Retirees and other income investors are searching for attractive stocks with good track records of dividend growth to add to their self-directed Tax-Free Savings Account (TFSA) portfolios.
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TC Energy
TC Energy (TSX: TRP) is a major player in the North American energy sector with a core focus on natural gas transmission and storage. The company also has power generation assets.
The stock has more than doubled in the past two years, staging a strong recovery after going through a rough patch in 2022 and 2023 when rising interest rates hit the company just as it was borrowing heavily to get its Coastal GasLink natural gas pipeline completed.
TC Energy has done a good job of monetizing non-core assets to shore up the balance sheet while the completion of Coastal GasLink in British Columbia and another large pipeline project in Mexico has driven new revenue expansion.
Looking ahead, there are more big projects likely on the way as global demand for North American natural gas soars. TC Energy is planning to expand capacity along Coastal GasLink. The company is also in discussion with provinces and the Federal government about potentially building a natural gas pipeline to Churchill where it would supply fuel for a new liquified natural gas (LNG) export site.
TC Energy’s current capital program will see the company invest roughly $6 billion per year over the medium term on growth projects. This should support ongoing dividend increases. TC Energy raised the dividend by 3.2% for 2026, marking the 26th consecutive annual increase to the distribution.
Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) recently raised its dividend by 7%. It is also the 26th consecutive annual boost to the payout.
CNRL’s consistency in dividend growth through the volatility of the energy markets is possible due to its efficient use of capital and a strong balance sheet. The company is best known as an oil producer with a mix of oil sands, conventional light and heavy oil, and offshore oil operations, but CNRL is also a major natural gas producer. The diversified product portfolio helps smooth out fluctuations in commodity markets.
CNRL grows through a combination of strategic acquisitions and successful drilling programs. New oil and natural pipeline capacity that has been completed in the past couple of years is giving the company added access to global buyers. This enables CNRL to ramp up output to drive revenue and profit growth.
Canada’s new ambition to be an energy super power should bode well for CNRL in the coming years if new pipelines are actually approved and built to get oil and natural gas to new export facilities on the Canadian coast.
CNRL’s share price has given back some of the 2026 gains as oil prices ease on hopes that the U.S. and Iran will agree to open the Strait of Hormuz. Near-term fluctuations in oil prices could make CNQ a bit volatile in the coming weeks, but any additional weakness would be a chance to add to the position.
Investors can currently get a dividend yield of 3.9% from the stock.
The bottom line
TC Energy and CNRL pay attractive dividends that should continue to grow. If you have some cash to put to work in a dividend portfolio, these stocks deserve to be on your radar.
