By age 50, many Canadians have spent years building their Tax-Free Savings Accounts (TFSAs), making this stage of life a good time to see how those savings are progressing. According to Canada Revenue Agency data, TFSA holders aged 50 to 54 had an average fair market value of $35,235 in the 2024 contribution year. While every investor’s journey is different, the figure offers a useful benchmark for those looking to grow their tax-sheltered savings before retirement.
Reaching or surpassing that level isn’t just about making regular contributions. It also depends on owning businesses that could steadily increase in value while generating reliable income along the way. Companies with resilient operations, strong cash flows, and shareholder-friendly capital allocation could help investors make the most of their TFSA over the long run.
Here are two top Canadian dividend stocks that could be worthwhile additions to a long-term TFSA portfolio.
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Scotiabank stock
The first stock I’d look at for building beyond the average TFSA balance is Bank of Nova Scotia (TSX:BNS), better known as Scotiabank, which combines income with steady growth. As one of Canada’s largest banks, it has operations across Canadian banking, international banking, wealth management, and capital markets.
It’s not a sleepy income stock right now either, as BNS stock has climbed 65% over the last year. The stock now trades at $122.66 per share, with a market cap of about $151 billion. Despite these solid gains, it still offers a dividend yield of 3.7%, paid quarterly. That mix of price strength and income could be useful for investors trying to build a TFSA balance without giving up cash returns along the way.
Scotiabank’s latest results also showed strong fundamentals. In the April quarter, the bank’s net income rose to $2.63 billion, diluted earnings improved to $2 per share, and return on equity reached 13.1%. Notably, earnings from its global wealth management segment rose 19% year over year (YoY) to $476 million, while assets under management climbed 18% to $450 billion.
Scotiabank also has several long-term drivers that could continue supporting shareholder returns in the years to come. Its Canadian banking business provides a stable source of earnings, while its international operations offer exposure to faster-growing markets in Latin America.
At the same time, its expanding wealth management business could generate higher fee-based income as client assets continue to grow. That mix gives the bank multiple ways to increase earnings over time instead of relying on a single business segment.
Canadian Utilities stock
The next stock I’d consider for building a more dependable TFSA is Canadian Utilities (TSX:CU), which adds stability and consistent income. Rather than relying on economic cycles, it provides essential energy infrastructure through electricity and natural gas transmission, distribution, power generation, storage, and cleaner-fuel projects.
After rallying by 38% over the last year, CU stock currently trades at $52.30 per share with a market cap of about $10.8 billion. The stock offers a dividend yield of 3.6% at the current market price.
What makes Canadian Utilities stock attractive isn’t just its dividend. Most of its business is made up of regulated utility assets that generate dependable cash flow, giving the company a solid foundation to keep rewarding shareholders over time. At the same time, it continues investing in new infrastructure projects that could steadily expand its earnings base in the years ahead.
That strategy is already showing up in its results. In the first quarter, the company’s adjusted earnings rose to $242 million from $232 million a year ago, while it invested $353 million in capital projects, with the vast majority going toward its regulated utilities.
Large projects such as the Yellowhead Pipeline Project and the Central East Transfer-Out Project should also support its long-term growth by expanding Alberta’s energy infrastructure and increasing the company’s regulated asset base.
For TFSA investors, that combination of dependable dividend income, resilient cash flows, and steady long-term growth potential makes Canadian Utilities an attractive stock to buy and hold for years.
