If you use your Tax-Free Savings Account (TFSA) to simply hold idle cash, you might be missing out on one of the account’s biggest advantages. With the right investments, you can turn your TFSA into a reliable source of passive income that continues growing tax-free over time.
That’s exactly where well-established dividend stocks with durable business models, dependable earnings, and strong dividend histories could help you, as they can continue producing stable cash flow through different economic conditions. In this article, I’ll highlight two top Canadian dividend stocks that could help transform $25,000 in TFSA savings into a dependable stream of passive income.
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TC Energy stock
Energy infrastructure companies are popular among TFSA income investors because they typically generate stable and predictable cash flow. TC Energy (TSX: TRP) continues to stand out as one of the strongest examples on the TSX today. This Calgary-based firm operates a massive network of natural gas pipelines, power generation facilities, and energy infrastructure assets across North America.
Following a 36% run over the last year, TRP stock now trades at $94.29 per share with a market cap of roughly $98.3 billion. Despite the recent surge in its share price, the stock still offers a healthy 3.6% annualized dividend yield, paid on a quarterly basis.
Although commodity prices have remained volatile lately due to geopolitical conflicts, TC Energy’s financial performance continues to highlight the resilience of its operations. In the first quarter of 2026, the company’s comparable EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 14% year-over-year (YoY), while its segmented earnings rose 10% from a year ago.
Strong operational execution played a major role in that growth as the company achieved seven delivery records across North America during the quarter while also securing approval for a US$1.5 billion Columbia Gas expansion project. That project could become an important long-term growth driver as TC Energy continues expanding into high-demand natural gas markets.
More importantly for income investors, this TFSA-friendly stock’s infrastructure-based business model helps support stable cash flow generation, which strengthens its ability to continue paying dependable dividends over time.
Scotiabank stock
Another Canadian dividend giant that could help TFSA investors generate reliable cash flow is Bank of Nova Scotia (TSX: BNS), commonly known as Scotiabank. This Toronto-based lender operates across Canadian banking, international banking, wealth management, and capital markets. Its operations span more than 15 countries, giving the bank diversified exposure across multiple markets and customer segments.
At the time of writing, BNS stock traded at $111.57 per share with a market cap of $137.4 billion. Over the last year, the stock has surged 53% while offering an attractive dividend yield of 4%, with quarterly payouts.
In the second quarter of its fiscal 2026 (ended in April), the bank’s net income jumped to $2.6 billion from $2 billion a year ago, while its Canadian banking segment earnings surged 53% YoY with the help of strong revenue growth and lower credit loss provisions. During the quarter, the bank’s wealth management business also remained a key growth driver as earnings in that segment rose 19% YoY, while assets under management increased 18% to $450 billion.
Overall, Scotiabank’s improving earnings, growing wealth business, and strong capital position suggest its long-term growth prospects remain solid, making it a dependable TFSA stock for investors seeking both income and stability.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND PER SHARE | YEARLY PAYOUT |
| TC Energy | $94.29 | 121 | $11,409 | $0.8775 | $424.71 |
| Scotiabank | $111.57 | 121 | $13,500 | $1.140 | $551.76 |
| TOTAL | $24,909 | $976.47 | |||
| Prices as of May 27, 2026 |
Turn $25,000 in TFSA savings into a reliable cash flow
If you made a combined investment of about $25,000 in TC Energy and Scotiabank today, you could generate roughly $976 in annual dividend income based on their current yields, with the potential for that cash flow to grow over time as both companies continue increasing earnings and dividends. Backed by stable businesses, strong market positions, and reliable payout histories, these two TSX dividend stocks could help TFSA investors build a steady and tax-free passive income stream for years to come.
