Canadian investors are looking for good stocks to add to their self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on dividends and long-term total returns.
Recent weakness in the share prices of some top TSX dividend-growth stocks is giving savers a chance to buy at discounted prices while also picking up decent dividend yields.
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TC Energy
TC Energy (TSX: TRP) trades near $88 at the time of writing compared to $99 last month. The stock is up more than 25% over the past 12 months.
TC Energy reported solid Q2 2026 results with comparable adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rising to $2.9 billion from $2.6 billion in the same quarter last year. Management said the company is on track to deliver full-year results near the top end of its 2026 guidance.
In the first half of the year, TC Energy added $3 billion in new projects to the growth program, which will see the company invest roughly $6 billion annually over the medium term on capital initiatives. As the new assets are completed and go into service, the boost to earnings should support steady dividend increases. TC Energy raised the dividend in each of the past 26 years.
Rising natural gas demand in Canada, the United States, and Mexico provides TC Energy with strong growth opportunities in the coming years. The company operates nearly 100,000 km of natural gas pipelines and 650 billion cubic feet of natural gas storage across the three countries.
As Canada moves to become an energy superpower, TC Energy would be a good candidate to participate in the construction and operation of any new natural gas pipelines that get built to supply natural gas to liquified natural gas (LNG) export facilities. It is already planning to double the transmission capacity on its recently completed Coastal GasLink pipeline carrying natural gas to the LNG Canada export site on the coast of British Columbia.
Investors who buy TRP stock at the current price can get a dividend yield of 4%.
Fortis (TSX: FTS) trades near $77 per share at the time of writing compared to the 2026 high around $83. The stock price has risen more than 10% in the past 12 months.
Fortis owns and operates utility assets, including power generation, electricity transmission, and natural gas distribution businesses primarily located in Canada and the United States. The company has a $28.8 billion capital program on the go that will increase the rate base from $42 billion to nearly $58 billion over five years. Earnings growth from the new assets should support planned annual dividend increases of 4% to 6% through at least 2030.
Fortis has expertise in building and operating electricity transmission networks, so it would be another company that could participate in new major Canadian energy projects. The government wants to create a national power grid as part of its energy superpower program.
Fortis has increased the dividend for 52 consecutive years. At the current share price, investors can get a 3.4% dividend yield.
The bottom line
Near-term volatility is expected, but TC Energy and Fortis pay good dividends that should continue to grow. If you have some cash to put to work, these stocks deserve to be on your radar.
