Pensioners and other dividend investors are searching for good TSX stocks to add to a self-directed Tax-Free Savings Account (TFSA) portfolio focused on generating reliable passive income.
In the current market conditions, where valuations in many segments are high and economic uncertainty could be on the way, it makes sense to consider top dividend-growth stocks that have long histories of raising the distribution throughout the economic cycle.
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Enbridge
Enbridge (TSX:ENB) trades near $77 per share at the time of writing compared to the 2026 high above $80. Investors can take advantage of the recent dip to secure a decent 5% dividend yield.
Enbridge owns extensive oil and natural gas pipeline networks in Canada and the United States. These assets continue to grow in value as demand rises for moving fuel to domestic end-users and export facilities.
Building new major pipelines faced significant government and public opposition over the past decade. A recent change in attitude in both Canada and the United States, however, could lead to a wave of new projects. Enbridge already has several pipeline developments on the go as part of its $40 billion capital program. Revenue and profit growth from these new assets should support steady dividend increases. Enbridge raised the dividend in each of the past 31 years.
In addition to the transmission of oil and natural gas, Enbridge expanded its asset portfolio in the past few years to include export terminals and renewable energy installations. The company also bulked up its utilities operations in 2024 when it spent US$14 billion to buy three American natural gas distribution utilities.
The company’s U.S. assets make Enbridge a good pick for investors who want exposure to the growth of the American energy sector through a Canadian firm. Enbridge moves about 30% of the oil produced in Canada and the United States. It also carries about 20% of the natural gas that is used by American businesses and homes.
Opportunity
Enbridge should benefit from strong oil and natural gas demand. Global buyers are turning to Canada and the United States to supply them with reliable supplies of liquefied natural gas (LNG) and oil. Enbridge’s oil export terminal in Texas is the largest in the state. The company is also a partner on the Woodfibre LNG export facility nearing completion on the coast of British Columbia.
Canada’s new goal of becoming an energy superpower will likely lead to new large oil and natural gas infrastructure projects. Enbridge has expertise in this area and would be a strong candidate to participate in the expansion of the pipeline networks if the terms are attractive for the firm.
Risks
Enbridge uses debt to fund part of its growth program. That makes it susceptible to rising borrowing costs, as investors found out in 2022 and 2023 when the U.S. Federal Reserve and the Bank of Canada aggressively raised interest rates to get inflation under control.
Rate cuts that occurred in 2024 and 2025 helped drive the share price higher. Looking ahead, sticky inflation could force the central banks to raise rates again later this year or in 2027. Small rate hikes spread out over a longer timeframe shouldn’t cause too much trouble, but multiple significant increases would likely put new pressure on the share price.
The bottom line
Enbridge pays a good dividend that should continue to grow. If you have some cash to put to work in a buy-and-hold portfolio focused on passive income, this stock deserves to be on your radar.
