Retirees are searching for ways to get better yield on their invested funds as they look to boost income that can complement the Canada Pension Plan, Old Age Security, and work pensions. One popular strategy to get decent returns involves owning high-yield dividend stocks inside a self-directed Tax-Free Savings Account (TFSA).
Source: Getty Images
BCE
BCE (TSX: BCE) is a contrarian pick today. The stock took a beating over the past four years, falling from more than $70 per share to the current price of around $31. It was actually below $30 at one point, but has picked up some momentum as bargain hunters sense the decline might be overdone.
High debt levels, price wars, immigration cuts, and challenging advertising environments for the radio and TV businesses all contributed to the pain that ultimately led to a large dividend reduction last year, as management moved to preserve cash flow. The surge in borrowing costs that occurred in 2022 and 2023 during the period of aggressive rate hikes by the Bank of Canada has since eased, but rates remain elevated.
The challenges that led to the decline will likely persist over the near term, but BCE’s current dividend payment should be safe. The company has done a good job of reducing expenses and is investing in new growth opportunities. BCE bought an internet services business in the United States and is building sovereign AI data centres to meet high demand from government and business clients who want to keep their data in Canada. Revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in slightly better in the second quarter (Q2) of 2026 compared to the same period last year.
Investors who buy BCE stock at the current share price can get a dividend yield of 5.5%.
Enbridge
Enbridge (TSX: ENB) is down to $71.50 per share at the time of writing, compared to more than $80 in recent weeks. The pullback gives investors who missed the big rally over the past two years a chance to buy ENB stock on a meaningful dip.
Enbridge reported Q2 2026 results that were largely in line with the same quarter last year. Adjusted EBITDA came in at $4.8 billion, compared to $4.6 billion in Q2 2025. Distributable cash flow (DCF) was similar to the same period last year, landing around $2.9 billion.
Enbridge has a $41 billion secured capital backlog. Management expects this to drive 5% growth in adjusted EBITDA and DCF over the medium term, which should support ongoing dividend increases. Enbridge raised the distribution in each of the past 31 years. Investors who buy ENB stock at the current level can get a dividend yield of 5.4%.
The dip in the share price might be due to the company’s recent announcement that it plans to put the second phase of its Mainline pipeline expansion on hold until Canadian oil companies have more clarity on policy and regulatory changes that would support investment in production growth. The $1.4 billion project would send more Canadian energy to the United States. This is a small part of Enbridge’s overall growth program, and additional expansion opportunities should emerge on both sides of the border in the coming years.
The bottom line
With Canadian inflation currently running below 3%, the high yields offered by BCE and Enbridge should be attractive for retirees. If you have some cash to put to work in a TFSA focused on generating high-yield passive income, these stocks deserve to be on your radar.
