My $14,000 TFSA Plan for $150 in Quarterly Tax-Free Income

The Canadian equity markets have become more volatile amid ongoing geopolitical tensions in the Middle East, persistent inflation, and rising oil prices. In this uncertain environment, investors should focus on high-quality dividend stocks with well-established businesses and resilient cash flows. Such companies can help strengthen a portfolio while providing a stable and reliable stream of passive income.

These consistent dividend payments can enhance financial stability and help preserve purchasing power during periods of elevated inflation. Moreover, reinvesting dividends can accelerate wealth creation through compounding, helping investors achieve their long-term financial goals sooner.

With that in mind, a $14,000 investment split equally between the following two Canadian dividend stocks can generate approximately $150 in quarterly dividend income. Moreover, investors can make these investments through their Tax-Free Savings Accounts (TFSA) to earn tax-free returns, including dividends and potential capital appreciation. Let’s take a closer look at these two Canadian stocks.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) is an excellent dividend stock for income-seeking investors, backed by its diversified revenue streams, resilient cash flows, and long history of dividend payments. The bank operates across multiple countries and offers a broad range of financial services, generating stable earnings from well-diversified sources regardless of the macroeconomic environment. This resilient business model has enabled Scotiabank to pay dividends consistently since 1833. With a quarterly dividend of $1.14 per share, the stock currently offers an attractive forward yield of approximately 3.7%.

Meanwhile, Scotiabank is strategically repositioning its business by expanding its higher-return North American operations while reducing its exposure to lower-growth, less-profitable Latin American markets. To support this strategy, the bank is working to acquire MapleMark Bank and the remaining shareholdings of Scotia Group Jamaica Limited (SGJL) that it does not currently own. The MapleMark acquisition could strengthen Scotiabank’s presence in the fast-growing Dallas market, while the SGJL transaction should improve capital allocation and enhance operational efficiency across its Caribbean operations.

In addition, a relatively elevated interest-rate environment should continue to support the bank’s core lending business. Scotiabank has also launched a share repurchase program that could reduce its outstanding share count by approximately 1.2%, increasing earnings per share and enhancing shareholder value. Supported by its diversified business model, dependable dividend track record, and strategic growth initiatives, Scotiabank remains an attractive choice for income-focused investors.

Enbridge

Another dividend stock I believe is a compelling choice for income-seeking investors is Enbridge (TSX:ENB). The energy infrastructure giant operates a highly diversified business that includes crude oil and natural gas pipelines, natural gas utilities, and renewable power assets. Approximately 98% of its earnings come from regulated assets and long-term contracts, while nearly 80% is protected by inflation-indexed mechanisms. This resilient business model enables Enbridge to generate stable and predictable cash flows regardless of commodity price fluctuations or broader economic conditions.

Backed by these dependable cash flows, Enbridge has paid dividends for more than 70 years and increased its dividend for 31 consecutive years. The stock currently offers an attractive forward dividend yield of approximately 4.9%.

Looking ahead, Enbridge is advancing its $40 billion secured capital program to expand its asset base and meet growing demand for energy infrastructure across North America. Supported by these investments, management expects adjusted earnings per share and distributable cash flow per share to grow at an annualized rate of around 5% over the coming years. Reflecting confidence in its long-term growth prospects, management plans to return $40–$45 billion to shareholders through dividends and share repurchases over the next five years. Combined with its resilient business model, attractive yield, and visible growth pipeline, Enbridge is an excellent choice for income-seeking investors.