Canadian pensioners are searching for good TSX dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolio focused on generating reliable and growing passive income.
In the current market conditions, where stocks are trading near record highs and economic turbulence might be on the way, it makes sense to consider stocks that have long track records of delivering steady dividend growth through challenging economic conditions.
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Enbridge
With a current market capitalization near $170 billion, Enbridge (TSX:ENB) is a giant in the North American energy infrastructure industry.
The business continues to grow through a combination of strategic acquisitions and internal projects. Enbridge diversified its asset portfolio in recent years through several moves that added export facilities, a renewable energy developer, and natural gas utilities. These businesses, when combined with the legacy oil and natural gas transmission infrastructure, have positioned Enbridge to benefit from new trends in the energy sector.
Demand for Canadian and American oil and natural gas is increasing as global buyers seek out reliable supplies from stable countries. Enbridge owns an oil export terminal in Texas and is a partner on the Woodfibre liquefied natural gas (LNG) export facility being built in British Columbia.
The company’s purchase of three natural gas utilities in the United States in 2024 for US$14 billion came just before interest in new gas-fired power generation facilities started to balloon as tech firms look to source electricity from new gas-fired power-generation facilities to feed AI data centres.
Enbridge’s solar and wind development group is also benefiting from demand for more renewable power from tech firms.
Earnings
Enbridge reported solid first-quarter (Q1) 2026 results that were largely in line with the same quarter last year. The company’s secured growth program is now at $40 billion, spread out across the various business groups.
Management is targeting adjusted earnings per share and adjusted distributable cash flow growth of about 5% annually over the medium term. This should support steady annual dividend hikes. Enbridge raised the dividend in each of the past 31 years.
Investors who buy ENB stock at the current price can pick up a dividend yield of 5%.
Risks
Enbridge uses debt to fund part of its capital program. This is normal for pipeline companies that invest billions of dollars in projects that can take years to complete. When interest rates increase, as they did in 2022 and 2023, the jump in borrowing costs can cut into profits while reducing cash that is available for distributions to shareholders.
The drop in Enbridge’s share price in 2022 and 2023 was directly related to rising interest rates in Canada and the United States. Enbridge started its rebound as soon as the central banks indicated they were done hiking rates. The rate cuts in 2024 and 2025 provided an extra tailwind.
Rising inflation caused by high oil prices could force the Bank of Canada and the U.S. Federal Reserve to increase rates later this year or in 2027. If that happens, and inflation rises more than expected, Enbridge’s share price could give back some gains.
The bottom line
Near-term weakness is possible, but pullbacks would be viewed as an opportunity to add to the position. Enbridge offers an attractive dividend that pays you well to ride out turbulence. If you have some cash to put to work in a buy-and-hold income portfolio, Enbridge deserves to be on your radar.
