Retirees and other dividend investors are searching for ways to generate steady passive income inside a self-directed Tax-Free Savings Account (TFSA). One popular strategy involves owning a diversified portfolio of TSX dividend stocks.
Many dividend stocks have pulled back in recent weeks, providing investors with an opportunity to get better yields on new positions.
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Enbridge
Enbridge (TSX:ENB) trades near $72 per share at the time of writing compared to more than $80 a few weeks ago. The drop has pushed the dividend yield up to 5.4%.
Enbridge raised the dividend in each of the past 31 years. The streak is likely to continue as management expects the $41 billion capital program to drive 5% annual growth in distributable cash flow over the next few years. Enbridge’s large presence in the United States provides investors with a good way to get exposure to growth opportunities in the American energy market through a Canadian stock.
TC Energy
TC Energy (TSX:TRP) is another Canadian energy infrastructure giant with assets in both Canada and the United States. The company is primarily focused on natural gas transmission and storage, while also operating power generation facilities.
TC Energy expects its capital investments to average around $6 billion per year in the near term. The surge in global and domestic natural gas demand bodes well for the company as it builds new natural gas infrastructure to connect producers to utilities, power generation facilities, and export terminals.
TC Energy has increased the dividend annually for the past 26 years. The stock is down about 8% in the last month and now offers a dividend yield of 4%.
BCE
BCE (TSX:BCE) saw its share price slide from more than $70 in 2022 to below $30. The company slashed its dividend by more than half in 2025 to preserve cash flow as debt expenses rose and revenue declined in the media business. Price wars in the mobile sector, along with a drop in new product sales due to lower immigration numbers, have added to the pain.
In order to offset the challenges in the legacy operations, management is pursuing growth opportunities in the fibre internet market in the United States while also building AI data centres in Canada to meet domestic demand for sovereign data protection.
It will take some time for the turnaround plan to gain traction, but the current dividend payout should be safe. At the time of writing, BCE trades near $32 and provides a 5.4% dividend yield.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is major producer of oil, natural gas liquids, and natural gas. The company has oil sands, conventional heavy and light oil, offshore oil, and natural gas assets. CNRL grows through a combination of strategic acquisitions and drilling programs.
Rising global demand for Canadian energy, along with new pipeline capacity, is positive for CNRL. The company has vast reserves that can be tapped to boost production to send to new export facilities.
Volatile energy prices can lead to big moves in the share price, so investors need to be able to ride out the turbulence. That being said, the dips should be good entry points to add to holdings in the stock. CNRL has the balance sheet strength to navigate downturns in the energy sector while providing steady dividend growth. The stock rebounded in recent weeks, but is still off the 2026 high and currently provides a yield of 3.8%.
Fortis
Fortis (TSX:FTS) raised its dividend in each of the past 52 years. Management plans to increase the distribution by 4% to 6% annually through at least 2030, supported by a $28.8 billion capital program.
Fortis gets most of its revenue from rate-regulated utility businesses. This means cash flow tends to be predictable and reliable through the full economic cycle.
The bottom line
Enbridge, TC Energy, BCE, CNRL, and Fortis should be solid picks right now for a buy-and-hold portfolio focused on generating passive income. If you have some cash to put to work, these stocks deserve to be on your radar.
