TFSA Investors: 3 Dividend Stocks to Own for Decades

Given their resilient business models, strong dividend track records, and attractive long-term growth prospects, these two dividend stocks could be excellent additions to a TFSA portfolio.

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Key Points
  • Enbridge and Fortis offer attractive long-term investment opportunities for  TFSA investors, with stable cash flows and consistent dividend growth supported by well-established, regulated operations.
  • With Enbridge's robust pipeline of growth projects and Fortis's expansive capital investment plan, both companies are well-positioned to deliver sustained income and capital appreciation, enhancing their appeal for wealth creation in a TFSA.

Dividend stocks can be an excellent way to build long-term wealth, offering investors the potential for both stock price increases and a steady stream of dividend income. Reinvesting these payouts can further accelerate wealth creation through the power of compounding. However, as dividend payments are never guaranteed, investors should prioritize financially sound companies with well-established business models, resilient cash flows, and a proven track record of consistently returning capital to shareholders.

Investors can also hold these stocks in a Tax-Free Savings Account (TFSA), allowing eligible capital gains and dividend income to grow tax-free. With this in mind, let’s look at two quality dividend stocks that could be worth considering for long-term investment.

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins

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Enbridge

Enbridge (TSX: ENB) could be an excellent long-term addition to a TFSA, thanks to its stable cash flows, largely contracted and regulated business model, 31 consecutive years of dividend increases, and attractive dividend yield of 5.4%. The diversified energy infrastructure giant operates more than 200 income-generating assets, with approximately 98% of its earnings coming from long-term take-or-pay contracts and regulated assets. About 80% of its earnings are also linked to inflation, providing additional protection against rising costs. This highly predictable business model supports reliable cash flows and has enabled Enbridge to pay and grow its dividend consistently.

Looking ahead, rising oil and natural gas production across North America could drive the demand for energy infrastructure, benefiting Enbridge. The company has identified approximately $50 billion in growth opportunities through the end of the decade and plans to invest $10–11 billion annually to advance these projects. Management expects earnings and cash flow to grow at an annualized rate of approximately 5% through 2030, providing a solid foundation for future dividend growth. With these growth initiatives and a resilient cash-flow profile, management expects to return $40–45 billion to shareholders through 2030, further strengthening Enbridge’s appeal as a long-term TFSA investment.

Fortis

Fortis (TSX: FTS) is another reliable dividend stock that could be an excellent addition to a long-term TFSA portfolio, thanks to its low-risk, regulated utility operations. The company serves approximately 3.5 million customers, providing essential electricity and natural gas services. With a regulated asset base and a portfolio focused primarily on low-risk transmission and distribution operations, Fortis’s financial performance is relatively resilient to economic cycles, commodity price fluctuations, and market volatility. This dependable business model has enabled the company to raise its dividend for 52 consecutive years, while currently offering a forward yield of 3.3%.

Looking ahead, rising economic activity, transportation electrification, and the rapid expansion of AI-powered data centres could drive demand for electricity and natural gas, creating attractive growth opportunities for Fortis. To capitalize on these trends, the company is progressing with its $28.8 billion capital investment plan, which could expand its rate base at an annualized rate of approximately 7% through 2030 to $57.9 billion. Fortis also focuses on improving operational efficiency, maintaining disciplined capital allocation, and leveraging innovation to control costs and enhance profitability. Supported by these initiatives, management expects to increase its dividend by 4–6% annually through 2030, further strengthening Fortis’s appeal as a dependable long-term TFSA investment.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

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