Canadian investors are searching for good TSX stocks to buy for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on dividend income and long-term total returns.
The strong rally in the TSX over the past two years has pushed valuations to high levels in several sectors. If the economy falters in the coming year or two, a meaningful pullback would be expected. With this risk in mind, it makes sense to look at companies that have consistently increased their dividends during difficult economic times.
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Enbridge
Enbridge (TSX:ENB) trades near $77 at the time of writing compared to the 2026 high above $80. Investors can take advantage of the recent dip to pick up a solid 5% dividend yield and wait for ongoing dividend increases to boost the return.
Enbridge’s prospects have improved in the past year. International demand for North American oil and natural gas is on the rise as countries impacted by supply disruptions due to wars in Ukraine and Iran are scrambling to secure reliable long-term energy shipments from stable providers. Enbridge operates the largest oil export terminal in the United States and is a partner on the Woodfibre liquified natural gas (LNG) export facility being built on the coast of British Columbia.
Domestic natural gas demand is also expected to surge as new gas-fired power generation facilities are built to provide electricity for hundreds of new AI data centres. Enbridge’s extensive natural gas storage and transmission network, along with its natural gas distribution utilities, position the company to benefit from the coming increase in natural gas use in Canada and the United States.
Enbridge is also seeing strong demand for its wind and solar developments as tech firms look to secure renewable energy to supply part of the power needed for the new data centres.
Enbridge’s secured capital program is up to $40 billion. The revenue and profits generated from the new assets should enable the board to continue raising the dividend. Enbridge has increased the distribution in each of the past 31 years.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) has given back some of its 2026 gains in recent weeks amid falling oil prices. At the time of writing, the stock trades near $58. It was as high as $70 in March, but is still up about 25% this year.
Investors should expect ongoing volatility in the coming weeks and months as the energy market adjusts to the reopening of the Strait of Hormuz. Additional downside is certainly possible, but pullbacks would be viewed as an opportunity to add to the position.
CNRL is a major oil and natural gas producer. New export capacity completed in Canada in the past two years is already enabling the company to sell more product to international buyers. Expansion of Coastal GasLink (natural gas) and Trans Mountain (oil) would provide even more global access for Canadian producers. Canada’s goal of becoming an energy superpower could also lead to additional new pipelines being built as the country tries to reduce its dependence on the United States for energy sales.
Oil and natural gas prices might be volatile in the near term, but the long-run outlook for CNRL should be positive.
Investors who buy CNQ stock at the current level can get a dividend yield of 4.3%. The board has increased the distribution for 26 consecutive years.
The bottom line
Enbridge and CNRL pay attractive dividends that should continue to grow. If you have some cash to put to work in a buy-and-hold dividend portfolio, these stocks deserve to be on your radar.
