The average Canadian TFSA balance at 70 may be smaller than many people expect. Canada Revenue Agency data shows that investors aged 70 to 74 held an average fair market value of $56,106 in their TFSAs during the 2023 contribution year.
While it’s a healthy amount of tax-free capital, retirees may need it to last for years, which makes the way it’s invested even more important. A good balance of income and long-term growth could help you reduce the pressure to sell assets too quickly.
In this article, I’ll look at two of the most reliable Canadian dividend stocks from the energy sector that could help retirees get more value from their TFSA savings.
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Pembina Pipeline stock
For retirees trying to make an average TFSA balance produce more income, Pembina Pipeline (TSX: PPL) could be a practical stock to start.
This Calgary-based company transports and processes oil, natural gas, and natural gas liquids through a broad network of pipelines, facilities, storage assets, and export infrastructure. Its stock trades at $67.93 per share with a market cap of about $40 billion. The stock has gained roughly 36% over one year and offers an annualized dividend yield of about 4.3%. Recently, Pembina raised its quarterly dividend by about 3.5% to $0.74 per share after reporting its first-quarter results.
Notably, Pembina’s revenue declined 7.7% year-over-year (YoY) in the first quarter to $2.1 billion, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) slipped 3% to $1.1 billion. The decline mainly came from narrower natural gas liquids spreads and a new toll structure on Alliance Pipeline.
Nevertheless, its adjusted earnings rose to $505 million from $489 million. Higher volumes in the facilities business and better performance across several pipeline systems helped offset the weaker areas. Adding to the optimism, the company also raised its 2026 adjusted EBITDA guidance to between $4.35 billion and $4.55 billion. Stronger commodity prices and better expected marketing results are expected to support the stronger guidance.
Pembina is also expanding beyond its traditional pipeline and midstream operations through the Greenlight Electricity Centre. The project is a 932-megawatt natural gas-fired power plant planned for Alberta’s Industrial Heartland. Once completed, it will provide dedicated electricity to Meta’s new artificial intelligence (AI) data centre under a long-term tolling agreement. Pembina owns 47.5% of the project and will help lead construction management. These investments could support future cash flow and dividend growth.
TC Energy stock
For a retiree seeking another income-producing TFSA holding, TC Energy (TSX: TRP) brings a larger asset base and stronger recent earnings momentum.
TC operates natural gas pipelines across Canada, the United States, and Mexico, along with power generation assets. After climbing 51% in the last year, this stock now trades at $96.32 per share and has a market cap of about $100 billion. At the current market price, it offers an annualized dividend yield of 3.6%.
In the first quarter, the company’s revenue rose 6.6% YoY to $3.9 billion, while its comparable EBITDA increased 14% to $3.1 billion. Growth across the U.S., Mexico, and power businesses drove the improvement. As a result, TC Energy’s comparable earnings reached $1 billion, while comparable earnings increased to $0.99 from $0.95 per share.
Its U.S. pipeline flows increased 5% YoY, and deliveries to liquefied natural gas facilities rose 12%. The company also set several delivery records during the quarter.
Its US$1.5 billion Appalachia Supply Project could become a major long-term growth driver. The project is backed by a 20-year take-or-pay contract and is expected to enter service in 2030. In addition, TC Energy is advancing Coastal GasLink expansion opportunities and other pipeline projects.
Overall, for investors around age 70, Pembina and TC Energy offer a great mix of dividend income and infrastructure-backed growth that could help an average TFSA balance work harder over time.
