Here’s the Average TFSA and RRSP for a 40-Year-Old in Canada

Building wealth in your 40s often starts with owning quality dividend-paying companies like these.

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Key Points
  • Many Canadians use TFSAs and RRSPs to build long-term wealth and generate retirement income.
  • Enbridge (TSX:ENB) offers a 5% dividend yield backed by a $40 billion growth backlog.
  • Fortis (TSX:FTS) combines a stable utility business with a 3.4% dividend yield and major expansion projects.

By the time most people reach their 40s, retirement planning usually becomes a big priority. According to Canada Revenue Agency data, the average TFSA fair market value for Canadians aged 40 to 44 was about $20,670 in the 2023 contribution year, highlighting both the progress many investors have made and the room that remains for long-term growth. At this stage, many investors focus on growing their Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) balances while generating reliable income and protecting their portfolios from market volatility.

While savings and investment balances can vary widely from person to person, dependable dividend stocks often remain at the core of successful long-term TFSA and RRSP portfolios. Fundamentally strong TSX-listed companies with durable businesses, dependable cash flows, and a long history of rewarding shareholders with dividends could help investors steadily grow their hard-earned savings over time.

In this article, I’ll highlight two Canadian dividend stocks that could be strong additions to a TFSA or RRSP for long-term investors.

woman holding steering wheel is nervous about the future

Source: Getty Images

A dividend giant to grow TFSA or RRSP savings

A dividend stock that naturally fits into a long-term TFSA or RRSP is Enbridge (TSX: ENB), as it keeps generating reliable cash flow across economic cycles. This Calgary-based energy infrastructure firm runs a diversified network of crude oil pipelines, natural gas transmission assets, gas utilities, storage facilities, and renewable power assets across North America.

Following a 23% rally over the last 12 months, ENB stock currently trades at $78.83 per share, giving it a market cap of $172 billion.

Enbridge’s distributable cash flow rose to $3.9 billion from $3.8 billion in the March 2026 quarter, with the help of higher cash distributions and lower current taxes.

Meanwhile, the company continues to invest heavily in future growth. One of its notable projects is the US$700 million Cone onshore wind project in Texas, which supports Meta Platforms’ data centre operations under a long-term power purchase agreement. Recently, Enbridge also approved a US$400 million expansion of the Tres Palacios natural gas storage facility to support growing export demand along the U.S. Gulf Coast.

With a secured capital backlog of $40 billion and annual investment capacity of $10 billion to $11 billion, Enbridge remains well-positioned for long-term upside. At the same time, its dividend yield of 5% makes ENB stock even more attractive for income-focused TFSA and RRSP investors.

A utility stock for TFSA or RRSP stability and income

Another strong option for long-term TFSA or RRSP investors is Fortis (TSX: FTS), especially for those who value stability and steady income. This Canadian utility giant operates regulated electric and gas utilities across North America and the Caribbean, which helps it provide investors with a stable and predictable cash flow.

After rising 14% in the last year, FTS stock now hovers close to $76 per share with a market cap of $38.7 billion.

In the first quarter, Fortis posted net profit of $501 million, slightly better than $499 million a year ago. Growth in its regulated rate base and favourable earnings timing at Central Hudson supported its financial performance, although some gains were offset by costs associated with rate base growth not yet reflected in customer rates.

Moreover, Fortis is advancing several major projects, including the Big Cedar Load Expansion project, which is expected to support significant new data centre demand by 2028. FortisBC Energy’s Tilbury LNG Storage Expansion project is also progressing through the environmental assessment process.

Fortis stock currently offers a dividend yield of 3.4%, backed by a long history of dividend growth and a highly regulated business model.

Foolish bottom line

You can’t expect to grow TFSA or RRSP savings by chasing short-term gains all the time. Instead, it could be achieved more reliably by owning quality businesses that could compound wealth over many years. Enbridge and Fortis both offer dependable dividends, strong underlying businesses, and clear growth plans that could help investors in their 40s steadily grow their retirement savings.

Fool contributor Jitendra Parashar has positions in Enbridge. The Motley Fool recommends Enbridge, Fortis, and Meta Platforms. The Motley Fool has a disclosure policy.

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