. Neither stock promises overnight riches. Both offer durable cash flow, useful yields, and businesses built around services people keep using, even from $7,000 invested.