Here’s How I’d Use My TFSA to Turn $25,000 Into $225 Every 3 Months

Investors can build a reliable stream of passive income by investing in high-quality dividend stocks with well-established businesses, resilient cash flows, and a proven track record of consistent dividend payments. Thanks to their durable business models, these companies are usually less prone to economic downturns and market volatility, allowing them to generate stable returns while helping strengthen investors’ portfolios.

With that in mind, here are two high-quality dividend stocks that can generate approximately $225 in quarterly dividend income from a combined investment of $25,000, with the capital split equally between the two. Meanwhile, investors can make these investments through their Tax-Free Savings Account (TFSA) to earn tax-free dividend income and potential capital gains. For this year, the TFSA contribution limit is $7,000, while the cumulative limit is $109,000.

Let’s take a closer look at these two dividend stocks.

TC Energy

TC Energy (TSX: TRP) is an excellent choice for income-seeking investors, supported by its resilient business model and 26 consecutive years of dividend increases. The energy infrastructure company operates an extensive natural gas pipeline network and a portfolio of power generation assets with approximately 4.7 gigawatts of capacity. Importantly, the company generates around 98% of its comparable EBITDA (earnings before interest, taxes, depreciation, and amortization) from long-term contracts and rate-regulated frameworks, making its earnings highly resilient to commodity price fluctuations, economic cycles, and broader macroeconomic uncertainty. This dependable business model has enabled TC Energy to grow its dividend consistently for 26 years, and the stock currently offers an attractive forward dividend yield of approximately 3.5%.

Looking ahead, TC Energy is well-positioned to benefit from rising natural gas production and growing demand for energy infrastructure across North America. To capitalize on these favourable trends, the company plans to invest $6–$7 billion annually to expand its asset base, increase system capacity, extend the life of existing assets, and maintain the safety and reliability of its operations. At the same time, management continues to focus on enhancing operating efficiency and improving profitability.

Supported by these investments, TC Energy expects adjusted EBITDA to range from $12.6 billion to $13.1 billion by 2028, with the midpoint implying annualized growth of approximately 5.4% from 2025. The company is also strengthening its balance sheet and targeting a long-term net debt-to-EBITDA ratio of 4.8 times. Backed by resilient cash flows, visible earnings growth, and an improving financial position, management expects to increase the dividend by 3% to 5% annually over the coming years, making TC Energy an attractive long-term investment for income-focused investors.

Canadian Natural Resources

Canadian Natural Resources (TSX: CNQ) is another high-quality dividend stock that I believe is well-suited for income-seeking investors. The oil and natural gas producer operates a portfolio of large, long-life, low-decline assets that require relatively modest capital reinvestment. Combined with its low-cost operating structure and efficient operations, these assets enable the company to generate strong profitability and robust free cash flow across commodity price cycles. Backed by these resilient cash flows, CNQ has continued to grow dividends for 26 years at an annualized rate of over 20% and currently offers an attractive forward dividend yield of approximately 3.8%.

Looking ahead, the company could continue to benefit from supportive industry fundamentals. Renewed geopolitical tensions in the Middle East have supported higher oil and natural gas prices, while long-term demand for hydrocarbons remains robust. ExxonMobil’s latest energy outlook projects that oil and natural gas will still account for approximately 55% of global energy demand by 2050, despite the ongoing transition to cleaner energy sources.

To capitalize on these favourable trends, CNQ plans to invest $6.9 billion this year to strengthen its production capabilities, with total production expected to average approximately 1.6 million barrels of oil equivalent per day (BOE/d), representing a 4.4% increase from last year. The company also boasts more than 5 billion BOE of proved reserves and a reserve life index of 32 years, providing exceptional long-term production visibility. Supported by its high-quality asset base, low-cost operations, and strong growth outlook, CNQ could continue growing its dividend, making it an attractive choice for income-focused investors.