Canadian pensioners and other retirement investors are searching for good TSX dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolios focused on income and long-term total returns.
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Fortis
Fortis (TSX:FTS) is a Canadian utility company with power generation, electricity transmission, and natural gas distribution businesses primarily located in Canada and the United States. The stock trades near $78 per share at the time of writing, compared to the 2026 high above $83.
Fortis gets most of its revenue from rate-regulated businesses that provide essential services. Households and companies need electricity and natural gas regardless of the state of the economy. This makes Fortis an attractive to stock to hold through an economic downturn.
The reliable and predictable cash flow helps management plan capital investments to grow revenue and earnings. Fortis is currently working on a $28.8 billion capital program that is expected to boost the rate base from $42 billion to nearly $58 billion over five years. As the new assets get completed and go into service the extra revenue and cash flow should enable Fortis to meet its goal of delivering annual dividend increases of 4% to 6% through 2030. Fortis raised the dividend in each of the past 52 years, so the guidance should be solid.
Fortis has a number of other projects under consideration that could get added to the growth program. In addition, the company’s expertise in building and operating power grids would make Fortis a good candidate to participate in Canada’s new plan to create a national power grid.
The dividend yield is about 3.3% at the time of writing. This is lower than the yield available from other TSX stocks, but the dividend growth steadily increases the yield on the original investment and Fortis has a good track record of delivering strong long-term total returns for patient investors.
Enbridge
Enbridge (TSX:ENB) is another Canadian utility stock that has a long history of dividend growth. In fact, the company has increased the distribution for 31 consecutive years. The trend should continue, supported by the company’s $41 billion secured capital program and earnings contributions from recent acquisitions.
Enbridge diversified its asset portfolio in recent years with a big push in the United States. The company spent US$3 billion to purchase an oil export terminal in Texas and bought three American natural gas utilities for US$14 billion. Enbridge also acquired the third-largest wind and solar developer in the United States in a move to bulk up its renewable energy group.
The legacy oil and natural gas pipeline businesses are still strategically important for Enbridge, especially as domestic and international demand for North American energy products is rising. Enbridge moves roughly 30% of the oil produced in Canada and the United States and 20% of the natural gas used by American businesses and households.
Enbridge trades near $71 per share at the time of writing, compared to $80 last month. Investors can take advantage of the dip to pick up a dividend yield of 5.4%.
The bottom line
Fortis and Enbridge pay attractive dividends that should continue to grow. If you have some cash to put to work, these stocks deserve to be on your radar.
